ANITA KUMARAN,CHENNAI vs. ITO, NCC-10(1), CHENNAI

The assessee is an individual and filed her return of income declaring total income of Rs. 5,35,49,070/-. The A.O in the assessment order has made addition on Long Term Capital Gain (LTCG) of Rs. 20,84,30,351/- and addition u/s. 69C of the Act in respect of foreign expenditure of Rs. 7,703/-. Aggrieved by the same, the assessee preferred an appeal before the Ld. CIT(A). However, the Ld. CIT(A) dismissed the appeal ex-parte as the assessee has not responded to three notices issued.

The Ld. Authorized Representative (A.R.) of the assessee submitted that the Ld. CIT(A) passed the order ex-parte without affording sufficient opportunity of being heard. It was further submitted that since huge additions have been made without hearing the assessee, in the interest of justice, one more opportunity may be granted to substantiate her case.

On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities.

5. We have heard the rival submissions, and perused the materials available on record. On perusal of the order of the Ld. CIT(A), we find that the Ld. CIT(A) has dismissed the appeal ex-parte as the assessee has not complied with the three notices issued. Considering the submission of the assessee, and in the interests of natural justice, we are of the view that the assessee be provided with another opportunity of hearing to substantiate her case before the Ld. CIT(A) subject to payment of costs of Rs.10,000/-. The same shall be paid by the assessee to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within a period of one month from the date of receipt of this order and produce the receipt before the Ld. CIT(A).

Accordingly, we set aside the order of the Ld. CIT(A) and remit the matter back to his file for fresh adjudication in accordance with law.

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