Seenappa Chandra Shekar Vs ITO (ITAT Bangalore)
Email Address Ignored – Natural Justice Violated – Ex Parte Dismissal Set Aside- ITAT Restores Case on Agricultural Land Exemption Claim
Assessee, an individual, filed his return on 20.02.2018 declaring income of ₹3.67 lakh. Based on property transaction information, AO reopened assessment u/s 147 & issued notice u/s 148 on 31.03.2021. Despite subsequent notices u/s 142(1) & 144, no compliance was made. AO noted that Assessee sold 2 acres 21 guntas of land to Satyanarayana Educational Trust for ₹1.00 crore & treated it as non-agricultural property. Allowing 15% as cost, AO computed long-term capital gain of ₹90.14 lakh.
On appeal, CIT(A) dismissed the matter ex parte, observing that five notices were issued but Assessee failed to respond, showing no interest in prosecuting the case. Assessee challenged this before Tribunal, contending that in Form 35 he had clearly provided his email ID but CIT(A) never sent notices to that email. Instead, all notices were uploaded only on ITBA portal. He argued violation of principles of natural justice, claiming that land sold was agricultural land purchased in 2006 & sold in 2015, supported by purchase deed, sale deed, & affidavit of the buyer confirming agricultural character. He also disputed validity of reopening u/s 147 citing vague reasons & defective sanction u/s 151.
