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TMI Blog2024 (8) TMI 168X X X X Extracts X X X X X X X X Extracts X X X X ..... he matter back to the file of Ld. CIT (A)-NFAC in order to consider the appeal afresh and decide the case on merits by providing one more opportunity to the assessee of being heard in accordance with the principles of natural justice. - Shri Duvvuru Rl Reddy, Hon ble Judicial Member For the Appellant : Sri C. Subrahmanyam, AR For the Respondent : Dr. Aparna Villuri, Sr. AR ORDER PER DUVVURU RL REDDY, JUDICIAL MEMBER : Both these appeals are filed by the assessee against the orders of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [ Ld. CIT(A)-NFAC ] vide DIN Order No. ITBA/NFAC/S/250/2023-24/1059603688(1), dated 11/01/2024 arising out of the order passed U/s. 143(3) of the Act and DIN Order No. ITBA/NFAC/S/250/202324/1059601065(1), dated 11/01/2024 arising out of the order passed U/s. 154 of the Act for the AY 2016-17. Since both these appeals are pertaining to the same assessee, for the sake of convenience, these appeals are clubbed, heard together and disposed of in this consolidated order. 2. At the outset, it is noticed from the appeal record that there is a delay of 77 days in each case (ITA No. 237 238/Viz/2024) in filing these appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... house worth Rs. 25,56,000/- vide Document No. 6224/2015 registered at SRO, Rajanagaram. The source of investment is the advance amount received on the development agreement entered with Bhavya Builders vide Doc. No. 12772/2015 registered at SRO, Rajahmundry by the assessee and her husband. The Ld. AO on verification of the assessee s return of income observed that the assessee has not paid any capital gains tax on the development agreement entered with Bhavya Builders and therefore, the assessee was issued a show cause notice and required to furnish the valid explanation along with documentary evidences as to why the capital gains were not paid on the development agreement worth Rs. 3,06,18,000/-. The Ld. AO, after examining and discussing the issue at length vide page 2 of the assessment order, observed that since the assessee did not furnish the purchase document and the year of purchase of the property, indexed cost of acquisition cannot be ascertained and is treated as NIL. Accordingly, the Ld. AO completed the assessment by making addition of Rs. 44,12,340/- [the assessee s share in the value of the land transferred of Rs. 88,24,680/-] and added the same total income of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the claim U/s. 54 has been disregarded, further resulting in erroneous assessment. 6. In consideration of the above-stated grounds, and other reasons to be submitted during the course of the hearing, the appellant respectfully prays for the impugned order to be set-aside in the interest of justice. 6. At the outset, the Ld. Authorized Representative [ Ld. AR ] submitted before me that the Ld. CIT (A)-NFAC has passed ex-parte order without providing proper opportunity to the assessee of being heard. It was therefore pleaded that the matter may be remitted back to the file of the Ld CIT (A)-NFAC in order to provide one more opportunity to the assessee of being heard. Ld. Departmental Representative [ Ld. DR ], on the other hand, vehemently opposed to the submissions of the Ld. AR and argued that several opportunities had been provided to the assessee however, on the given dates of hearing, neither the assessee nor her Representative has responded to the notices issued nor filed any details / submissions as called for by the Ld. CIT (A)-NFAC. It was further submitted that, under these circumstances, the Ld. CIT (A)-NFAC had no other option but to pass ex-parte order based on the mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the development was also not reduced to compute the capital gains. 3. Deduction U/s. 54F was also not considered while computing the value of long term capital gains. 4. The development agreement was not properly implemented by the developer and it is in the court. Hence no capital gains arises. After considering the rectification application filed by the assessee and on perusal of the assessment record, the Ld. AO rejected all the four issues raised in the assessee s rectification application. Aggrieved by the Ld. AO rejection of the rectification application, the assessee preferred an appeal before the Ld. CIT(A)-NFAC. 10. On appeal, the Ld. CIT(A)-NFAC passed ex-parte order in the absence of any response on behalf of the assessee with respect to the notices issued and dismissed the appeal of the assessee by observing as under: 7.4. I have perused the ground of appeal, statement of facts and the rectification order. The assessee has not produced any material to controvert the findings of the Ld. AO. In the event, I have no reason to interfere with the findings of the Ld. AO. In such circumstances, I dismiss the claim of the appellant. 11. Aggrieved by the order of the Ld. CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the Ld. CIT (A)NFAC had posted the case on several occasions. However, there was no response on behalf of the assessee before the CIT(A)-NFAC on the dates of hearing with regard to the details / submissions as called for by the Ld. CIT(A)-NFAC. Therefore, the Ld. CIT (A)-NAFC was left with no other option except to adjudicate the appeal ex-parte and dismissed the appeal. In this situation, considering the issues involved in the appeal, I am of the considered view that the Ld. CIT(A)-NFAC ought to have decided the case on merits instead of dismissing the appeal ex-parte. However, considering the prayer of the Ld. AR, and in the interest of justice, I hereby remit the matter back to the file of Ld. CIT (A)-NFAC in order to consider the appeal afresh and decide the case on merits by providing one more opportunity to the assessee of being heard in accordance with the principles of natural justice. At the same breath, I also hereby caution the assessee to promptly co-operate before the Ld. CIT (A)-NFAC in the proceedings failing which the Ld. CIT (A)-NFAC shall be at liberty to pass appropriate order in accordance with law and merits based on the materials on the record. It is or ..... 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