2021 (6) TMI 537 - AT - Income Tax

Capital gain computation - adopting value by invoking provisions of section 50C for computation of capital gains - HELD THAT - From the facts of the case it appears that the assessee did not properly co-operate before the Ld. AO. Considering the explanation rendered by the Ld. AR regarding the hardship faced by the assessee and since the assessee is a senior citizen, we are of the view that in the interest of justice one more opportunity should be provided to the assessee to pursue his case. Accordingly, we hereby remit the entire matter back to the file of Ld. AO for de novo consideration. In the result, appeal of the assessee is allowed for statistical purposes.

Summary

Issues:
1. Delay in filing the appeal before the Tribunal.
2. Application of Section 50C for computation of capital gains.
3. Assessment reopening and assessment of LTCGs by the AO.
4. Plea for providing one more opportunity to pursue the case.

Issue 1: Delay in filing the appeal before the Tribunal:
The appeal was filed with an 11-day delay, attributed to the oversight of the assessee's Counsel. The Tribunal condoned the delay in the interest of justice, allowing the appeal to be adjudicated on merits.

Issue 2: Application of Section 50C for computation of capital gains:
The case involved the application of Section 50C concerning the valuation of property for capital gains computation. The Ld. CIT (A) upheld the AO's decision to adopt the SRO value for computation, considering the sale agreement details and the actual valuation. The Tribunal found the AO's approach correct, leading to the assessment of LTCGs at a specific amount.

Issue 3: Assessment reopening and assessment of LTCGs by the AO:
The assessment was reopened due to the assessee's failure to respond to notices regarding the sale of a property and LTCGs computation. The Ld. CIT (A) dismissed the case, emphasizing the application of Section 50C and the valuation aspects. However, the Tribunal, after considering the hardship faced by the senior citizen assessee, remitted the matter back to the AO for fresh consideration.

Issue 4: Plea for providing one more opportunity to pursue the case:
The assessee, citing personal hardships, requested another chance to present the case effectively. The Ld. DR opposed this plea, advocating for upholding the Revenue Authorities' decision. The Tribunal, acknowledging the senior citizen status of the assessee and the hardships faced, granted the request for another opportunity, remitting the matter back to the AO for a fresh assessment.

In conclusion, the Tribunal addressed various aspects, including the delay in filing the appeal, the application of Section 50C for capital gains computation, the assessment reopening, and the plea for providing another opportunity to pursue the case. The decision highlighted considerations of justice, legal principles, and individual circumstances, leading to the remittance of the matter for fresh assessment in the interest of fairness and due process.