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Facts
The assessee appealed against the CIT(A)'s order which confirmed the AO's action of not granting deduction for cost of acquisition and indexation from the sale price of land while calculating Long Term Capital Gain. The assessee had failed to provide necessary details during assessment and first appellate proceedings.
Held
The Tribunal acknowledged the assessee's failure to furnish details despite opportunities. However, in the interest of justice, the Tribunal set aside the CIT(A)'s order and restored the matter to the Assessing Officer for de novo assessment, granting the assessee another opportunity to furnish all relevant details.
Key Issues
Whether the assessee was denied adequate opportunity of being heard and whether the deduction for cost of acquisition and indexation should be granted for calculating Long Term Capital Gain on the sale of land.
Sections Cited
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Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD
Before: DR. B.R.R. KUMAR, VICE-Ms SUCHITRA KAMBLE
O R D E R PER SUCHITRA KAMBLE, JUDICIAL MEMBER :-
The captioned appeal has been filed by the assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, vide order dated 03.02.2025 relevant to the Assessment Year 2012-13. 2. The assessee has raised the following grounds of appeal:
The learned CIT(A) erred in law and on facts in not granting the adequate opportunity of being 1 heard to the appellant during the course of appellate proceedings, such opportunity should have been granted in the interest of justice. Asst. Year : 2012-13 - 2–
The learned AO erred in not granting the deduction of cost of acquisition and indexation thereof from the sale price of the land while calculating the Long Term Capital Gain and learned CIT(A) erred in confirming such action of AO, such cost of acquisition and indexation thereof is requested to be granted. Additional Ground The learned AO erred in not granting the deduction of cost of acquisition and indexation thereof from the sale price of the land while calculating the Long Term Capital Gain and learned CIT(A) erred in confirming such action of AO, such cost of acquisition and indexation thereof is requested to be granted. Your appellant prays for leave to add, to alter and/or to amend the above ground before the final hearing of appeal.
On perusal of the record, we find that the assessee was granted sufficient opportunities of hearing to furnish details, clarifications, and explanations to substantiate the “Capital Gains” arising from the sale of land in which assessee’s share was 16.66%. However, assessee failed to furnish any requisite details or explanations before the Ld.CIT(A). Consequently, the Ld. CIT(A) upheld the action of the Assessing Officer and dismissed the appeal. We also find that the assessee even failed to submit any details/supporting evidence regarding sale of land before the Assessing Officer during the course of assessment proceedings. The Ld. Counsel for the assessee prayed that, given an opportunity, all the details/clarification/explanation would be provided to the revenue authorities. Hence, in the interest of justice, we set aside the order of the Ld. CIT(A) and restore the matter back to the file of the Assessing Officer for de novo assessment, after affording an opportunity of being heard to the assessee. The assessee shall submit all the relevant bank Asst. Year : 2012-13 - 3– statement /submission/document/evidence before the Assessing Officer and comply with the notices issued by the revenue authorities without seeking any unnecessary adjournments.
In the result, the appeal of the assessee is allowed for statistical purposes.