Jagroshni (L/H OF Late Anant Ram), New Delhi V. ITO WARD - 54(5), New Delhi

ITA 6087/DEL/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 3474 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 2 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 17-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Revised return; TDS
• Section: 201; 13

Judgement Text

IN TH E INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : SMC : NEW DELHI (THROUGH VIRTUAL HEARING) BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER ITA NO . 6087 /DEL/20 1 9 ASSESSMENT YEAR : 20 1 4 - 15 JAGROSHNI (L/H OF LATE ANANT RAM), T - 77, SARAI KALE KHAN, EAST HAZRAT NI ZAMUDDIN, NEW DELHI. PAN: A NWPR8178H VS. ITO, WARD 54 ( 5 ), NEW DELHI. (APPELLANT ) (RESPONDENT) A SSESSEE BY : NONE RE VENUE BY : SHRI R .K. GUPTA, SR. DR DATE OF HEARING : 13.10. 20 21 DATE OF PRONOUNCEMENT : 13 . 10 . 2 0 21 ORDER TH IS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE EX PARTE ORDER DATED 15 TH MA RCH , 2019 OF THE CIT(A) - 18 , NEW DELHI, RELATIN G TO ASSESSMENT YEAR 20 1 4 - 15 . 2. DESPITE SERVICE OF NOTICE, NONE APPEARED ON BEHALF OF THE ASSESSEE . T HEREFOR E, THIS APPEAL IS BEING DECIDED ON THE BASIS OF THE MATERIAL AVAILABLE ON RECORD AND AFTER HEARING THE LD. DR. ITA NO. 6087 / DEL/ 201 9 2 3 . ALTHOUGH A NUMBER OF GROUNDS HAVE BEEN RAISED BY THE ASSESSEE, THESE ALL RELATE TO THE EX PARTE ORDER OF THE CIT(A) IN SUSTAINING AN ADDITION OF RS.23,09,415/ - MADE BY THE AO ON ACCOUNT OF INTEREST ON COMPENSATION/ENHANCED COMPENSATION. 4 FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSEE IS A N INDIVIDUAL AND FILED ITS RETURN OF INCOME ON 27 TH SEPTEMBER, 201 4 DECLARING THE TOTAL INCOME OF THE ASSESSEE AT RS. 2,45,160/ - . DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AO ASKED THE ASSESSEE TO FILE THE BIFURCATION OF COMPENSATION/ENHANCED COMPENSATION AND INTEREST ON COMPENSATION RECEIVED ON COMPULSORY ACQUISITION OF LAND AND PROOF OF AGRICULTUR AL INCOME DECLARED IN THE RETURN. THE ASSESSEE, IN RESPONSE TO THE SAME, SUBMITTED THAT THE AMOUNT OF RS.74, 42,895/ - IS NOT ACTUALLY THE AGRICULTURAL INCOME , BUT, THE TOTAL COMPENSATION RECEIVED BY THE ASSESSEE AGAINST THE COMPULSORY ACQUISITION OF AGRIC ULTURAL LAND SITUATED AT VILLAG E KILOKARI AND BEHLOLPUR KHADDAR. IT WAS SUBMITTED THAT WHILE FILING THE RETURN FOR THE IMPUGNED ASSESSMENT YEAR, THIS AMOUNT OF COMPENSATION WAS WRONGLY MENTIONED AS AGRICULTURAL INCOME. HE NOTED THAT THE ASSESSEE HAS ALSO CLAIMED THE AMOUNT OF TDS DEDUCTED ON THIS AMOUNT OF COMPENSATION AS REFUND IN THE REVISED RETURN. THE ASSESSEE HAS CLAIMED DEDUCTION U/S 10(37) ON ACCOUNT OF CAPITAL GAIN ARISING