URMILA SINGH,BHOPAL V. ITO,2(3), BHOPAL

ITA 562/IND/2024

AI Insights

The case involves Urmila Singh, the appellant, who contested an ex-parte assessment order passed by the AO under sections 147 and 144B of the Income-tax Act, 1961, for the Assessment Year 2019-20. The AO had made an addition of Rs. 78,84,000 as capital gain from the sale of a property, without allowing deductions for costs, etc., as per sections 48 and 45(1) of the Act. The CIT(A) upheld the AO's decision due to the appellant's non-submission. The ITAT found merit in the appellant's request for a fresh assessment and remanded the case back to the AO, emphasizing the principles of natural justice and fair play.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 34566 (ITAT-INDORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2019-2020
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: FORASSESSEESUBMITTEDTHATTHECAPITALGAINASSESSED; FORREVENUEAGREESWITHTHEPRAYEROFLD.ARBUTMAKESA; SHRIASHISHPORWAL
• Assessee Lawyers: SHRIN.D.PATWA; .
• Keywords: Principle of natural justice
• Section: 147; 144

Judgement Text

"Page 1 of 3 आयकरअपीलीयअिधकरण, इंदौरɊायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER AND SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER ITA No.562/Ind/2024 Assessment Year:2019-20 Urmila Singh 66, Narayan Nagar, Hoshangabad Road Huzur, Bhopal बनाम/ Vs. ITO-2(3), Bhopal (Assessee/Appellant) (Revenue/Respondent) PAN: QXHPS0400Q Assessee by Shri N.D. Patwa, Adv. & AR Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 02.01.2025 Date of Pronouncement 27.01.2025 आदेश/ O R D E R Per B.M. Biyani, A.M.: Feeling aggrieved by order of first-appeal dated 03.06.2024 passed by learned Commissioner of Income-Tax (Appeals), NFAC, Delhi [“CIT(A)”] which in turn arises out of assessment-order dated 13.03.2024 passed by learned Assessment Unit of Income-tax Department [“AO”] u/s 147 r.w.s. 144B of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2019-20, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36). Urmila Singh ITA No. 562/Ind/2024 - AY 2019-20 Page 2 of 3 2. On hearing learned Representatives of both sides, it emerges that the CIT(A) has decided first-appeal ex-parte qua assessee and thereby upheld the order of AO for the reason that the assessee did not make any submission before him despite opportunities given. It is further observed that the AO has also passed ex-parte assessment-order u/s 144 after making an addition of Rs. 78,84,000/- on account of capital gain from sale of a property. Ld. AR for assessee submitted that the capital gain assessed by AO is against the provision of section 48/45(1) in as much as the AO has taken entire sale value of property as capital gain without giving deduction of costs, etc. Ld. AR further submitted that the assessee is ready to file necessary details before AO and in the interest of justice and also for computation of correct taxable income in accordance with provisions of Act, this case ought to be restored at the level of AO for a fresh adjudication. 3. Ld. DR for revenue agrees with the prayer of Ld. AR but makes a request to direct the assessee to represent his case before AO and do not seek unnecessary adjournments. 4. Considering above submissions and also having regard to the principle of natural justice and fair play, we deem it fit to remand this matter back to the file of AO for adjudication afresh after giving necessary opportunities to assessee. The assessee is also directed to ensure participation in the hearings as may be fixed by AO and do not seek Urmila Singh ITA No. 562/Ind/2024 - AY 2019-20 Page 3 of 3 unnecessary adjournments failing which the AO shall be at liberty to pass appropriate order in accordance with law. Ordered accordingly. 5. Resultantly, this appeal is allowed for statistical purpose. Order pronounced by putting on notice board as per Rule 34 of ITAT Rules, 1963 on 27/01/2025 Sd/- Sd/- (DINESH MOHAN SINHA) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक/Dated : 27/01/2025 Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order S SRer .Sr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore "