MANISH BHAI,KOLKAT vs. ACIT, CIRCLE - 22, KOLKATA, KOLKATA

This appeal by the assessee arises out of the order of the Learned Commissioner of Income Tax(Appeals)-17, Kolkata [in short the ld CIT(A)] in Appeal No. 36/CIT(A)- 17/Kol dated 22.02.2016 against the order passed by the ACIT, Circle-22, Kolkata [ in short the ld AO] under section 143(3) of the Income Tax Act, 1961 (in short “the Act”) dated 30.12.2011 for the Assessment Year 2009-10.

The assessee has raised several grounds of appeal:

The brief facts of this issue is that the assessee is an employee with Citi Bank NA and had electronically filed his return of income for the assessment year 2009-10 on 09.01.2010 declaring total income of Rs. 2,99,06,580/-. The assessee pursuant to his employment had to travel frequently to foreign countries and accordingly could not appear before the ld. AO and furnish the required details called for. Even in the assessment proceedings, the assessee’s father appeared from time to time and furnished certain details called for by the ld. AO. The ld. AO observed that the assessee had claimed an exemption towards House Rent Allowance (HRA) of Rs. 2,80,349/- for which no evidence in the form of payment of rent or rent agreement etc. were furnished. Accordingly, he proceeded to disallow the claim of exemption to HRA in the sum of Rs. 2,80,349/- and added back to the salary income of the assessee.

The ld. AO observed that the assessee owned four residential house properties and one commercial property in various parts of the country. The ld. AO observed that the assessee had declared only one flat situated at Flat No. 1304 at Ashok Tower, B, Parel Mumbai in the schedule of the house property in the return of income. He observed that the flat no. 1303, Ashok Tower, B, Parel Mumbai to the extent of 1795 sq. ft. and shop No. 50, Block-B, Axis Mall, IC, New Town, Kolkata to the extent of 972 sq. ft. were acquired by him in the fag end of the previous year relevant to the year under appeal. The property at flat 1B, 42/132, New Ballygunge Road, Kolkata-39 to the extent of 1200 sq. ft. was in assessee’s possession throughout the previous year wherein the assessee had declared the net annual value of Rs. 15020/-. Similarly, the annual letting 2

The assessee preferred an appeal against the following disallowances/additions made by the ld. AO before the Ld. CIT(A): a) Disallowance exemption of HRA Rs. 2,80,349/- b) Estimating income from house property Rs. 7,74,000/- c) Estimating income from other house property Rs. 6,34,639/-

The Ld. CIT(A) issued notices to the assessee at 03.11.2015, 03.12.2015 and 11.02.2016 on which date, none attended on behalf of the assessee nor any letter of adjournment preferred thereon. In the absence of basic details to be furnished from the end of the assessee and due to continuous non-cooperation of the assessee, the Ld. CIT(A) proceeded to hold that no inference is called for in the action of the ld. AO with regard to addition made towards income from house property and disallowance of claim of exemption towards HRA.

With regard to adoption of income from other sources of Rs. 6,34,639/- the Ld. CIT(A) observed that there cannot be any grievance for the assessee in this regard inasmuch as the said figure has been considered by the assessee himself in the return of Manish Bhai A.Yr. 2009-10 income hence this ground of appeal was also dismissed by the Ld. CIT(A). Aggrieved the assessee is in appeal before us.

We have heard the rival submissions. The ld. AR pleaded before us that the assessee had to travel abroad on several occasions and accordingly could not present himself on the scheduled dates of hearing before the Ld. CIT(A) or instruct either his father or any authorized representative. In support of this contentions, the ld. AR has placed copy of pass port of the assessee for the relevant period to prove that the assessee was away from the country during the relevant period.. He prayed for last opportunity before the Ld. CIT(A) for furnishing the relevant evidences in support of various contentions of the assessee. The ld. DR vehemently objected to the same and supported the order of the Ld. CIT(A). In the facts and circumstances of the case, we deem it fit and appropriate, in the interest of justice and fair play, to remand this issue to the file of the Ld. CIT(A) to decide the issues raised before him afresh in accordance with law on or before 28.02.2019. Needless to mention that the assessee be given reasonable opportunity of being heard. The assessee is also directed to co-operate with the ld CITA for expeditious disposal of the appeal and not to take adjournment except due to bonafide or exceptional circumstances.

In the result, the appeal of the assessee is allowed for statistical purposes.