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Facts
The assessee filed an appeal against an order pertaining to AY 2016-17. The assessee's grievance was that materials on record were not properly appreciated, violating principles of natural justice during reassessment proceedings.
Held
The Tribunal noted that the Assessing Officer passed an order u/s 144 without granting adequate opportunity of hearing. In the interest of natural justice, the issue of exemption u/s 54 was remitted back to the Assessing Officer.
Key Issues
Whether principles of natural justice were violated by the AO in not granting adequate opportunity of hearing for the claim of exemption u/s 54.
Sections Cited
54, 147, 144, 144B
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Income Tax Appellate Tribunal, DELHI BENCH “F”: NEW DELHI
Before: SHRI SATBEER SINGH GODARA & SHRI NAVEEN CHANDRA
We have heard the rival submissions and have perused the 6. material available on record. We find that the issue involved in the case for adjudication is exemption claimed u/s 54 of the Act. The AO has passed an order against the assessee u/s 144. We are of the considered view that the AO ought to have granted adequate opportunity of hearing. We, therefore, of the considered view that in the interest of natural justice, the issue of exemption u/s 54 be remitted back to the file of the AO. The AO is directed to afford three effective opportunities to the assessee and thereafter, examine the materials evidenced on record and adjudicate the issue afresh. The assessee is alsod directed to avail the opportunities and furnish requisite documents/evidence as required by the AO. Ground of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 05/02/2026.