Treatment of sale proceeds u/s 69A of the IT Act

Last updated: 13 September 2021

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Quick Summary

This Income Tax Appellate Tribunal ruling concerns an individual who sold a property for Rs. 41,06,000 but did not file a return of income. The Assessing Officer reopened the case and, due to the assessee's non-response to notices, passed an ex-parte order determining the total income at the sale proceeds. The assessee's appeal was allowed for statistical purposes.

Court :
ITAT Delhi

Brief :
This appeal filed by the Assessee is directed against the ex-parte Order Dated 27.11.2019 of the Ld. CIT(A)-12, New Delhi, relating to the A.Y. 2011-2012.

Citation :
ITA.No.326/Del./2020

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCHES “SMC” : DELHI
[THROUGH VIDEO CONFERENCING]
BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER
ITA.No.326/Del./2020
Assessment Year 2011-2012

Ms. Vanita Chopra,
H.No.104-C, Block,
Ashok Vihar, Phase-I,
New Delhi – 110 052.
PAN AIYPC8499B

The Income Tax Officer,
Ward-34(3),
New Delhi.

For Assessee : Shri Ved Jain, Advocate
For Revenue : Shri R.K. Gupta, Sr. D.R.
Date of Hearing : 02.09.2021
Date of Pronouncement : 02.09.2021
ORDER

Facts of the case, in brief, are that the assessee is an individual. The case of the assessee was reopened on the basis of the AIR information received that she has sold a property for Rs.41,06,000/- registered with Sub-Registrar- VI-A, Pitampura, Delhi during the F.Y. 2010-2011 relevant to the A.Y. 2011-2012 and has not filed her return of income for the impugned assessment year. Although notice under section 148 of the I.T. Act, 1961 was issued to the assessee on 26.03.2018.

2. Since the assessee did not respond to the statutory notices issued by the A.O, the A.O. in the ex-parte Order passed under sections 147/144 of the I.T. Act, 1961 determined the total income of the assessee at Rs.41,06,000/-.

3. The assessee is also hereby directed to appear before the A.O. without seeking any adjournment under any pretext, failing which, the A.O. is at liberty to pass appropriate Order as per Law. I hold and direct accordingly. Grounds raised by the assessee are accordingly allowed for statistical purposes.

4. In the result, appeal filed by the assessee is allowed for statistical purposes.

Please find attached the enclosed file for the full judgement

FAQ :

The main issue was the treatment of sale proceeds from a property sale under Section 69A of the Income Tax Act, where the assessee failed to file a return of income.

The property was sold for Rs. 41,06,000.

The case was reopened based on AIR information received indicating the sale of a property and the non-filing of a return of income for the relevant assessment year.

As the assessee did not respond to notices, the Assessing Officer passed an ex-parte order determining the total income at Rs. 41,06,000.

The Income Tax Appellate Tribunal allowed the appeal filed by the assessee for statistical purposes.