SASIKALA,CHENNAI vs. INCOME TAX OFFICER, NON CORPORATE WARD
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Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI
Before: HON’BLE MR. JUSTICE (RETD.) CHANDRAKANT VASANT BHADANG & SHRI MANJUNATHA.G, HON’BLE
आदेश / O R D E R PER MANJUNATHA.G, AM:
This appeal filed by the assessee is directed against the order of
the Commissioner of Income Tax (Appeals), Income Tax Department,
National Faceless Appeal Centre (NFAC), Delhi, dated 25.10.2023, and
pertains to assessment year 2020-21.
The brief facts of the case are that the assessee is an individual
filed his return of income for AY 2020-21 on 31.03.2021 declaring total
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income of Rs.6,81,980/-. The case was selected for scrutiny to verify
large deductions/exemptions claimed under the head ‘long term capital
gains’. During the course of assessment proceedings, the AO provided
number of opportunities to the assessee, but the assessee neither
appeared nor furnished any details. Therefore, the AO completed
assessment u/s.143(3) r.w.s.144B of the Income Tax Act, 1961 (in short
“the Act") on 26.09.2022 and rejected deduction claimed u/s.54F of the
Act.
Being aggrieved by the assessment order, the assessee preferred
an appeal before the Ld.CIT(A). During the course of appellate
proceedings, the Ld.CIT(A) posted the case for hearing on three
occasions, but no compliance from the assessee. Therefore, the
Ld.CIT(A) disposed off appeal filed by the assessee ex parte for non-
prosecution and upheld additions made by the AO towards disallowance
of deductions claimed u/s.54F of the Act. Aggrieved by the order of the
Ld.CIT(A), the assessee is in appeal before us.
The Ld.Counsel for the assessee, Shri S. Seetharaman, CA,
submitted that although, the assessee did not respond to first two dates
of hearing, but when the appeal was posted on the third time on
25.10.2023, the assessee has filed a letter dated 25.10.2023 and sought
for adjournment on medical grounds. However, the Ld.CIT(A) without
considering the letter filed by the assessee seeking for adjournment of
ITA No.1334/Chny/2023 :: 3 ::
hearing, passed order on 25.10.2023 and dismissed the appeal on
technical grounds. Therefore, he submitted that one more opportunity
of hearing may be given to the assessee to go to Ld.CIT(A) to explain
his case.
The Ld.DR present for the Revenue, fairly agreed that the appeal
may be set aside to the file of the Ld.CIT(A) to give one more opportunity
of hearing to the assessee to explain his case.
We have heard both the parties, perused the materials available
on record and gone through orders of the authorities below. The
principles of natural justice demands that the appellate authority should
provide sufficient opportunities to the assessee to furnish necessary
evidences and to justify their case. The meaning thereby is that when
the assessee seeks adjournment by way of written letter with a reason,
it is the duty of appellate authorities to consider the request of the
assessee and post the case for hearing in any other convenient date. In
the present case, although, the assessee has filed a letter on
25.10.2023, i.e. on the date the appeal was fixed for hearing, seeking
adjournment on medical grounds, but the Ld.CIT(A) without considering
the request of the assessee, disposed off appeal on 25.10.2023 for non-
prosecution and also not decided the issues on merits in gross violation
of principles of natural justice. Therefore, we are of the considered view
that the appeal needs to go back to the file of the Ld.CIT(A) to give one
ITA No.1334/Chny/2023 :: 4 :: more opportunity of hearing to the assessee. Thus, we set aside the
appeal to the file of the Ld.CIT(A) with a direction to re-adjudicate the
issue on merits after providing a reasonable opportunity of hearing to
the assessee. Needless to say, the assessee shall appear before the
Ld.CIT(A) as and when the appeal is called for hearing and also file
necessary details without seeking any adjournment.
In the result, appeal filed by the assessee is allowed for statistical
purposes.
Order pronounced on the 23rd day of January, 2024, in Chennai.
Sd/- Sd/- (मंजूनाथा.जी) (चं�कांत वसंत भडंग) (MANJUNATHA.G) (C.V. BHADANG) लेखा सद(/ACCOUNTANT MEMBER अ%& /PRESIDENT चे�ई/Chennai, िदनांक/Dated: 23rd January, 2024. TLN आदेश की �ितिलिप अ*ेिषत/Copy to: 1. अपीलाथ� / Appellant 3. आयकर आयु+ / CIT 5. गाड� फाईल / GF 2. ��थ� / Respondent 4. िवभागीय �ितिनिध / DR