OUT OF ACQUISITION OF AGRICULTURAL LAND. ITA NO. 6087 / DEL/ 201 9 3 5. HOWEVER, THE AO NOTED THAT O UT OF THE TOTAL AMOUNT OF RS.74,42,895/ - , RS.46,18,829/ - IS THE INTEREST ON COMPENSATION/ENHANCED COMPENSATION WHICH IS TAXABLE U/S 56(2)(VIII) R.W.S. 145A(B) OF THE IT ACT. HE, THEREFORE, ASKED THE ASSESSEE TO FILE HIS SUBMISSION. IN ABSENCE OF ANY SATI SFACTORY EXPLANATION GIVEN BY THE ASSESSEE, THE AO TREATED THE AMOUNT OF RS.46,18,829/ - AS INCOME UNDER THE HEAD INCOME FROM OTHER SOURCES. AFTER ALLOWING DEDUCTION OF 50% U/S 56(2)(VIII) OF THE ACT, THE AO MADE AN ADDITION OF RS.23,09,415/ - TO THE TOTA L INCOME OF THE ASSESSEE. THUS, THE AO DETERMINED THE INCOME OF THE ASSESSEE AT RS.25,54,580/ - . 6. SINCE THE ASSESSEE DID NOT APPEAR BEFORE THE CIT(A), THE LD.CIT(A), IN THE EX PARTE ORDER PASSED BY HIM, SUSTAINED THE ADDITION MADE BY THE AO. 7 . AGGRIEV ED WITH SUCH ORDER OF THE CIT(A), THE ASSESSEE IN APPEAL BEFORE THE TRIBUNAL . 8 . I HAVE HEARD THE LD. DR AND PERUSED THE RECORD. IT IS AN ADMITTED FACT THAT THE ASSESSEE DID NOT APPEAR BEFORE THE CIT(A) FOR WHICH HE WAS CONSTRAINED TO PASS THE EX PART E ORDER BY RELYING ON THE DECISION OF THE HON BLE SUPREME COURT IN THE CASE OF CIT VS. MULTIPLAN INDIA LTD., REPORTED IN 38 ITD 320. HOWEVER, HE HAS NOT DECIDED THE APPEAL ON MERIT WHICH HE IS REQUIRED TO DO AS PER THE PROVISIONS OF SECTION 250(6) OF THE ACT, ACCORDING TO WHICH, THE ORDER OF THE CIT(A) DISPOSING OF THE APPEAL SHALL BE IN WRITING AND SHALL STATE THE POINTS FOR ITA NO. 6087 / DEL/ 201 9 4 DETERMINATION, THE DECISION THEREON AND THE REASON FOR THE DECISION. SINCE THE LD.CIT(A), IN THE INSTANT CASE, HAS NOT DECIDED TH E APPEAL ON MERIT, THEREFORE, C ONSIDERING THE TOTALITY OF THE FACTS OF THE CASE AND IN THE INTEREST OF JUSTICE, I DEEM IT PROPER TO RESTORE THE ISSUE TO THE FILE OF THE CIT(A) WITH A DIRECTION TO GRANT ONE FINAL OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE HIS CASE AND DECIDE THE APPEAL AS PER FACT AND LAW BY PASSING A SPEAKING ORDER . THE ASSESSEE IS ALSO HEREBY DIRECTED TO APPEAR BEFORE THE CIT(A) AND SUBSTANTIATE HIS CASE WITHOUT SEEKING ANY ADJOURNMENT UNDER ANY PRETEXT FAILING WHICH THE LD.CIT(A) IS AT L IBERTY TO PASS APPROPRIATE ORDER AS PER LAW. I HOLD AND DIRECT ACCORDINGLY. TH E GROUND S RAISED BY THE ASSESSEE ARE ACCORDINGLY ALLOWED FOR STATISTICAL PURPOSES. 9 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . TH E DECISION WAS PRONOUNCED IN THE OPEN COURT ON 13. 1 0 . 20 21 . SD/ - ( R. K. PANDA ) ACCOUNTANT MEMBER DATED: 13 TH OCTOBER, 2 0 21 DK ITA NO. 6087 / DEL/ 201 9 5 COPY FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASSTT. REGISTRAR, ITAT, NEW DELHI