Santosh Ramdas Moze Vs ITO (ITAT Pune)
Assessee had not filed return for AY 2015-16. Case was flagged as P1 risk on Insight Portal due to large property transaction. AO issued notice u/s 148A(b) on 23.03.2022; no reply was filed. AO thereafter issued notice u/s 148 & initiated reassessment. In response to 142(1), Assessee submitted Development Agreement dated 29.05.2014 showing transfer of land to R.G. Developers on 50% sharing basis with possession handed over & refundable security deposit of Rs.40 lakh received. AO invoked s.2(47)(v) r.w.s.53A, held that transfer occurred in AY 2015-16 & taxed Rs.1,23,75,000 as LTCG because Assessee did not furnish cost of acquisition.
CIT(A)/NFAC dismissed appeal ex-parte relying on B.N. Bhattacharjee (SC). Before Tribunal, Assessee submitted that Form 35 specifically sought physical notices but NFAC sent only e-notices which he could not access due to lack of technological familiarity. Tribunal noted that entire addition was made without proper details only because of non-response, and CIT(A) also did not test merits. In the interest of justice, Tribunal restored matter to CIT(A)/NFAC with direction to give one final opportunity to Assessee to file cost details & supporting evidences and decide issue as per law. Assessee also directed to strictly comply without seeking adjournment. Appeal allowed for statistical purposes.
