SH. PURUSHOTAM SINGH,KARNAL vs. ITO, KARNAL

This appeal filed by the assessee is directed against the order dated 01.08.2016 of the CIT(A), Karnal relating to assessment year 2011-12.

The assessee in the grounds of appeal

Facts of the case, in brief, are that the assessee is an individual and filed his return of income on 04.08.2011 declaring total income of Rs.1,40,000/- and agricultural income of Rs8,50,000/-. The Assessing Officer during the course of assessment proceedings observed that the assessee has received interest on enhanced compensation of Rs.2,09,69,598/- and claimed the same as exempt u/s 10(37) claiming refund of Rs.20,35,582/- in the revised return of income. In the original return of income filed on 04.08.2011, the assessee had shown income from property dealings at Rs.1,40,000/- and agricultural income of Rs.8,50,000/-. During the assessment proceedings, the assessee filed the revised return showing income at Rs.3,27,961/- after claiming deduction u/s 80C at Rs.1,00,000/- and claimed refund of Rs.20,35,582/-. The assessee also filed explanation for revising his return stating that interest income received on savings account and also interest received on enhanced compensation claimed as exempt remained to be shown in the original return inadvertently. The Assessing Officer completed the assessment by rejecting the claim of exemption on the interest received on enhanced compensation and brought to tax 50% of the same which is related to this year. Accordingly, he made addition of Rs.1,04,98,479/-. The Assessing Officer further disallowed the claim of deduction u/s 80C at Rs.1,00,000/- in absence of any submission of proof of deduction.

In appeal, the ld. CIT(A) dismissed the appeal filed by the assessee due to non-submission of any document to support the claim of the assessee.

Aggrieved with such order of the ld. CIT(A), the assessee is in appeal before us.

We have considered the arguments advanced by the ld. DR and perused the material available on record. It is an admitted fact that the assessee did not appear before the ld. CIT(A) nor filed any written submission for which the ld. CIT(A) dismissed the appeal filed by the assessee in the ex-parte order passed by him. Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the ld. CIT(A) with the direction to give an opportunity to the assessee to substantiate his case. The ld. CIT(A) shall decide the issue as per law after giving due opportunity of being heard to the assessee. We hold and direct accordingly. The grounds raised