P.BASKAR, CHENNAI V. ITO INTERNATIONAL TAXATION WARD 1(1), CHENNAI

ITA 2962/CHNY/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2278 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 6 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-04-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 26-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Set aside
• Section: 56(2)(vii)(b); 54F

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: CHENNAI . , , BEFORE SHRI DUVVURU RL REDDY , JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBE R ./ ITA NO.2962/CHNY/2018 /ASSESSMENT YEAR: 2015-16 SHRI P. BASKAR, NO.3D, LAKSHMIMAA APARTMENTS, NO.40, 4 TH SEAWARD ROAD, THIRUVANMIYUR, CHENNAI-600 041. VS. THE INCOME TAX OFFICER , INTERNATIONAL TAXATION, WARD-1(1), CHENNAI. [PAN: ADAPB 4101C ] ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE /RESPONDENT BY : SHRI G. JOHNSON, ADDL. CIT /DATE OF HEARING : 23.03.2021 / DATE OF PRONOUNCEMENT : 27.04.2021 / O R D E R PER SHRI S. JAYARAMAN, ACCOUNTANT MEMBE R : THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-16, CHENNAI, I N ITA NO.54/CIT(A)-16/2015-16 DATED 09.08.2018 FOR THE AS SESSMENT YEAR 2015-16. 2. SHRI P. BASKAR, THE ASSESSEE, IS A NON-RESIDENT AND HAS FILED HIS RETURN OF INCOME FOR A.Y 2015-16 CLAIMING DEDUCTION U/S. 54F OF THE ITA NO.2962/CHNY/2018 :- 2 -: INCOME TAX ACT, 1961 (IN SHORT THE ACT). WHILE M AKING THE ASSESSMENT, THE ASSESSING OFFICER (A.O) FOUND, INTER ALIA, THAT THE ASSESSEE OWNING MORE THAN ONE PROPERTY OTHER THAN THE NEW ASSET ON THE DATE OF TRANSFER OF THE ORIGINAL ASSET AND HENCE HELD THAT HE IS NOT ELIGIBLE FOR THE DEDUCTION U/S. 54F OF THE ACT. HE FURTHER MADE AN ADDITION U/S. 56(2)(VII)(B) OF THE ACT AND COMPLETED THE ASSESSME NT. AGGRIEVED, THE ASSESSEE FILED AN APPEAL BEFORE CIT(A). THE LD. CIT (A) DISMISSED THE APPEAL. AGGRIEVED AGAINST THAT ORDER, THE ASSESSEE FILED THIS APPEAL. 3. THE CASE WAS HEARD THROUGH VIDEO CONFERENCING. T HE LD. AR SUBMITTED THAT THOUGH THE ASSESSEE HAS TAKEN VARIOU S GROUNDS, THE ESSENTIAL ISSUES ARE ON THE COMPUTATION OF LONG TER M CAPITAL GAIN, ALLOWANCE OF DEDUCTION U/S. 54F OF THE ACT AND THE ADDITION MADE U/S. 56(2)(VII)(B) OF THE ACT. THE LD. A.R INVITED OUR A TTENTION AND SUBMITTED THAT SINCE, THE LD. CIT(A) HAS DECIDED THE ISSUE WI THOUT HEARING THE ASSESSEE, ONE MORE OPPORTUNITY MAY BE GIVEN BEFORE THE LD. CIT(A) SO THAT THE ISSUES ARE DECIDED ON MERITS. 4. PER CONTRA, THE LD. D.R SUBMITTED THAT THE LD. C IT(A) POSTED THE CASE FOR HEARING ON 26.04.2018, 30.05.2018 AND 16.0 7.2018. BUT NONE APPEARED, NOR REPRESENTED OF THE CASE OR ANY WRITTE N SUBMISSION WAS MADE TO SUBSTANTIATE THE GROUNDS OF APPEAL. IN THE CIRCUMSTANCES, THE LD. CIT(A) CORRECTLY DECIDED THE ISSUE AND HENCE, H E SUPPORTED THE ORDER ITA NO.2962/CHNY/2018 :- 3 -: OF THE LD. CIT(A). THE LD. AR SUBMITTED THAT THE L D. CIT(A) ADJOURNED THE MATTER AT THE INSTANCE OF THE C.A IN THE FIRST HEARING AND THERE WAS NO FURTHER NOTICES ISSUED FOR HEARING OF APPEAL. 5. WE HEARD THE RIVAL SUBMISSIONS AND GONE THROUGH THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE LD. CIT(A) DECIDE D THE APPEAL HOLDING THAT HE POSTED THE CASE FOR HEARING ON VARIOUS DAT ES, BUT NON APPEARED NOR REPRESENTED THE CASE. HOWEVER, THE ASSESSEE PLE ADS THAT THE IMPUGNED APPEAL WAS DECIDED WITHOUT GIVING AN OPPOR TUNITY. THEREFORE, IT WAS PLEADED THAT AT LAST ONE EFFECTIVE OPPORTUNITY OF BEING HEARD BEFORE THE LD.CIT(A) WOULD ENSURE DECIDING THE ISSUES ON M ERITS THEREBY SUBSTANTIAL JUSTICE WOULD BE RENDERED. IN THE FACT S AND CIRCUMSTANCES, WE DEEM IT FIT TO SET ASIDE THE ORDER OF LD. CIT(A) AND REMIT THIS ISSUES BACK TO THE LD. CIT(A) FOR FRESH DECISION. THE ASSE SSEE SHALL FURNISH RELEVANT MATERIAL IN SUPPORT OF HIS CONTENTION AND COMPLY WITH THE REQUIREMENTS OF THE LD. CIT(A) IN ACCORDANCE WITH L AW IN SUCH A WAY THAT THE APPEAL IS DECIDED EARLY. THE LD. CIT(A) ON DUE EXAMINATION OF THEM AND AFTER AFFORDING DUE OPPORTUNITY TO THE ASSESSEE DECIDE THE ISSUES IN ACCORDANCE WITH LAW. ITA NO.2962/CHNY/2018 :- 4 -: 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON THE DAY OF 27 TH APRIL, 2021 IN CHENNAI. SD/ - SD/ - ( . ) (DUVVURU RL REDDY) /JUDICIAL MEMBER ( . ) (S. JAYARAMAN) /ACCOUNTANT MEMBER /CHENNAI, /DATED: 27 TH APRIL, 2021 . EDN, SR. P.S /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( )/CIT(A) 4. /CIT 5. /DR 6. /GF