Tribunal grants appeal stressing fair hearing. Orders set aside, matter remanded for fresh adjudication.

The Tribunal allowed the appeal for statistical purposes, emphasizing the importance of providing a fair opportunity for the appellant to present their case and be heard before making a decision. The orders passed without proper opportunity of hearing were set aside, and the matter was remanded for fresh adjudication on merit after affording the appellant the opportunity to be heard.

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Issues involved:
1. Proper opportunity of hearing not provided by Ld. Commissioner of Income Tax (Appeals)
2. Disallowance of claim u/s 54B
3. Ex-parte order passed without considering adjournment request
4. Affording opportunity of being heard to the assessee

Analysis:

Issue 1: Proper opportunity of hearing not provided by Ld. Commissioner of Income Tax (Appeals)
The appellant contended that the Ld. Commissioner of Income Tax (Appeals) erred in dismissing the appeal without providing proper opportunity of hearing. The appellant cited various reasons for seeking adjournments, including the lockdown due to Covid-19 and technical glitches in the new Income Tax Portal. The appellant argued that the orders passed were void abinitio due to lack of proper opportunity. The Hon'ble Supreme Court's order extending limitation periods was also highlighted. The Central Board of Direct Taxes had clarified the extension of limitation for filing appeals. The Tribunal noted that the appellant had not deliberately avoided filing submissions and set aside the order to allow a fresh opportunity for the appeal to be heard on merit.

Issue 2: Disallowance of claim u/s 54B
The Assessing Officer had disallowed the claim u/s 54B, reducing the deduction amount significantly. The appellant challenged this disallowance, arguing that the disallowance was against the factual circumstances of the case. The CIT(A) confirmed the disallowance, stating that the appellant had not cultivated the land for the required period to claim the deduction. The AO had verified the land cultivation with relevant authorities and determined the capital gains accordingly. The Tribunal observed that the appellant had not submitted material against the assessment order and had not fulfilled the conditions specified in section 54B. Consequently, the appeal on this ground was dismissed.

Issue 3: Ex-parte order passed without considering adjournment request
The appellant had sought adjournments due to various reasons, including the Covid-19 lockdown and technical issues with the new Income Tax Portal. Despite the adjournment request, the Ld. Commissioner of Income Tax (Appeals) passed an ex-parte order without considering the adjournment request made by the appellant. The Tribunal found merit in the appellant's argument that the matter should be set aside for a fresh opportunity to be heard and decided on merits as per law.

Issue 4: Affording opportunity of being heard to the assessee
The Tribunal concluded that the Ld. Commissioner of Income Tax (Appeals) had not provided proper opportunity of being heard to the assessee. The order was set aside, and the matter was restored back to the Ld. Commissioner of Income Tax (Appeals) for a readjudication of the appeal on merit after affording the opportunity of being heard to the assessee.

In conclusion, the Tribunal allowed the appeal for statistical purposes, emphasizing the importance of providing a fair opportunity for the appellant to present their case and be heard before making a decision.

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