Shri Arsi Masri Mori Vs. The I TO, Ward-4, Verval

Parties Involved

Facts Summary

The appellant, an individual engaged in agriculture activities, was assessed to tax by the Income-tax Officer, Ward-4, Veraval. The appellant derived income from agriculture and interest income, which was below the maximum amount chargeable to tax. Consequently, no return of income was filed. The appellant and nine other persons jointly purchased an agriculture land, with the appellant's share being 10%. The Assessing Officer (AO) alleged that the property belonged to the appellant and made an addition of Rs. 2,66,29,025/- under section 50C of the Income Tax Act. The assessment was finalized ex-parte, and the appellant filed an appeal before the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, which was dismissed due to a deficiency in the appeal form. The appellant then filed an appeal before the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the Commissioner of Income Tax (Appeals)/NFAC erred in dismissing the appeal ex-parte.
• 2. Whether the appellant was required to pay advance tax under section 249(4)(b) of the Income Tax Act.
• 3. Whether the addition made by the AO under section 50C of the Income Tax Act was justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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