2019 (2) TMI 36 - AT - Income Tax

Assessment u/s.144 - Lack of proper representation by the assessee - Held that - After making additions and the additions were confirmed by the CIT(A) again without the proper representation from the assessee. It is an admitted fact that the additions were confirmed in view of lack of proper representation by the assessee before the lower authorities. Considering the set principles of natural justice, as mentioned in the open court, it appropriate to remand the entire issues to the file of AO for fresh adjudication after giving reasonable opportunity of being heard to the assessee. - Decided in favour of assessee for statistical purposes.

Summary

Issues: Appeal against order of CIT(A)-9, Pune for Assessment Year 2008-09 - Non-availability of documents affecting hearing - Incorrect Cost of Acquisition determination - Denial of deduction u/s 54F - Eligibility for exemption u/s 10(37) - Lack of representation before AO and CIT(A) - Request for remand for fresh adjudication.

Analysis:
1. The appeal was filed due to non-availability of documents affecting the hearing before CIT(A)-9, Pune. The appellant requested restoration of the appeal for fresh adjudication due to communication confusions.

2. The incorrect Cost of Acquisition determination by the AO was challenged. The AO assumed the fair market value of 01/04/1981 instead of the year 2000 when the appellant was granted land rights, impacting the quantum of long term capital gains.

3. The denial of deduction u/s 54F was contested, highlighting the construction of a new residential house by the appellant, which was not considered for the deduction by both CIT(A) and AO.

4. The eligibility for exemption u/s 10(37) was raised, claiming the fall out of agricultural land transfer as a result of compulsory acquisition by the Government.

5. The lack of representation before the AO and CIT(A) led to the dismissal of the appeal as 'not pressed'. The appellant explained reasons for non-appearance, citing inadequate knowledge of income tax proceedings.

6. The Tribunal remanded the issues to the AO for fresh adjudication, emphasizing the principles of natural justice. The appellant was directed to appear before the AO with relevant documents, granting an opportunity to be heard. Failure to represent the case would allow the AO to repeat the additions in the fresh assessment.

7. The grounds raised by the assessee were allowed for statistical purposes, and the appeal was allowed for the same reasons. The decision was pronounced on October 10, 2018.