JOHN SAMVEL RAJASINGH,CHENNAI vs. ACIT, NCC - 13 (1), CHENNAI

This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals) 7, Chennai, dated 19.03.2019 relevant to the assessment year 2013-14. Besides challenging various issues on merits, the ld. Counsel for the assessee has mainly challenged the ex-parte order passed by the ld. CIT(A).

Brief facts of the case are that the assessee has filed the return of income for the assessment year 2013-14 on 30.11.2013 declaring total income of ₹.37,33,200/-, which was processed under section 143(1) of the Act [“Act” in short]. The case of the assessee was selected for scrutiny and against the statutory notices; the assessee furnished the details called for. After examining the details furnished by the assessee as well as considering the submissions, the assessment under section 143(3) of the Act was completed by determining the total income of the assessee at ₹.1,21,33,200/- after making addition towards long term capital gains of ₹.84 lakhs. The assessee carried the matter in appeal before the ld. CIT(A). Since there was no representation from assessee’s side, the ld. CIT(A) dismissed the appeal of the assessee.

On being aggrieved, the assessee is in appeal before the Tribunal. The ld. Counsel for the assessee has submitted that the ld. CIT(A) has not adjudicated the issue raised in the appeal on merits by considering the submissions made before him and prayed for suitable directions for adjudicating the issue on merits after giving one more opportunity of being heard to the assessee for presenting its case before the ld. CIT(A). On the other hand, the ld. DR did not seriously objected to the submissions of the ld. Counsel.

We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. Against the addition on account of long term capital gains under section 54 of the Act, the assessee preferred further appeal before the ld. CIT(A). On perusal of the appellate order, we find that there were no response to the notices fixing for hearing on 01.11.2018 & 04.02.2019. Even though the assessee acknowledged the receipt of notice fixing the hearing on 07.03.2019, the assessee has not represented his case before the ld. CIT(A). Since there were no explanatory notes or other documents to rebut the findings of the Assessing Officer, the ld. CIT(A) dismissed the appeal filed by the assessee. However, it was the contention of the assessee that the ld. CIT(A) has not adjudicated the issue on merits by considering the submissions made by the assessee. Thus, to meet the ends of natural justice, we set aside the exparte order of the ld. CIT(A) and direct him to decide the issue on merits in accordance with law after considering the material evidences and other details as may be submitted by the assessee before the ld. CIT(A) by giving one more opportunity of being heard to the assessee. The assessee is also directed to furnish complete details before the ld. CIT(A) for adjudicating the issue.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the 27th November, 2019 in Chennai.