2019 (8) TMI 638

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.....) 2008-09. 2. All the grounds of appeal are related to the issue of reopening of assessment and the addition made by the Assessing Officer (AO) under the head 'capital gains'. In this case, the assessee has not filed the return of income. Hence, the AO having reason to believe that the income charged to tax has escaped assessment, issued the notice u/s 148 of the Income Tax Act, 1961 (in short 'Act') and taken up the case for scrutiny. The AO found that the assessee is a non-resident and sold the following properties during the financial year 2007-08 relevant to the A.Y. 2008-09. 1. Area admeasuring of 495 Sq. Yards out of the site of 826 Sq.Yards situated at Kurmannapalem, Visakhapatnam sold to M/s, Vanadurga Constructions, Pr....

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....ment u/s 144 Act r.w.s. 147 of the Act i.e. assessments made under 'best judgement'. 3. Against the order of the AO, the assessee went on appeal before the CIT(A) and before the CIT(A) also the assessee did not respond to the notices issued on 04.10.2017, 17.10.2017, 30.10.2018 and 03.07.2016. Therefore, the Ld.CIT(A) decided the appeal ex-parte and dismissed the appeal in absentia. 4. Aggrieved by the order of the Ld.CIT(A), the assessee filed appeal before this Tribunal and raising as many as five grounds. 5. Ground No.1 and 5 are general in nature which does not require specific adjudication. 6. Ground No.2 is related to deciding the appeal by the CIT(A) ex-parte without giving sufficient opportunity. 6.1. We have gone ....

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....nt, accordingly issued notice u/s 148. Hence, we do not find any merit in the ground raised by the assessee regarding validity of issue of notice u/s 148, hence, this ground is dismissed. 8. Ground No.4 is related to the addition made by the AO of Rs. 43,51,343/- under the head 'short term capital gains' and Rs. 5,83,990 /- under the head 'long term capital gains'. The assessee contended that the additions made by the AO do not attract capital gains tax. During the appeal hearing, the Ld.AR relied on the grounds of appeal with regard to sale of residential house situated at Madhavadhara. We have gone through the copy of the sale deed placed before us. The assessee also did not place any material with regard to the sale of the flat locate....

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....ot respond before the CIT(A) also. Hence, the CIT(A) also passed the ex-parte assessment, hence no purpose would be served, even if the case is remitted back to the AO. Similarly, the Ld.DR argued that the assessee has entered into development agreement, agreement of sale coupled with power of attorney, hence, it is to be treated as complete sale, accordingly argued that the AO rightly assessed the capital gains and no interference is called for. 11. We have heard both the parties and perused the material placed on record. We have gone through the sale agreement placed before us by the assessee in page No.10-21 of the paper book. The assessee had entered into agreement to sale coupled with power of attorney for a sum of Rs. 57,33,000/- o....