TEJPAL SINGH YADAV,NOIDA V. ITO, WARD-3(5), NOIDA

ITA 835/DEL/2024

AI Insights

The case involves Tejpal Singh Yadav, the appellant, contesting an order from the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre, which arose from an initial assessment by the National Faceless Assessment Centre, Delhi. The primary dispute revolves around the tax treatment of interest received on compensation for land acquired by Noida Authority and the source of funds used to create FDRs. The CIT(A) had dismissed the appeal for want of prosecution but also sustained the addition on merits, referencing a judgment from the Punjab & Haryana High Court, which the appellant sought to distinguish. The Tribunal found the need for a factual verification regarding the compensation received and the creation of FDRs, leading to the restoration of the matter to the AO.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 474542 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 28-10-2024
• Assessment Year: 2013-2014
• Appeal Filed On: 22-02-2024
• Other Referred Cases: Multiplan India (P) Ltd., 38 ITD 320, Mahender Pal Narang vs. CBDT, CWP No.17971 of 2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMIT KATOCH
• Assessee Lawyers: SATYAJEET GOEL
• Section: 147; 144; 201

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : H : NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER ITA No.835/Del/2024 Assessment Year: 2013-14 Tejpal Singh Yadav, S.O. Bhora, Near Mata Mandir, Village-Rasulpur, Newada Sector-62, Noida (Uttar Pradesh) – 201 301. PAN: ALPPT8514N Vs ITO, Ward-3(5), Noida. (Appellant) (Respondent) Assessee by : Shri Satyajeet Goel, CA Revenue by : Shri Amit Katoch, Sr. DR Date of Hearing : 28.10.2024 Date of Pronouncement : 06.11.2024 ORDER PER ANUBHAV SHARMA, JM: This appeal is preferred by the assessee against the order dated 26.12.2023 of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in Appeal Nos.NFAC/2012-13/10169787 arising out of the appeal before it against the order dated 31.03.2022 passed u/s 147 r.w.s. 144 r.w.s.144B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by ITA No.835/Del/2024 2 the National Faceless Assessment Centre, Delhi (hereinafter referred to as the Ld. AO). 2. On hearing both the sides, we find that the assessment order was passed u/s 147 r.w.s. 144 of the Act and the order of the ld. First Appellate Authority is also ex parte. We find that following the decision in Multiplan India (P) Ltd., 38 ITD 320, in para 8.3, the CIT(A) mentions that the appeal of the assessee is liable to be dismissed for want of prosecution. However, the CIT(A) had also sustained the addition on merits. 3. We find that the issue primarily involved in the case of the assessee is treatment required to be given to the amount received by the assessee in the form of interest on compensation/enhanced compensation received from Noida Authority in lieu of the acquisition of landholding of the assessee by the said authority. The issue also concerns the FDRs created by the assessee which the ld. AR has submitted that same was out of the compensation proceeds only. Ld. AR has tried to distinguish the judgment of the Hon’ble Punjab & Haryana High Court in the case of Mahender Pal Narang vs. CBDT, CWP No.17971 of 2019, order dated 19.02.2020, which is relied by the ld. CIT(A). As the issue requires verification of facts about the heads under which the assessee had received the compensation or sources of creation of FD, we find it an appropriate case to restore the issue for a fresh determination by the AO. Accordingly setting aside the assessment order the issue on merits is restored with the AO for afresh ITA No.835/Del/2024 3 determination. Needless to say, adequate opportunity of hearing shall be given to the assessee. 4. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 06.11.2024. Sd/- Sd/- (BRAJESH KUMAR SINGH) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 06th November, 2024. dk Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asstt. Registrar, ITAT, New Delhi "