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Income Tax Appellate Tribunal, “B” BENCH : BANGALORE
Before: SHRI N.V. VASUDEVAN & SHRI JASON P. BOAZ
Date of hearing : 15-04-2019 Date of Pronouncement : 24-04-2019 O R D E R Per N V Vasudevan, Vice President :
This is an appeal by the assessee against the order dated 22-11-2017 of the Commissioner of Income Tax (Appeals)-Gulbarga, relating to Assessment Year 2011-12.
The assessee is a HUF. In the assessment concluded u/s. 143(3) r.w.s. 147 of the Income Tax Act, 1961 (Act), the Assessing Officer (AO) in his assessment order dt. 22-08-2014, brought to tax the interest on compensation for compulsory acquisition of the assessee’s land at Kandagal Village Tq: Bilagi, Bagalkot District. It was the plea of assessee that the interest on compensation awarded u/s.28 of the Land Acquisition Act, 1894 is akin to compensation and is therefore not chargeable to tax.
Aggrieved by the action of the AO, the assessee filed an appeal before the CIT(A). The appeal before the CIT(A) was fixed for hearing on the following dates:
Sl.No. Date of Notice Date of hearing 01 15.03.2017 23.03.2017 at 11.00 AM 02 09.10.2017 13.10.2017 at 03.00 PM 03 08.11.2017 16.11.2017 at 01.20 PM 3.1. According to CIT(A), on 16-11-2017, when the case was fixed for hearing, there was no response from the assessee that neither the assessee nor the AR of the assessee appeared before the CIT(A). In these circumstances, the CIT(A) dismissed the appeal of the assessee for non-prosecution.
3.2. Aggrieved by the order of CIT(A), the assessee filed an appeal before the Tribunal.
Ld. Counsel for the assessee has filed an affidavit of the assessee, wherein it has been stated that the notice dt. 08-11-2017, fixing the appeal of assessee for hearing on 16-11-2017 was not received by the assessee. The assessee has also mentioned in the affidavit that the impugned order was received by the assessee but the notice dt. 08-11-2017 was not received. In this regard, assessee also written a letter dt. 18-12-2017 to the CIT(A), mentioning the above facts.
We have heard the rival submissions and we are satisfied that the assessee was not offered a proper opportunity of being heard before the CIT(A). We therefore set aside the order of CIT(A) and remand the issues raised by the assessee in its appeal before the CIT(A) for considering the same afresh, after giving a proper opportunity of being heard to the assessee.
In the result, the appeal of assessee is treated as allowed for statistical purposes.
Pronounced in the open court on this 24th day of April, 2019