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Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: SHRI N.R.S. GANESAN & SHRI S. JAYARAMAN
आदेश /O R D E R
PER N.R.S. GANESAN, JUDICIAL MEMBER:
This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals) -1, Trichy, dated 20.03.2019 and pertains to assessment year 2008-09.
Shri M. Karunakaran, the Ld.counsel for the assessee, submitted that the Assessing Officer on the basis of the information said to be received, found that the assessee sold a property for a total consideration of ₹10,00,000/- as against the guideline value of ₹18,00,000/-. According to the Ld. counsel, the assessee has not filed any return of income. The Assessing Officer completed the assessment under Section 144 of the Income-tax Act, 1961 (in short 'the Act') denying exemption claimed by the assessee under Section 54 of the Act. The CIT(Appeals) also confirmed the order of assessment without allowing the claim of interest on the loan taken and the cost of improvement. According to the Ld. counsel, the CIT(Appeals) confirmed the order of assessment on the ground that no material is available on record. Since the assessment was completed under Section 144 of the Act, according to the Ld. counsel, the assessee could not file necessary details, therefore, an opportunity may be granted to the assessee.
On the contrary, Shri AR.V. Sreenivasan, the Ld. Departmental Representative, submitted that even after sufficient opportunity, the assessee has not filed necessary details, therefore, the Assessing Officer was forced to complete the assessment under Section 144 of the Act.
Since the assessee has not filed any return of income and details with regard to interest payment and borrowal of loan, according to the Ld. D.R., the CIT(Appeals) has confirmed the order of assessment.
Having heard the Ld.counsel for the assessee and the Ld. D.R., we have gone through the orders of both the authorities below. The assessee appears to have claimed interest on loan and cost of improvement while computing the capital gains apart from the claim of deduction under Section 54F of the Act. In fact, the assessee did not appear before the assessing officer and furnish necessary details also.
Therefore, this Tribunal is of the considered opinion that giving one more opportunity to the assessee for furnishing necessary details with regard to loan borrowed and claim of deduction under Section 54F of the Act may not prejudice the interest of Revenue in any way. The very object of the scheme of the Income-tax Act is to compute the taxable income as
per the provisions of the Act. Therefore, giving one more opportunity to the assessee would definitely promote the cause of justice. Accordingly, orders of both the authorities below are set aside and the entire issue raised by the assessee is remitted back to the file of the Assessing Officer. The Assessing Officer shall re-examine the matter in the light of the material that may be filed by the assessee and thereafter decide the issue afresh in accordance with law, after giving a reasonable opportunity to the assessee.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the court on 1st August, 2019 at Chennai.