PARAS DAGA,BHOPAL vs. CIT(A), NFAC

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ITA 437/IND/2023Status: DisposedITAT Indore09 February 2024AY 2014-15Bench: SHRI VIJAY PAL RAO (Judicial Member), SHRI B.M. BIYANI (Accountant Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the ex-parte order of the CIT(A) and remanded the matter for fresh adjudication. The assessee was granted one more opportunity of hearing by the CIT(A).

What were the facts?

The assessee claimed exemption under Section 54F, which was disallowed by the AO and upheld by the CIT(A). The assessee could not appear before the CIT(A) due to the death of her husband during the Covid-19 pandemic and subsequent scheduling issues.

What were the issues?

Whether the disallowance of exemption under Section 54F was justified and whether the assessee was denied a proper opportunity of hearing.

Which sections of the Income-tax Act were involved?

Section 54F

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

For Respondent: Shri Ashish Porwal, Sr. DR
Hearing: 08.02.2024

This appeal by the Assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC) Delhi dated 15.09.2023 for A.Y. 2014-15. The assessee has raised following grounds of appeal:

“1. That the disallowance of Rs.42,52,000/- out of the total exemption claimed by the appellant u/s 54F, which was initially made by the learned AO and subsequently upheld by the learned CIT(A) be held to be bad and unjustified on the facts and in the circumstances of the case and be deleted.

ITANo.437/Ind/2023 Paras Daga

2.

That in the alternative and without prejudice to the grounds stated above, the disallowances made be held to be high, unreasonable and without basis and be suitably reduced.

3.

The appellant craves leave to add, amend or alter any Ground of Appeal

before or during the course of appellate proceedings."

2. None has appeared on behalf of the assessee when this appeal was called for hearing despite notice was duly served upon the assessee. However, the assessee has filed the written submission along with paper book on 06.02.2024. It is submitted that the CIT(A) has passed the impugned order ex-parte and thereby confirmed the disallowance of deduction u/s 54F against construction of residential house and purchase of plot/land. Further in the written submission the assessee has explained that the appeal of the assessee was not fixed for hearing by the CIT(A) until April 2021 and thereafter the appeal was fixed for hearing on 8th June 2022 and in between the husband of the assessee who was handling income tax matter expired on 1st May 2021 in the second wave of Covid-19 pandemic. Thus, the assesse has explained that due to these circumstances the assessee could not represent her case before the CIT(A).

3. On the other hand Ld. Dr has not seriously objected if the matter is remanded to the record of the CIT(A) for fresh adjudication after giving one more opportunity of hearing to the assessee.

4.

Accordingly having considered the written submission of the assessee as well as submission of the Ld. DR we find that the issue of deduction u/s 54F is required to be considered on merits after Page 2 of 3

ITANo.437/Ind/2023 Paras Daga giving opportunity of hearing to the assessee by the CIT(A). Hence, in the facts and circumstances of the case and in the interest of justice the impugned order passed by the CIT(A) in limine for non- prosecution is set aside and the matter is remanded to the record of the CIT(A) for fresh adjudication after giving one more opportunity of hearing to the assessee.

5.

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

Order pronounced in the open court on 09 .02.2024.

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