Due to gross carelessness caused by noncompliance despite numerous notices, a fine of Rs. 2,000/- was levied

Fact and issue of the case

This appeal filed by the assessee is directed against order of the ld. CIT(A), National Faceless Appeal Centre, Delhi dated 15-06-2022 for the assessment year 2010-11 wherein the assessee has raised the following grounds of appeal :-

That under the facts and circumstances of the case, the ld. CIT (A) has erred in sustaining the addition of Rs. 17,19,182/- made by the ld AO on account of Long Term Capital Gain by adopting the valuation done by the ld. DVO as sale consideration of the agricultural land sold by assessee on one side and also reducing the cost of acquisition claimed by the appellant resulting into an addition of Rs. 17,19,182/-.

That under the facts and circumstances of the case, the ld. CIT (A) has erred in sustaining the action of the ld. AO who adopted the valuation done by ld. DVO as sale consideration of the property sold by the appellant without dealing with the objections filed by the appellant on such valuation.

That under the facts and circumstances of the case the ld. CIT (A) has erred in sustaining the action of the ld. AO in reducing the cost of acquisition of the property claimed by the appellant merely on his estimations.

Observation of the court

We have considered the rival submissions as well as the relevant material on record. At the outset, we noticed that the ld. CIT (A) while deciding the appeal of the assessee has categorically in para 5.1 of his findings has recorded that notice in the case of assessee was issued on 14.01.2021 for furnishing written submissions/documents on or before 28.01.2021. Since there was no compliance on the part of the assessee, therefore, another notice was again issued on 09.03.2021 to the assessee to furnish the written submission etc. on or before 15.03.2021. This time again the said notice was not complied with by the assessee. Therefore, another notice was issued on 28.04.2022 to the assessee to furnish written submission/documents etc. on or before 06.05.2022. Another notice was issued on 10.05.2022 for compliance on 17.05.2022. Thereafter, again another notice was issued on 24.05.2022 for compliance on 30.05.2022 but still the assessee failed to comply with the repeated notices. Therefore, the ld. CIT (A) decided the appeal filed by the assessee by observing in para 6.2 of his order as under :-

During the appellate proceedings, the appellant was provided many opportunities as enumerated above. The appellant, for the reasons best known to him has remained non-compliant. No material facts have been brought on record to rebut the action of the AO. In view of the above facts, I am of the considered view that the AO had sufficient reason to believe that capital gain arising out of sale of land had escaped assessment. Hence, the reopening of the case of the appellant u/s 147 of the Act is justified. Therefore, this ground of appeal is dismissed.

” Thus, on perusal of the order of the ld. CIT (A) herein above, we find that the ld. CIT (A) has confirmed the order of the AO in absence of any submissions from the side of the assessee and also non appearance of the assessee before the ld. CIT (A). From the entire sequence of events and the conduct of the assessee in non compliance of the repeated notices, it appears gross negligence on the part of the assessee and wastage of precious time. In our considered view, non compliance of notice issued by the Authorities and non appearance before the Authorities inspite of repeated notices/summons is dis-regard towards the Authorities. Be that as it may, without going into merits, considering the interest of natural justice, one more opportunity is granted to the assessee, and the file is restored back to the ld. CIT (A) for consideration afresh, subject to cost of Rs. 2,000/- for negligent attitude during income tax proceedings, to be deposited in the Prime Minister’s Care Fund and proof thereof should be produced.

Since we have restored the matter to the file of the ld. CIT (A) for adjudicating the matter afresh after providing reasonable opportunity to the assessee, the other grounds raised have become infructuous and need no adjudication.

In the result, appeal of the assessee is partly allowed for statistical purposes.

Order pronounced in the open court on 23/02/2023.