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Facts
The assessee appealed against a reassessment order confirmed by the CIT(A), which included an addition for interest on enhanced compensation and interest under sections 234A, B, and C. The CIT(A) dismissed the assessee's appeal summarily for non-attendance without adjudicating on the merits of the issues raised, including the validity of reassessment and entitlement to a deduction under section 57(iv).
Held
The Tribunal found that the CIT(A) erred in dismissing the appeal without considering the merits. It held that granting an opportunity of hearing to the assessee would not prejudice the revenue. Consequently, the matter was remanded to the CIT(A) for a fresh adjudication on merits, with the department retaining the liberty to proceed with non-compliance actions if warranted.
Key Issues
Validity of reassessment under sections 144/147/151; confirmation of addition of interest on enhanced compensation; non-allowance of deduction under section 57(iv); and charging of interest under sections 234A, 234B, and 234C, and whether CIT(A) erred in dismissing the appeal for non-attendance without merits.
Sections Cited
144, 147, 151, 57(iv), 234A, 234B, 234C
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Dr. B. R. R. Kumar
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘SMC’, NEW DELHI Before Dr. B. R. R. Kumar, Accountant Member : Asstt. Year : 2015-16 Aasmeen, Vs. Income Tax Officer, C/o Sanjeev Anand & Associates, Ward-1(1), 136, Navyug Market, Ghaziabad, Noida-201301 Uttar Pradesh-201001 (APPELLANT) (RESPONDENT) PAN No. BOYPA6675L Assessee by : Sh. Sumit Gupta, CA Revenue by : Sh. Om Parkash, Sr. DR Date of Hearing: 28.03.2024 Date of Pronouncement: 02.04.2024 ORDER The present appeal has been filed by the assessee against the order of National Faceless Appeal Centre (NFAC), Delhi dated 27.12.2023.
Following grounds have been raised by the assessee:
“1 That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in framing the impugned reassessment order u/s 144/147 and that too without assuming jurisdiction as per law and without complying the mandatory conditions u/s 147 to 151 as envisaged under the Income Tax Act, 1961. 2 That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the addition of Rs. 44,43,550/- as interest on enhanced compensation by recording incorrect facts and findings and without observing the principles of natural justice.
3. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the addition of Rs. 44,43,550/- without allowing deduction u/s 57(iv) of the I. T. Act, 1961 equal to 50% of interest on compensation. 2 Aasmeen 4. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the addition of Rs. 44,43,550/- when interest on enhanced compensation is capital receipt.
That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts of the case in not reversing the action of Ld. AO in charging interest u/s 234A, 234B and 234C of the Act.”
On going through the record, it is found that the ld. CIT(A) has summarily confirmed the order of the Assessing Officer and dismissed the appeal of the assessee without adjudicating the issue on merits owing to the failure of the assessee to attend the hearings. It was pleaded that given an opportunity, the assessee would comply to the notices issued by the revenue. I find that no prejudice would be caused to the revenue, if an opportunity of being heard given to the assessee to file her submissions. Hence, the matter is being remanded to the file of the ld. CIT(A) to adjudicate the issue on merits. The department would be at liberty to initiate proceedings in accordance with the provisions of Income Tax Act for non- compliance to the notices, if any.