The Income Tax Appellate Tribunal (ITAT), Delhi bench, dismissed the appeal due to non-compliance with the notice issued by the Income Tax Department for determining the value of land under Section 50C of the Income Tax Act, 1961.
The assessee, Chiranji Lal Bairwa, filed the appeal against the order passed under Section 147 r.w.s. 144 of the Income Tax Act by the NFAC for the assessment year 2010-11.
The department received information that the assessee had sold land during FY 2009-10 for Rs. 5,00,000/- within the municipal limits of Jaipur city. The value of this land under Section 50C of the IT Act, 1961, is Rs. 8,36,375/. Accordingly, the department issued a notice. There was no compliance by the assessee to this notice.
Thus, the assessment under Section 147/144 of the Income Tax Act was completed ex-parte.
Aggrieved by the order, the assessee filed an appeal before the NFAC, who dismissed the appeal of the assessee due to non-appearance. Thereafter, the assessee filed an appeal against the NFAC’s order before the tribunal.
During the appeal proceedings before the tribunal, again the assessee failed to provide any documentation to support their argument that the Rs. 8,31,375 addition is unsustainable and that the proceeds from the sale of the property are capital assets, the receipt of which is not fully taxable.
It was observed that the department provided various opportunities to the assessee to substantiate the claim but failed to do so.
After reviewing the facts and records, the two-member bench of Rathod Kamlesh Jayantbhai (Accountant Member) and Sandeep Gosain (Judicial Member) dismissed the appeal due to non-compliance with the notice issued by the Income Tax Department for determining the value of land under Section 50C of the Income Tax Act.
Monisha Choudhary, counsel appeared for the revenue.
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