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Facts
The assessee appealed against the CIT(A)'s order for AY 2011-12, which upheld an assessment order passed under Section 143(3) r.w. Section 147. The CIT(A) confirmed capital gain at Rs. 1,05,06,590/-, disallowing the assessee's claim of long-term capital gain of Rs. 2,38,408/- after exemption under Section 54, and dismissed the appeal *in limine* without addressing its merits.
Held
The Tribunal found that the CIT(A) erred by dismissing the appeal *in limine* without deciding on its merits, despite notices being served to the assessee. The Tribunal deemed it fit to restore the issues to the file of the CIT(A) for a fresh decision on merits after affording the assessee a reasonable and adequate opportunity of being heard.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal *in limine* without adjudicating on the merits of the assessee's capital gain assessment and Section 54 exemption claim.
Sections Cited
143(3), 147, 54
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Income Tax Appellate Tribunal, “G” BENCH, MUMBAI
Before: SHRI SAKTIJIT DEY, HON’BLE & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE
O R D E R
PER NARENDRA KUMAR BILLAIYA, AM:
This appeal by the assessee is preferred against the order dt. 25/04/2023 by NFAC, Delhi [hereinafter “the ld. CIT(A)”] pertaining to AY 2011-12.
The grievance of the assessee reads as under:- “1. The CIT(A) has erred in upholding the assessment order by summarily disposing of the appeal without going into the merits of the claims made by the assessee. 2. The CIT(A) has erred in upholding the assessment order passed u/s 143(3) r.w.s. 147 of the Act, which is illegal, bad in law and in violation of principles of natural justice. 3. The CIT(A) has erred in confirming the assessment of capital gain at Rs. 1,05,06,590/- being gross sales proceeds of properties instead of long term capital gain offered to tax at Rs. 2,38,408/- after claiming exemption u/s. 54 of the Act.
2 4. The CIT(A) has erred in disallowing the claim made u/s. 54 of the Act and not holding that the sale of properties resulted into a long-term capital gain to the assessee. The appellant craves leave to add to, amend, alter or delete all or any of the foregoing grounds of appeal.”