2024 (10) TMI 658 - AT - Income Tax

Addition u/s 56(2)(vii)(b) - difference of stamp duty valuation of land and settlement amount - HELD THAT - As evident that neither the detailed submissions filed by the assessee on 15/02/2021 were considered by CIT(A) nor the agreement dated 13/09/1984 and deed of confirmation dated 17/06/2000, placed reliance upon by the assessee, were considered by the CIT(A). It is trite that the power of the CIT(A) is co-terminus to the AO, however, in the present case the CIT(A) did not examine any of the contentions raised by the assessee and nor call for any further information to upheld the additions made by the AO. Therefore, in view of the above, we deem it appropriate to restore the issues raised in the present appeal to the file of the CIT(A) for denovo adjudication - Appeal of the assessee is allowed for statistical purposes.

Summary

Issues:
Challenge to impugned order under section 250 of the Income Tax Act, 1961 by the assessee for the assessment year 2015-16. Delay in filing appeal and application for condonation of delay. Addition made under section 56(2)(vii)(b) of the Act and dismissal of appeal by the learned CIT(A). Consideration of detailed submissions by the assessee during appellate proceedings.

Analysis:
The appeal was filed challenging the order passed by the learned Commissioner of Income Tax (Appeals) under section 250 of the Income Tax Act, 1961. The appeal arose from the assessment order passed by the Assessing Officer for the assessment year 2015-16. The assessee raised grounds related to the addition made under section 56(2)(vii)(b) of the Act, challenging the actions of the AO and the learned CIT(A) for dismissing the appeal without proper consideration. The delay in filing the appeal was sought to be condoned based on valid reasons provided by the assessee.

The reasons for the delay in filing the appeal were considered by the Tribunal, and it was found that the delay fell within the parameters for grant of condonation as laid down by the Hon'ble Supreme Court. The Tribunal decided to condone the delay and proceeded to hear the appeal on merits. The main issue for consideration was the addition made under section 56(2)(vii)(b) of the Act, concerning the sale of an immovable property by the assessee. The AO had made additions based on discrepancies in the valuation of the property and non-payment of the full consideration amount to the seller.

The learned CIT(A) dismissed the appeal without considering detailed submissions filed by the assessee during the appellate proceedings. The Tribunal noted that the CIT(A) did not examine the contentions raised by the assessee or consider relevant documents submitted. Therefore, the Tribunal decided to set aside the impugned order and directed the Ld. CIT(A) to re-examine the issues raised by the assessee after considering all documents and submissions. The Tribunal emphasized the importance of providing a reasonable opportunity of hearing to both parties before passing any order.

In conclusion, the appeal of the assessee was allowed for statistical purposes, and the case was remanded back to the Ld. CIT(A) for denovo adjudication after proper examination of all relevant documents and submissions, ensuring due process and fair hearing for both parties.