Shiksha vs Income Tax Officer

This appeal by the assessee is directed against an ex-parte order of the Commissioner of Income Tax (Appeals), NFAC, Delhi (hereinafter referred to as 'the CIT(A)') dated 20^th January, 2026, for assessment year 2016-17.

A perusal of the impugned order shows that the assessee had received compensation under Land Acquisition Act on compulsory acquisition of land. Thereafter, the assessee had filed an application under Section 54 of the Land Acquisition Act for enhancement of the compensation. The same was allowed. However, the enhanced compensation was not offered to tax. Hence, notice under Section 148 of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') was issued to the assessee. Since there was no response from the assessee to notice under Section 148 or the subsequent notices issued under Section 142(1), the Assessing Officer was constrained to complete the assessment under Section 144 of the Act. The Assessing Officer, vide assessment order dated 20^th January, 2026, made addition of ₹27,77,100/- in respect of enhanced compensation received by the assessee under Land Acquisition Act. The assessee carried the matter before the CIT(A). The CIT(A) issued three notices to the assessee but there was no response from the assessee to the said notices. The CIT(A), in ex-parte proceedings, confirmed the addition made by the Assessing Officer. Hence, the present appeal by the assessee.

Considering entire facts of the case and in the interest of justice, I deem it appropriate to restore the matter back to the Assessing Officer for de-novo assessment after affording reasonable opportunity of making submissions to the assessee, in accordance with law.

The assessee shall respond to the notice(s) issued by the Assessing Officer, without fail. The assessee, may update his email address on the portal of Income Tax Department within a period of 30 days from the date of receipt of this order, so that the Assessing Officer can issue notice to the assessee on the correct/functional email address to the assessee.

In the result, impugned order is set aside and appeal is allowed for statistical purposes, in terms aforesaid.