SARABJIT SINGH,GHAZIABAD vs. ITO, WARD-2(4), GHAZIABAD

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ITA 1761/DEL/2018Status: DisposedITAT Delhi24 January 2022AY 2014-155 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that both the assessment order and the appellate proceedings were ex-parte. In the interest of justice, the Tribunal restored the appeal to the file of the CIT(A) with a direction to provide a reasonable opportunity of hearing to the assessee.

What were the facts?

The assessee's appeal was against an ex-parte order from the CIT(A). The assessee claimed that both lower authorities failed to provide a proper opportunity for hearing and passed orders without application of mind. Specifically, the authorities computed Short Term Capital Gain without considering the cost of acquisition.

What were the issues?

Whether the lower authorities erred by passing ex-parte orders without providing a proper opportunity of hearing and by computing capital gains without considering the cost of acquisition.

Which sections of the Income-tax Act were involved?

Section 45

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI ‘B’ BENCH,

Before: SHRI N.K. BILLAIYA, & SHRI KUL BHARAT

For Respondent: Shri Dheeraj Jain, Sr. DR
Hearing: 24.01.2022Pronounced: 24.01.2022

PER N.K. BILLAIYA, ACCOUNTANT MEMBER:-

1.

This appeal by the assessee is preferred against the order of the ld. CIT(A) – 2, Noida dated 05.12.2017 pertaining to Assessment Year 2014-15.

2. The grievances of the assessee read as under:

“1. That under the facts and circumstances of the case and in law, no proper opportunity of hearing has been allowed before both the lower authorities and the Assessment Order as well as CIT (A) appeal order passed are ex - parte, therefore, appellant has not been provided sufficient opportunity to present his case before both the lower authorities.

2.

That under the facts and circumstances of the case and in law, as no reasonable opportunity has been allowed by both the lower authorities, therefore, both the lower authorities have passed the order against principles of natural justice.

3. That under the facts and circumstances of the case and in law, both the orders passed by the Id. AO as well as by the Ld. CIT (A) are without application of mind as both of them have computed Short Term Capital Gain without giving any benefit of cost of acquisition, therefore, the Assessment Order as well as CIT (A) appeal order is illegal and un - sustainable.

4. That under the facts and circumstances of the case and in law, both the lower authorities have erred in law as well as on merits in making addition of Rs. 53,60,000/- U/s. 45 of the Act by treating total sale proceeds of property as Short Term Capital Gain without giving any benefit of cost of acquisition, therefore, the whole addition made is illegal, unsustainable and without application of mind.

5. That under the facts and circumstances of the case and in law, both the lower authorities have erred in law as well as on merits in making addition of Rs. 25,00,000/- U/s. 45 of the Act by treating total sale proceeds of property as Short Term Capital Gain without giving any benefit of cost of acquisition, therefore, the whole addition made is illegal, unsustainable and without application of mind.

6.

That under the facts and circumstances of the case and in law, both the lower authorities have erred in law as well as on merits in disallowing deduction of Rs. 1,43,151/- claimed under Chapter VI - A of the Act, the whole disallowance made is illegal, unsustainable and without application of mind.

3.

None appeared on behalf of the assessee and we decided to proceed exparte.

4.

A perusal of the orders of the authorities below show that the assessment order is exparte. Though one ld. counsel for the assessee appeared on behalf of the assessee but sought adjournment.

Thereafter, the appellate proceedings were concluded exparte.

Therefore, in the interest of justice and fair play, we deem it fit to restore this appeal to the file of the ld. CIT(A). The ld. CIT(A) is directed to allow reasonable and sufficient opportunity of hearing to the assessee to present the case with supporting evidences. The assessee is directed to avail this opportunity and file necessary documentary evidences before the ld. CIT(A).

5.

In the result, appeal of the assessee in is allowed for statistical purposes.

The order is pronounced in the open court on 24.01.2022.

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