2024 (3) TMI 474 - AT - Income Tax

Addition of income u/s 56(2)(x)(b)(B) - under valuation of stamp duty value on purchase consideration of the property u/s 50C - difference between the stamp value and the purchase value - HELD THAT - Today is the 11th time of hearing of the above appeal. None appeared on behalf of the assessee and no authorization given to appear on behalf of the assessee. Even in the previous hearings, adjournment requests were sent from the email id of the Chartered Accountant in the name of the assessee, stating his chartered accountant is hospitalized but without enclosing any medical records. Even in the last two hearings before this Tribunal, None appeared on behalf of the assessee. This clearly shows that the assessee is not interested in pursuing the above appeal. Therefore, with the assistant of Ld. Sr. D.R., we are inclined to dispose of this appeal. There is no material on record in support of the Grounds raised by the assessee, namely copy of the Sale Deed and Civil Notice on the dispute pending before High Court of Gujarat, Bank Statements, etc. In the absence of the same and the assessee being habitual non-appearance before the First Appellate Authority as well as before this Tribunal, we have no other option than to confirm the addition made by the Lower Authorities. Appeal filed by the Assessee is dismissed for non-prosecution.

Summary

Issues involved:
The appeal against the ex parte appellate order passed by the Commissioner of Income Tax (Appeals) related to the assessment order under section 143(3) of the Income Tax Act, 1961 for the Assessment Year 2018-19.

Assessment Proceedings and Dispute:
The assessee, an individual deriving income from various sources, filed a return for the Asst. Year 2018-19. The scrutiny assessment was initiated, focusing on the investment in immovable property and invoking section 50C valuation. The assessee explained the purchase details and the ongoing dispute with the sellers, emphasizing that section 50C should not apply due to the unresolved transaction. However, the Assessing Officer disregarded the explanation and added the differential amount as the assessee's income, demanding tax accordingly.

Grounds of Appeal and NFAC Decision:
The aggrieved assessee appealed to the National Faceless Appeal Centre, challenging the addition made under section 50C. The appeal highlighted discrepancies in the valuation and the ongoing dispute affecting the property's transfer. Despite multiple notices, the assessee failed to provide submissions, leading to the confirmation of the addition by the NFAC. The appeal was dismissed based on the discrepancy between the declared payment and the purchase deed's details, upholding the Assessing Officer's decision.

Appellate Tribunal Decision:
The assessee further appealed the NFAC decision, arguing against the addition under section 50C due to the unresolved ownership transfer. However, the repeated non-appearance of the assessee during hearings and the lack of supporting documents led the Tribunal to dismiss the appeal for non-prosecution. The Tribunal noted the absence of crucial evidence and the assessee's consistent non-engagement in the proceedings, ultimately affirming the lower authorities' decision.

Conclusion:
The appeal filed by the Assessee was dismissed by the Appellate Tribunal due to non-prosecution, emphasizing the lack of supporting materials and the assessee's persistent non-appearance throughout the proceedings. The Tribunal upheld the addition made under section 50C, considering the discrepancies in the payment details and the unresolved dispute regarding the property ownership transfer.