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Facts
The assessee's appeal was against an order confirming an assessment completed u/s 153C r.w.s 144 of the Act for AY 2015-16. The assessment involved capital gains on the sale of agricultural land. The assessee had failed to appear before the lower authorities.
Held
The Tribunal condoned the delay in filing the appeal. While acknowledging the assessee's failure to appear, the Tribunal restored the appeal to the file of the Ld. CIT(A) for a fresh hearing on merits, citing the principle of natural justice.
Key Issues
Whether the assessee is entitled to a fresh opportunity of hearing before the Ld. CIT(A) despite previous non-appearances, considering principles of natural justice?
Sections Cited
153C, 144, 282
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL & HON’BLE SHRI MANU KUMAR GIRI
(िनधा�रणवष� / Assessment Year: 2015-2016) Basheer Zeenath, Vs. The Deputy Commissioner of 52-A/2, Khadar Street, Income Tax, Rasipuram, Central Circle -1, Namakkal 637 408. Trichy [PAN:ABJPZ 5166G] (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/ Appellant by : Shri. T.S. Lakshmi Venkatraman, FCA ��यथ� क� ओर से /Respondent by : Shri R. Clement Ramesh Kumar, CIT. सुनवाई क� तार�ख/Date of Hearing : 26.02.2025 घोषणा क� तार�ख /Date of Pronouncement : 25.03.2025 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member)
This appeal filed by the assessee is directed against the order of the Ld. Commissioner of Income Tax(Appeals) Chennai-19 [CIT(A)] dated 29.05.2024 for Assessment Year 2015-16. 2. The registry has noted delay of 145 days in filing the appeal. Considering the period of delay and reasons stated in the condonation petition which is supported by an affidavit of the assessee, we condone the delay and admit the appeal for adjudication.
Brief facts of the case are that the assessment was completed u/s 153C r.w.s 144 of the Act on a total income of Rs.7,45,050/- resulting in demand of Rs.1,92,560/-. The only issue involved in the above appeal is capital gain on sale of agricultural land amounting to Rs.32,25,000/-. The assessee pleaded that the aforesaid amount does not attract Capital Gain to Income Tax. Assessee further challenged the order of assessment u/s 153C r.w.s 144 of the Act before the ld.CIT(A) who dismissed the appeal of the assessee on merits as the assessee has not responded to notices issued for hearing. Aggrieved, assessee is in appeal before us.
Before the ld. Counsel for assessee submitted that the AO has not given proper notice u/s 282 of the Act to file evidence and documents to substantiate her explanation. The ld.DR stated that the assessee is habitual defaulter in appearing before the AO hence no lenient view is to be taken in this case and prayed for dismissal of appeal.
Though we concur with the submissions of Ld. Sr. DR however, keeping in mind the principle of natural justice and grant another opportunity of hearing to the assessee. We also find that assessee has not represented before the ld.CIT(A) despite notices. Accordingly, the impugned order is set aside and the appeal is restored back to the file of Ld. CIT(A) for fresh appeal hearing on merits after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence, sale deeds relating to sale of agricultural land and documents, if any, forthwith without any fail, failing which Ld. CIT(A) shall be at liberty to proceed with the appeal proceedings on merits as per law. 6. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 25th day of March, 2025 at Chennai.