SATYA NARAYAN SINGH,PATNA V. ITO, WARD-6(2), PATNA

ITA 574/PAT/2024

AI Insights

The case involves an appeal by Satya Narayan Singh against the order of the CIT(A), which confirmed the assessment made by the Assessing Officer under sections 147 and 144 of the Income-tax Act, 1961, assessing capital gains of Rs.1,34,97,643. The CIT(A) had passed an ex parte order due to the non-response of the assessee to multiple notices. The assessee contended that he did not receive the notices due to medical issues and was unable to respond. The ITAT found merit in the assessee's argument regarding the lack of proper opportunity to present his case and thus remanded the matter back to the CIT(A) for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 360872 (ITAT-PATNA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-05-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2015-2016
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ASHWANI KR. SINGAL
• Assessee Lawyers: ALOK KUMA R
• Keywords: Set aside; Capital asset; Opportunity of being heard; Sale consideration of property below Jantri Value; Capital Gains; Principle of natural justice
• Section: 147; 50C

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PATNA BENCH PATNA VIRTUAL HEARING AT KOLKATA BEFORE SHRI DUVVURU RL REDDY, VICE PRESIDENT AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER ITA No. 574/PAT/2024 Assessment Year: 2015-16 Satya Narayan Singh Murlichak, Near Airport, PO B.V. College, Patna-800014. (PAN: EADPS2935B) Vs. ITO, Ward-6(2), Patna (Appellant) (Respondent) Present for: Appellant by : Shri Alok Kumar, Advocate Respondent by : Shri Ashwani Kr. Singal, JCIT Date of Hearing : 06.05.2025 Date of Pronouncement : 21.05.2025 O R D E R Per Sanjay Awasthi, Accountant Member : This appeal arises from the order u/s. 250 of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) dated 25.06.2024 passed by Ld. CIT(A), NFAC, Delhi. 2. In this case, there is a delay of 12 days for which the assessee has filed a detailed petition praying for condonation of the said delay. In this petition, it has been stated that due to medical problems the assessee was advised rest by the doctor and hence, he could not promptly file the appeal before the Hon’ble ITAT when the time was due. Considering the short delay in the matter and the reasons given for the said delay, we hereby condone the delay and admit this appeal for adjudication. 2 ITA No. 574/Pat/2024 Satya Narayan Singh, AY: 2015-16, 3. In this case, the ld. Assessing Officer is seemed to have passed an order u/s. 147 r.w.s. 144 of the Act. In this order, the Assessing Officer has assessed capital gains at Rs.1,34,97,643/-. Aggrieved with this case, the assessee approached the Ld. CIT(A). However, it was recorded on pages 3 and 4 of the impugned order that five notices given to the assessee fixing the dates of hearing, were not responded. Accordingly, the Ld. CIT(A) proceeded ahead to pass an ex parte order by confirming the action of Assessing Officer. 4. Further aggrieved with this action, the assessee has filed the present appeal with the following grounds: “1. For that, on the facts and circumstances of the case, Ld. CIT(A) is not justified in confirming the order of assessment because the assessing officer has passed the ex-parte order without providing proper opportunity. 2. For that, on the facts and circumstances of the case, Ld. CIT(A) erred in passing the ex-parte order without issuing the notice through other means as provided ix] s 282 of the IT Act. Therefore, it is against the natural justice. 3. For that, on the facts and circumstances of the case, Ld. CIT(A) erred in confirming the order of assessment because the assessing officer has made the addition of Rs.1,34,97,643/- on account of irrelevant consideration and assumption of LTCG after wrongly invoking section 2(47),45,48 & sac of the Act. 4. For that, on the facts and circumstances of the case, Ld. CIT(A) erred in confirming the order of assessment because the assessing officer has erroneously considered that the capital has been transferred while title of the deed clearly shows that it is Development Deed. 5. For that, on the facts and circumstances of the case, Ld. CIT(A) erred in confirming the order of assessment because the assessing officer has erroneously considered and added LTCG u/s 50C of the Act since provision of section sac is not applicable in the present case and construction cost has been derived only on assumption basis. 6.For that, the ground taken herein above is not prejudicial to each other. 7. For those other grounds, if any, shall be urged at the time of hearing of this appeal, as the appellant crave the right to add or amend the ground at any stage of appellate proceedings.” 5. Before us, the ld. AR took us through the facts of the case and stated that for some reason the assessee could not receive the notice 3 ITA No. 574/Pat/2024 Satya Narayan Singh, AY: 2015-16, sent from the office of Ld. CIT(A) through e-mail. The ld. AR thereafter assailed the action of the Ld. CIT(A) in passing the ex parte order. 6. The ld. DR, on the other hand, relied on the order of Assessing Officer and stated that it was the duty of the assessee to make a representation before the Ld. CIT(A) in case he wanted any relief thereon. 7. We have carefully considered the rival submissions and also gone through the records. We find that the impugned order is an ex parte order and hence, considering the totality of facts and circumstances, we set aside the impugned order and remand this matter back to the file of Ld. CIT(A) for fresh adjudication. Needless to say, the ld. CIT(A) would give adequate opportunity of being heard and the assessee would do well to avail of such opportunities. 8. In the result, the appeal of the assessee is allowed for statistical purposes. 9. Order is pronounced on 21st May, 2025. Sd/- Sd/- (Duvvuru RL Reddy) (Sanjay Awasthi) Vice President Accountant Member Dated: 21st May, 2025 JD, Sr. P.S. Copy to: 1. The Appellant: Shri Satya Narayan Singh 2. The Respondent. ITO, Ward-6(2), Patna 3. CIT(A), NFAC, Delhi 4. CIT 5. DR, ITAT, Patna Bench, Patna 6. Guard file. 4 ITA No. 574/Pat/2024 Satya Narayan Singh, AY: 2015-16, True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "