SHIVPRAKASH RAMCHARAN SHARMA,AHMEDABAD V. THE ITO, WARD-1(2)(4), AHMEDABAD

ITA 511/AHD/2025

AI Insights

This case involves an appeal by Shivprakash Ramcharan Sharma against the order of the National Faceless Appeal Centre (NFAC), Delhi, concerning the assessment year 2012-13. The primary issues in the appeal were the reopening of the case under section 147 of the Income Tax Act and the additions made under section 50C and capital gains not offered for tax. The Assessing Officer had reopened the case based on information that the assessee sold immovable property at a lower value than the jantri or stamp value, leading to additions in the assessed income. The CIT(A) upheld these additions, which led to the current appeal. The tribunal found that certain issues, particularly the details of the sale consideration and the timings of the receipts, needed further verification and thus remanded the case back to the CIT(A).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705789 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A. P. SINGH
• Assessee Lawyers: ADJOURNMENT APPLICATION FILED
• Keywords: Sale consideration of property below Jantri Value; Tax effect
• Section: 147; 148; 144; 50C

Judgement Text

"THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH Before Dr. BRR Kumar, Vice President And Ms. Suchitra Kamble, Judicial Member Shivprakash Ramcharan Sharma, Vora Mansuri Ni Chawl, Dudheshwar Road, Ahmedabad PAN: ALLPS4940B (Appellant) Vs The ITO, Ward-1(2)(4), Ahmedabad (Respondent) Assessee by: Adjournment Application filed Revenue by: Shri A.P. Singh, Sr.D.R. Date of hearing : 02-07-2025 Date of pronouncement : 03-07-2025 आदेश/ORDER Per Suchitra Kamble, Judicial Member: This is an appeal filed against the order dated 17-10- 2023 passed by National Faceless Appeal Centre (NFAC), Delhi for assessment year 2012-13. 2. The grounds of appeal are as under:- “1. That the ld. CIT(A) erred in law and in the facts of the case in confirming the order of the AO in reopening the case u/s 147 of the act. 2. That the Ld. CIT(A) erred in law and in the facts of the case in confirming the order of the AO in making addition of Rs 30,09,925/- being capital gain not offered for tax. ITA No. 511/Ahd/2025 Assessment Year 2012-13 I.T.A No. 511/Ahd/2025 Shivprakash Ramcharan Sharma, A.Y. 2012-13 2 3. That the Ld (IT(A) erred in law and in the facts of the case in confirming the order of the AO in making addition of Rs. 11,11,000/- u/s 50C of the act. Total tax effect Rs. 12,35,977/-” 3. The assessee is an individual and filed return of income for assessment year 2012-13 on 19-03-2023 declaring total income of Rs. 1,87,040/-. The Assessing Officer received information that the assessee sold immoveable property of Rs. 30,09,925/- on 15-09-2011. However, the jantri value of the property or the stamp value of the property is Rs. 41,20,925/- and the assessee paid the stamp duty of Rs. 2,02,000/-. The Assessing Officer held that it attracts section 50C of the Act. Based on the said information, the assessee’s case was reopened u/s. 147 of the Act and notice u/s. 148 of the Act was issued to the assessee on 29-03-2009. During the assessment proceedings, the assessee did not make any compliances and hence assessment order was passed u/s. 144 r.w.s. 147 on 09-12-2019 determining the total assessed income at Rs. 43,07,965/-. The Assessing Officer made addition of Rs. 11,11,000/- on account of difference of sale consideration u/s. 50C of the Act and Rs. 30,09,925/- on account of capital gain not offered. 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. I.T.A No. 511/Ahd/2025 Shivprakash Ramcharan Sharma, A.Y. 2012-13 3 5. At the time of hearing, the assessee filed adjournment application to its representative. Since the issue is related to the ex-parte order both at the level of CIT(A) as well as before the Assessing Officer, we are taking up this appeal and rejected the adjournment application. 6. The ld. D.R. relied upon the assessment order and the order of the CIT(A). 7. We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the assessee though has not filed any documentary evidences or clarifications regarding the difference of sale consideration amounting to Rs. 11,11,000/- u/s. 50C of the Act, the assessee in Form 35 filed before the CIT(A) has mentioned that as per the sale deed, the initial consideration was fixed at Rs. 11,11,000/- first part of such consideration was received by the assessee on 23-01-2023 of Rs. 1,75,000/-. Further, consideration was also received between 23-01-2003 and 29-05-2011 as is discernible from the sale deed considered by the Assessing Officer. These issues need to be verified and hence the issue is remanded back to the file of the CIT(A) for proper adjudication and verification of the issues on merit. The assessee is directed to file the relevant details before the CIT(A). The CIT(A) will adjudicate the issue as per Income Tax Act verifying the details given by the assessee. There is a delay of 431 days for which the assessee has filed the affidavit for delay condonation and the reason stated therein appears to be I.T.A No. 511/Ahd/2025 Shivprakash Ramcharan Sharma, A.Y. 2012-13 4 genuine, hence the delay is condoned. Thus, the appeal of the assessee is partly allowed for statistical purposes. 8. In the result, the appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open court on 03-07-2025 Sd/- Sd/- (Dr. BRR Kumar) (Suchitra Kamble) Vice President Judicial Member Ahmedabad : Dated 03/07/2025 आदेश क\u0006 \u0007\bत ल प अ\u000fे षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 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 "