DAYALO DEVI HUF,PANCHKULA vs. ITO, WARD-1, PANCHKULA

This is assessee's appeal for assessment year 2017-18 against the order dated 27.03.2023 passed by the ld. Commissioner of Income Tax (Appeals) NFAC, Delhi [in short ‘the CIT(A)’].

The assessee has raised the following grounds of appeal:

That the Learned CIT(A) has grossly erred in upholding the illegal order passed by the Assessing Officer wherein an addition amounting to Rs. 1,52,36,040/- was made on account of amount received by the assessee as enhanced compensation alongwith the interest u/s 28 of the Land Acquisition Act, as income from other sources, whereas the enhanced compensation and interest received u/s 23(I-A), 23(2) and 28 is exempt as held by the Hon'ble Supreme Court and various Hon'ble Courts. 5. That the Ld. CIT(A) has grossly erred in upholding the intimation order passed u/s 143(1) by the AO, CPC, Bangalore without appreciating the fact that intimation order is without proper jurisdiction and passed beyond the scope and powers enshrined u/s 143(1). 6. Without prejudice to the aforesaid grounds of appeal and strictly in the alternative the Ld. AO and CIT(A), has grossly erred in not allowing the benefit of 50% deduction of said sum duly allowable u/s 57 of the Income Tax Act.

The facts of the case are that the assessee is an individual and had e-filed the return of income for the assessment year 2017-18 belatedly on 30.03.2018 declaring total income of Rs.4,36,350/-. The return was processed u/s 143(1) of the Income Tax Act, 1961 on 26.03.2019 by the DCIT, CPC, Bengaluru assessing the total income at Rs.1,56,72,390/- by adding enhanced compensation and interest received for land acquisition.

The ld. Counsel for the assessee has contended that the ld. CIT(A) has passed the order dated 27.03.2023 u/s 250 of the Act, upholding the addition amounting to Rs.1,52,36,040/- made by the Assessing Officer by giving only one notice of hearing for filing written submissions by 27.03.2023. It was submitted that the written submissions/Paper Books were duly filed on 27.03.2023

The ld. DR, on the other hand, has placed strong reliance on the impugned order.

We have heard the parties and have perused the material on record. The ld. Counsel for the assessee has submitted that two Paper Books containing reply/written submissions and case laws, etc., were submitted before the ld. CIT(A), but the same were not considered and the order was passed upholding the order passed by the Assessing Officer. We deem it fit and appropriate that in the interest of justice, the assessee should be given an opportunity to explain his case by way of evidence, documents, or information, etc. Accordingly, in the interest of justice, the file is restored to the file of ld. CIT(A) to decide the matter afresh in accordance with law after giving reasonable opportunity of being heard to the assessee. The assessee, no doubt, shall cooperate in the fresh proceedings before the CIT(A). All pleas available under the law shall remain so available to the assessee.