Ramkishan vs ITO

PER ANUBHAV SHARMA, JM:

This is an appeal preferred by the assessee against the order dated 25.06.2024 of the Commissioner of Income-tax (Appeals), NFAC (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in appeal No.NFAC/2013-14/10168948 arising out of the appeal before it against the order dated 24.03.2022 passed u/s 147 r.w.s. 144 r.w.s. 144B of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) by the ITO, Ward 1(5), Meerut (hereinafter referred to as the Ld. AO).

On hearing both the sides, we find that the ld.CIT(A) has dismissed the appeal of the assessee for want of prosecution and upholding the assessment of income under short-term capital gains while the assessee claims the same was long-term capital gain.

The ld. AR pointed out that the assessee is a farmer from a rural background having no access to e-mail and have no knowledge of ITBA portal was entirely dependent on earlier counsel. Due to this peculiar circumstances, the appellant could properly represent his case which resulted in ex parte order both at the assessment stage and before the ld.CIT(A). It was submitted that on merits if ld. CIT(A) had considered the issue it will come up that ancestral land was sold and the income is chargeable to long-term capital gains. It was also pointed out that the ld. CIT(A) has also not considered the credit of pre-paid taxes in computation of income.

In the light of the aforesaid, we are of the considered view that given the nature of income and status of assessee, it is an appropriate matter where setting aside the assessment order to the file of the ld.AO will serve the ends of justice.

The appeal of the assessee is allowed for statistical purposes. The issues on merits are restored to the files of the AO to pass an order afresh after giving due opportunity of hearing to the assessee.