SATISH RAMANBHAI PATEL,VADODARA V. THE INCOME TAX OFFICER, WARD-3(1)(4), VADODARA

ITA 672/AHD/2024

AI Insights

This case involves an appeal by Satish Ramanbhai Patel against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeals Centre, Delhi, concerning the assessment year 2015-16. The primary issues in the appeal included the reopening of proceedings under section 148 of the Income Tax Act, the addition of Rs. 1,00,00,000 as capital gains without allowing the benefit of indexed cost of acquisition, and various procedural errors related to notices and interest charges. The Tribunal noted the assessee's non-compliance with earlier notices due to illiteracy and lack of understanding of the income tax proceedings. Consequently, the Tribunal decided to remand the case for a fresh assessment, providing the assessee an opportunity to comply with the procedural requirements.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 35015 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 21-11-2024
• Assessment Year: 2015-2016
• Appeal Filed On: 09-04-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MAMTA SINGH
• Keywords: Capital asset; Fair market value; Cost of acquisition; Capital Gains
• Section: 148; 144; 250; 48

Judgement Text

"THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “B” BENCH Before: Dr. BRR Kumar, Vice President And Ms. Suchitra Kamble , Judicial Member Satish Ramanbhai Patel, At & PO Kamarol, Kamaral Waghodia Vadodara PAN: AROPP3757E (Appellant) Vs The ITO, Ward-3(1)(4) Ahmedabad (Respondent) Assessee by: Shri Sanket Bakshi, A.R. Revenue by: Smt. Mamta Singh, Sr. D.R. Date of hearing : 21-11-2024 Date of pronouncement : 22-11-2024 आदेश/ORDER PER : DR. BRR KUMAR, VICE PRESIDENT:- This is an appeal filed by the assessee against the order of the ld. Commissioner of Income Tax, CIT(A), National Faceless Appeal Centre, Delhi, in proceeding u/s. 250 vide order dated 22/11/2023 passed for the assessment year 2015-16. ITA No. 672/Ahd/2024 Assessment Year 2015-16 I.T.A No. 672/Ahd/2024 A.Y. 2015-16 Page No. Satish Ramanbhai Patel vs. ITO 2 2. The grounds of appeal taken by the assessee are as under:- “All the grounds of appeal in this appeal are mutually exclusive and without prejudice to each other. Reopening of Proceedings u/s. 148 of the Act 1. The learned Commissioner of Income Tax (Appeals), National Faceless Appeals Centre (\"the CIT(A)\") and the learned Income Tax Officer, Ward 3(1)(4), Vadodara (\"the AO\") erred in fact and in law in reopening the proceedings of the Appellant u/s. 148 of the Act. 2. The learned CIT(A) and the AO erred in fact and in law in issuing notice u/s. 148 of the Act which was barred by limitation u/s. 149 of the Act. 3. The learned CIT(A) and the AO erred in fact and in law in issuing notice u/s. 148A of the Act beyond the stipulated time as per Section 149 of Act. Addition of Rs.1,00,00,000 as Capital Gains 4. The learned AO erred in fact and in law in making an addition of Rs.1,00,00,000/-without allowing the benefit of indexed cost of acquisition as eligible u/s. 48 of the Act. 5. The learned AO erred in fact and in law in making an addition of the gross value of sales without ascertaining the FMV of the capital asset as on 01.04.2001 as per Section 48 of the Act. 6. The learned CIT(A) and the AO erred in fact and in law in making the addition to the total income of the Appellant without considering the submission made in proper perspective. Other Grounds 7. The learned CIT(A) erred in fact and in law in dismissing the appeal as infractuous after application of section 249(4) of the Act. 8. The learned CIT(A) and the learned AO erred in fact and in law in charging interest u/s. 234Aofthe Act. 9. The learned CIT(A) and the learned AO erred in fact and in law in charging interest u/s. 234BoftheAct. 10. The learned CIT(A) and the learned AO erred in fact and in law in initiating proceedings u/s. 271 (l)(C) of the Act. 11. Your Appellant craves the right to add, to alter, to substitute, delete or modify all or any of the above grounds of Appeal.” 3. Heard the arguments of both the parties. The appeal is time barred by 79 days and the same is condoned. In this case, the assessment order has been passed on 19-03-2023 for assessment year 2015-16 u/s. 144 as the assessee has not made any compliance to the notices issued by the Assessing Officer. The Assessing Officer made addition of Rs. 1.2 lakhs on account of I.T.A No. 672/Ahd/2024 A.Y. 2015-16 Page No. Satish Ramanbhai Patel vs. ITO 3 capital gain and interest income. Record before us also reveals that the assessee has not made any compliance before the ld. CIT(A) which led to passing of an ex-prate order. The ld. CIT(A) has also rejected the appeal of the assessee as due advance tax has not been paid. 4. Before us, the ld. counsel for the assessee has submitted that the assessee is an illiterate and was not well versed with the income tax proceedings hence could not make any compliance and prayed that given an opportunity due compliance would be made before the revenue authorities. The ld. D.R. fairly accepted the proposal that the matter be looked into by the Assessing Officer. Hence, keeping in view the specific facts of this case, the matter is remanded to the Assessing Officer to initiate assessment proceedings de-novo after obtaining the receipt of payment of Rs. 5,000/- by the Assessee to Prime Minter Relief Fund as accepted by the ld. Counsel during the hearing before us. 5. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 22-11-2024 Sd/- Sd/- (SUCHITRA KAMBLE) (DR. BRR KUMAR ) JUDICIAL MEMBER VICE PRESIDENT Ahmedabad : Dated 22/11/2024 आदेश क\u0006 \u0007\bत ल\fप अ\u000fे\fषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue I.T.A No. 672/Ahd/2024 A.Y. 2015-16 Page No. Satish Ramanbhai Patel vs. ITO 4 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील\u0012य अ\u0013धकरण, अहमदाबाद "