Babubhai Jesangbhai Marand Vs Jurisdiction AO – ITO (ITAT Rajkot)
The appeal pertains to Assessment Year 2012–13 and arises from an order passed by the Commissioner of Income-tax (Appeals) [CIT(A)] under Section 250 of the Income Tax Act, 1961, which upheld the assessment made by the Assessing Officer (AO) under Sections 144 read with 147. The assessee challenged the CIT(A)’s decision primarily on the ground that the appeal was dismissed as time-barred without properly considering the reasons for delay, despite submission of an affidavit seeking condonation.
The assessee, an individual engaged in agricultural activities, had not filed a return of income for the relevant year on the belief that his income, being agricultural, was exempt. During the year, he sold agricultural land for Rs. 60,46,000. Based on information received through AIR, the AO reopened the case by issuing a notice under Section 148. Multiple statutory notices were issued, but the assessee did not respond, citing lack of familiarity with tax laws and a bona fide belief that no taxable income arose. Consequently, the AO proceeded ex parte under Section 144 and computed capital gains of Rs. 54,72,453 after allowing indexed cost deduction, raising a tax demand.
The assessee later filed an appeal before the CIT(A) along with an application for condonation of delay supported by an affidavit. However, the CIT(A) dismissed the appeal in limine under Section 249(3), citing failure to justify the delay, without adjudicating the merits of the case.
