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Facts
The assessee's appeal relates to A.Y. 2011-12, challenging the order that upheld reassessment proceedings and additions on account of bogus long-term capital gains. A key ground raised was the denial of a personal hearing by the appellate authority.
Held
The Tribunal held that the assessee deserves an opportunity of personal hearing, considering the principles of natural justice. The matter was restored to the CIT(A) for a fresh decision after providing a reasonable opportunity of hearing.
Key Issues
Whether the appellate order is invalid due to denial of personal hearing, and if the additions on account of bogus long-term capital gains are sustainable.
Sections Cited
250, 143(3), 68, 250(6)
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Income Tax Appellate Tribunal, PUNE BENCHES “SMC”, PUNE
Before: DR.MANISH BORAD & MS. ASTHA CHANDRA
आदेश / ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned appeal at the instance of assessee relating to A.Y. 2011-12 is directed against the order dated 28.03.2024 framed by Addl/JCIT(A)-1, Kolkata u/s.250 of the Income-tax Act, 1961 (in short ‘the Act’) arising out of Assessment Order dated 29.12.2018 passed u/s.143(3) of the Act.
On perusal of the grounds, we notice that apart from raising the grounds challenging the validity of reassessment proceedings, and the additions made u/s.68 of the Act on account of bogus long term capital gains of Rs.10,80,352/- from sale of Equity shares of DMC Education Ltd. and VAS Infrastructure Ltd., the assessee has also raised ground No.2.1 stating that there is denial of opportunity of personal hearing which reads as follows :
“2. Denial of opportunity of personal hearing: 2.1. On the facts and in the circumstances of the case and without prejudice to other grounds, the appellate order passed by Ld. CIT-Appeal is invalid and bad-in-law since the same was passed without providing an opportunity of personal hearing despite the same being specifically requested by the Appellant and therefore, the order passed by Ld. CIT-Appeal u/s 250 may please be set aside.”
Though the assessee has made submissions on various issued on merits as well as legal issues and also filed detailed written submissions, we find that considering the principles of natural justice, assessee deserves an opportunity of personal hearing through virtual mode/physical mode as provided under the Act which has been requested by the assessee. We also notice that in the impugned order ld. CIT(A) while dismissing the appeal of the assessee has stated that appellant has neither filed any satisfactory explanation on the issue nor he has filed any documentary evidence in this regard during the appellate proceedings. Considering this fact, we deem it appropriate to restore the issues raised in the instant appeal on legal as well quantum addition to the file of ld.CIT(A) before whom assessee shall furnish all the requisite details which have been placed in the paper book filed before this Tribunal and ld.CIT(A) shall give reasonable opportunity of hearing and after considering the submissions of the assessee shall decide in accordance with law by passing a speaking order as contemplated u/s.250(6) of the Act. Effective grounds of appeal raised are allowed for statistical purposes.
Order pronounced on this 02nd day of May, 2025.