SUBHASH CHAND,GHAZIABAD V. ITO, WARD 1(3), GHAZIABAD

ITA 2451/DEL/2024

AI Insights

The case involves Subhash Chand, the legal heir of the late Harish Chand, who appealed against the order of the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre, Delhi, for the assessment year 2011-12. The appeal was initially time-barred by three days, but the Tribunal condoned the delay, finding it was due to bona fide reasons. The original assessment was made under sections 147 and 144 of the Income Tax Act, 1961, following the sale of immovable property by Harish Chand, which was not responded to by the legal heirs, leading to an ex-parte assessment and addition of Rs.3,37,56,000 as Long Term Capital Gains. The Tribunal noted the lack of compliance from the assessee in previous proceedings and the need for a thorough examination of the distribution of sale proceeds among Harish Chand's sons.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 29204 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 02-12-2024
• Assessment Year: 2011-2012
• Appeal Filed On: 16-05-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAYA CHAUDHARY
• Keywords: Condonation of delay; Set aside; Capital Gains
• Section: 147; 148

Judgement Text

" आयकर अपीलीय अिधकरण िदʟी पीठ “जी”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ एवं ŵी रेणु जौहरी, लेखाकार सद˟ क े समƗ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SMT. RENU JAUHRI, ACCOUNTANT MEMBER आअसं.2451/िदʟी/2024 (िन.व. 2011-12) ITA No.2451/DEL/2024 (A.Y.2011-12) Subhash Chand, Legal heir of late Shri Harish Chand, 64 Rori Pargana Jalalabad, Modingar, Ghaziabad, Uttar Pradesh 201201 PAN: EDQPS-6317-K ...... अपीलाथᱮ/Appellant बनाम Vs. National Faceless Appeal Centre, Income Tax Officer, Ward 1(3) Delhi ..... ᮧितवादी/Respondent अपीलाथŎ Ȫारा/ Appellant by : None ŮितवादीȪारा/Respondent by : Ms. Jaya Chaudhary, Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 02/12/2024 घोषणा कᳱ ितिथ/ Date of pronouncement : : 02/12/2024 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (hereinafter referred to as 'the CIT(A)') dated 14.03.2023, for assessment year 2011-12. 2 ITA No. 2451/DEL/2024 (AY 2011-12) 2. The appeal is time barred by three days. The assessee has filed an application seeking condonation of delay in filing of appeal. After perusal of application we have satisfied that delay in filing of appeal was for bonafide reasons and not on account of negligence or inaction on the part of assessee/appellant. The delay in filing of appeal is condoned and appeal is admitted for hearing on merits. 3. A perusal of file reveals that the Assessment Order has been passed u/s. 147 r.w.s. 144 of the Income Tax Act,1961(hereinafter referred to as 'the Act') and even the CIT(A) has dismissed appeal of the assessee in an ex-parte proceedings. 3.1. As per the facts emanating from records, Shri Harish Chand had sold immovable property during Financial Year 2009-10 for a total consideration of Rs.4,21,95,000/-. The sale deed was registered on 30.04.2010, i.e. during the period relevant to assessment year 2011-12. On the basis of AIR information, the Assessing Officer (AO) issued notice u/s. 148 of the Act on 23.03.2018. In the meantime Harish Chand died on 25.09.2015, and his son Subhash Chand stepped into his shoes as legal heir, since none responded to the notice u/s. 148 of the Act, the AO completed assessment invoking the provisions of section 144 of the Act and made addition of Rs.3,37,56,000/- on account of Long Term Capital Gains. Against the Assessment Order dated 12.11.2018, the assessee filed appeal before the CIT(A). The CIT(A) issued notice to the assessee on four occasions. Since there was no compliance from assessee’s side, the CIT(A) dismissed the appeal of assessee in an ex-parte proceedings. 4. A perusal of statement of facts filed before the CIT(A) reveals that apart from Subhas Chand, legal heir of deceased. Harish Chand had two more sons and the 3 ITA No. 2451/DEL/2024 (AY 2011-12) sale proceeds of agricultural land are stated to be divided among three sons of Harish Chand. However, this fact is unsubstantiated so far. Taking into consideration entire facts of the case, we deem it appropriate to restore the appeal back to AO for denovo assessment after affording reasonable opportunity of making submissions to the assessee, in accordance with law. 5. The assessee is directed to respond to the notice served by the AO, without fail. The assessee shall furnish his current address/email-id for service of notice to the AO within 30 days from the date of receipt of this order, if the current address of the assessee is different from the one already available with the Department. 6. In the result, impugned order is set aside and appeal of the assessee is allowed for statistical purpose, Order pronounced in the open court on Monday the 02nd day of December, 2024. Sd/- Sd/- (RENU JAUHRI) (VIKAS AWASTHY) लेखाकार सद᭭य/ACCOUNTANT MEMBER ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी/Delhi, ᳰदनांक/Dated 02/12/2024 NV/- ᮧितिलिप अᮕेिषतCopy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. 4 ITA No. 2451/DEL/2024 (AY 2011-12) BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI "