Somabhai Mangabhai Bhoi vs. The ITO

Parties Involved

Facts Summary

The assessee, Somabhai Mangabhai Bhoi, had sold two immovable properties during the year for substantial sums but had not filed any return of income for the impugned year i.e. A.Y. 2018-19. The Assessing Officer (AO) reopened the case of the assessee and framed assessment on the assessee ex parte, adding the entire amount as income of the assessee under the head 'long term capital gains'. The assessee filed an appeal before the Commissioner of Income Tax (Appeals) (CIT(A)), but in the absence of any representation on behalf of the assessee, the CIT(A) upheld the order of the AO. The assessee pleaded that he was uneducated, illiterate, and living in a rural area, and therefore, did not understand the notices issued under sections 148 & 142(1) of the Income Tax Act, 1961, and was unable to participate in the assessment and appellate proceedings.…

Legal Issues

• 1. Whether the delay in filing the appeal should be condoned?
• 2. Whether the capital gain earned by the assessee on the sale of land is liable to tax?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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