BHARATHI MUKTEVI,SECUNDERABAD vs. INCOME TAX OFFICER, WARD-12(1), HYDERABAD

The assessee has raised eight grounds in her appeal and they are extracted herein below for reference:-

Brief facts of the case are that the assessee is an individual filed her return of income for the A.Y. 2016-17 on 23/02/2017 admitting a total income of Rs. 27,96,140/-. The return was processed U/s. 143(1). Thereafter, the case was selected for scrutiny under CASS and the assessment was completed U/s. 143(3) of the Act on 5/12/2018 and the total income was determined at Rs. 55,52,140/- which includes certain additions viz., Rs. 2,06,000/- towards disallowance of improvement expenses and Rs. 25,50,000/- U/s. 50C of the Act. Aggrieved with the additions made by the Ld. A.O., assessee carried the

At the outset, the Ld. AR submitted before us stating that the Ld. CIT (A) has passed ex-parte order without providing proper opportunity to the assessee of being heard. It was further submitted that the Ld. A.O. had also not provided proper opportunity to the assessee to furnish the vouchers and bills to evidence the assessee’s claim in respect of cost of improvement of Rs. 8,23,950/-. Further, the Ld. AR submitted that the Ld. A.O. did not grant the indexation benefit to the assessee while computing the long-term capital gains. Therefore, the Ld AR pleaded that the matter may be remitted back to the file of the Ld. AO in order to consider the issues afresh and to provide one more opportunity to the assessee of being heard. Ld. DR, on the other hand, vehemently opposed to the submissions of the Ld. AR and argued that sufficient opportunities had been provided to the assessee by the Ld.AO however the assessee could not produce cogent evidence to substantiate her claim. It was further submitted that when the matter came up before the Ld. CIT(A), neither the assessee nor her counsel appeared before the Ld. CIT (A) to present her case. Therefore, the Ld. Revenue Authorities had no other option but to pass orders based on the materials available

We have heard the rival submissions and carefully perused the materials on record. On examining the facts of the case, We find merit in the submissions of the Ld. DR. It appears that the Ld. CIT (A) had posted the case on several occasions. However, none appeared on behalf of the assessee before the CIT(A) on the dates of hearing. Therefore, the Ld. CIT (A) was left with no other option except to adjudicate the appeal ex-parte. In this situation, We do not find much strength in the arguments advanced by the ld. AR. However, considering the issues involved in the appeal as well as the prayer of the Ld. AR, in the interest of justice, We hereby remit the entire matter back to the file of Ld. AO in order to consider the appeal afresh and decide the matter de-novo in accordance with law and merit providing proper opportunity to the assessee of being heard. At the same breath, We also hereby caution the assessee and her counsel to promptly co-operate before the Ld. Revenue Authorities in their proceedings failing which the Ld. Revenue Authorities shall be at liberty to pass appropriate orders in accordance with law and merits based on the materials on the record. It is ordered accordingly.

In the result, appeal filed by the assessee is allowed for statistical purposes as indicated hereinabove.