Amar Dyeing Works (Regd.), New Delhi V. ITO, Ward- 30(5), New Delhi

ITA 1452/DEL/2019

AI Insights

The case involves M/s Amar Dyeing Works appealing against the order of the ld. CIT(A)-10, New Delhi, which confirmed the addition of Rs.4,36,36,228 as long-term capital gain under section 45(5)(a) of the Income Tax Act, 1961. The addition was made following compensation received from DMRC for land acquisition. The primary contention was the lack of a fair hearing and the application of principles of natural justice, as the additions were confirmed ex-parte by both the Assessing Officer and the CIT(A). The Tribunal noted the assessee's previous non-compliance but decided to remand the case to ensure a fair hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 131719 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 2 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 14-02-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 20-02-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SHREY JAIN
• Keywords: Principle of natural justice
• Section: 234B

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL DELHIBENCH ‘A’, NEW DELHI Before Sh. C. M. Garg, Judicial Member Dr. B. R. R. Kumar, Accountant Member ITA No. 1452/Del/2019 : Asstt. Year: 2015-16 M/s Amar Dyeing Works (Regd.), 87, Bagh Sambhu Dayal, Okhla Industrial Area, New Delhi-110020 Vs. Income Tax Officer, Ward-30(5), New Delhi-110002 (APPELLANT) (RESPONDENT) PAN No. AABFA0620P Assessee by : Sh. Shrey Jain, Adv. Revenue by : Sh. Kanv Bali, Sr. DR Date of Hearing: 15.02.2023 Date of Pronouncement: 09.05.2023 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by assessee against the order of ld. CIT(A)-10, New Delhi dated 28.12.2018. 2. Following grounds have been raised by the assessee: “1. That having regard to the f acts and circumstances of the case, ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in making addition of Rs.4,36,36,228/- on account of compensation received from DMRC for acquisition of land as long term capital gain u/s 45(5)(a) and that too without granting the opportunity of being heard and without observing the principles of natural justice. 2. That in any case and in any view of the matter, action of ld. CIT(A) in confirming the action of Ld. AO in making addition of Rs.4,36,36,228/- as long term capital gain u/s 45(5)(a), is bad in law and against the facts and circumstances of the case. ITA No. 1452/Del/2019 Amar Dyeing Works (Regd.) 2 3. That having regard to the facts and circumstances of the case, ld. CIT(A) has erred in law and on facts in not reversing the action of Ld. AO in charging interest u/s 234A, 234B of the Income Tax Act, 1961.” 3. The assessee filed return of income on 27.03.2017 declaring total income of Rs.25,550/- and the same has been assessed determining the total income at Rs.4,36,61,780/-. The issue involved pertains to “The right to fair compensation and transparency in land acquisition, rehabilitation and re- settlement Act, 2013. The order has been passed ex-parte by the Assessing Officer as well as by the ld. CIT(A). The assessee has been grated 6 opportunities by the ld. CIT(A), however, the assessee did not comply to the notice of the ld. CIT(A). 4. Before us, it was pleaded by the ld. AR given an opportunity due compliance would be made before the ld. CIT(A). The ld. DR vehemently opposed to the submission of the ld. AR and argued that the assessee was lenient to attend the hearings before the revenue authorities at all the times. 5. Having gone through the facts of the case and the assessment made, we are of the considered view that no prejudice would be caused to the revenue, if an opportunity of being heard by the ld. CIT(A) given to the assessee. Hence, we remand the matter to the file of the ld. CIT(A) to decide the case afresh after giving an opportunity of the assessee. ITA No. 1452/Del/2019 Amar Dyeing Works (Regd.) 3 6. In the result, the appeal of the assessee is allowed for statistical purpose. Order Pronounced in the Open Court on 09/05/2023. Sd/- Sd/- (C. M. Garg) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 09/05/2023 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR