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Income Tax Appellate Tribunal, “C(SMC
This appeal preferred by the assessee is against the order of the Ld. CIT(A)- 19, Kolkata dated 04.01.2018 for AY 2011-12.
The main grievance of the assessee is against the action of the Ld. CIT(A) in confirming the disallowance of HRA amounting to Rs.5,34,564/-. Brief facts of the case are that the assessee is an individual who has income from salary, house property and other sources of income. The AO noted after perusal of Form No. 16 given by M/s. S. C. Johnson Products Pvt. Ltd. which reflected that assessee was allowed the exemption of Rs.5,34,564/- u/s. 10(13A) of the Act on account of HRA. Since the assessee did not file copy of the rent agreement and the receipt of rent paid by the assessee, the claim of the assessee for exemption of Rs.5,34,564/- u/s. 10(13A) of HRA was not allowed. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A), who by a cryptic order has confirmed the order of the AO. Aggrieved, the assessee is before us.
Manoj Chakraborty, AY 2011-12 3. We have heard rival submissions and gone through the facts and circumstances of the case. The facts are not repeated for the sake of brevity. The AO has not allowed the claim of exemption of Rs.5,34,564/- u/s. 10(13A) of the Act on account of HRA for the reason that assessee failed to produce rent agreement and the copies of the receipt of the rent paid by the assessee. The Ld. AR submitted that since the assessee is presently employed at Singapore, the documents sought by the AO were not readily available during assessment proceedings, so the Ld. AR could not produce the same before the AO. Since documents are now in her possession, she pleaded that the matter may be remanded back to the AO, so that she would be able to produce the same before the AO. We note that only because the assessee failed to produce the rent agreement and receipt of the rent, the claim of the assessee was not accepted by the AO. Since the assessee was in Singapore and the documents could not be produced before the AO, the impugned addition was made and now since the Ld.AR is in possession of the documents sought by the AO, for the interest of justice and fair play, we set aside the order of Ld. CIT(A) and remand the matter back to the file of the AO for de novo adjudication of this issue after hearing the Ld. AR of the assessee. The assessee is at liberty to produce the documents to substantiate the claim. Therefore, this appeal of assessee is allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order is pronounced in the open court. Sd/- (A. T. Varkey) Judicial Member
Dated: 20th December, 2018 Jd.(Sr.P.S.)
Copy of the order forwarded to: 1 Appellant – Shri Manoj Chakraborty, 1st floor, 29A, Bentinck Street, Kolkata-700 001. 2 Respondent – ACIT, Circle-27, Kolkata. 3 CIT(A)-19, Kolkata. (sent through e-mail) CIT , Kolkata 4 DR, Kolkata Benches, Kolkata (sent through e-mail) 5