VASAGAR,THENI V. ITO, WARD-1(2), THENI

ITA 619/CHNY/2025

AI Insights

The case involves an appeal by the assessee, Vasagar, against the orders of the Assessing Officer and the Learned Commissioner of Income Tax (Appeals), which disallowed the claim of cost of improvement amounting to Rs. 18,20,472 on the sale of property, thus adding the same to the long-term capital gains. The Tribunal noted the absence of representation for the assessee during the hearing and proceeded with the assistance of the respondent's representative. The Tribunal found that both the lower authorities had passed ex-parte orders without sufficient opportunity for the assessee to present his case, leading to the decision to remit the matter back to the Assessing Officer.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312883 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2018-2019
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M.P. GURUPRASAD
• Keywords: Set aside; Opportunity of being heard; Capital Gains
• Section: 147

Judgement Text

"आयकर अपीलीय अिधकरण, ‘डी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0019ी यस यस िव ने रिव, \u0011ा ियक सद एवं \u0019ी जगदीश, लेखा सद क े सम( BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.619/Chny/2025 िनधा :रण वष: /Assessment Year: 2018-19 Vasagar, 33, Main Road, Cumbum, Theni District – 625 516. [PAN: ACXPV 6822E] Vs. The Income Tax Officer, Ward-1(2), Theni. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थG की ओर से/ Appellant by : None IJथG की ओर से /Respondent by : Shri M.P.Guruprasad, Addl. CIT सुनवा ई की ता रीख/Date of Hearing : 23.04.2025 घोषणा की ता रीख /Date of Pronouncement : 30.04.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2018-19 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 26.12.2024 in the matter of assessment framed by the Assessing Officer [AO] u/s. 147 r.w.s 144B of the Income-tax Act,1961 (hereinafter “the Act”) dated 25.03.2023. ITA No.619/Chny/2025 :- 2 -: 2. When the appeal was taken up for hearing, none appeared on behalf of the assessee. Accordingly, the hearing was proceeded with the able assistance of Ld. D.R, Mr. M.P. Guruprasad, Addl. CIT. 3. The assessee has filed return of income declaring total income of Rs. 5,71,430/-. The assessee in the return of income originally filled had shown consideration on sale of property at Rs. 23 Lakhs and claimed deduction of Rs.18,20,472/- towards the cost of improvement while computing Long Term Capital Gains. The A.O in the ex-parte assessment order passed u/s. 147 of the Act, has disallowed the claim of cost of improvement and added Rs.18,20,472/- to the long-term capital gain. On appeal, Ld. CIT(A) has dismissed the appeal ex-parte, stating that the assessee failed to submit any documentary evidence in support of the claimed cost of improvement of Rs.18,20,472/-. 4. We find that the A.O and Ld. CIT(A) have passed orders ex- parte by disallowing the claim of cost of improvement of Rs.18,20,472/-. We are of opinion that assessee should be given with another opportunity of hearing to substantiate his claim before the A.O in support of the claim of cost of improvement in the interest of justice. Accordingly, we set aside the orders passed by the A.O as well as Ld. CIT(A) and remit the matter to the file of A.O to decide the issue ITA No.619/Chny/2025 :- 3 -: denovo, after affording the assessee due opportunity of being heard, in accordance with law. We also direct the assessee to appear before the A.O on the date of hearing without fail. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. 5. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 30th April, 2025. Sd/- Sd/- (यस यस िव ने रिव) (SS Viswanethra Ravi) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 30th April, 2025. EDN/- आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Madurai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "