2022 (5) TMI 1213 - AT - Income Tax

Appeal allowed for statistical purposes, emphasizing importance of fair hearing & procedural fairness in tax matters.

The Tribunal allowed the appeal for statistical purposes, emphasizing the importance of providing the assessee with a reasonable opportunity to be heard. ... Dismissal of assessee appeal - none appeared for the assessee and application seeking adjournment is also not filed, and therefore, the Ld. CIT(A) dismissed the appeal - HELD THAT:- Since the Appeal before the CIT(A) has been decided without hearing the assessee and assessee has urged the said grievance in the present appeal, in the interest of justice and to render the substantial justice by looking to the facts and circumstances of the case, we are inclined provide an opportunity to the assessee to canvas the appeal before the CIT(A). Accordingly, we set aside the order of the Ld. CIT(A) dated 16-01-2017 and remit the matter to the file of the Ld. CIT(A) for fresh consideration of the Appeal. Needless to say that the assessee shall be provided sufficient and reasonable opportunity of being heard on the statement of facts and the grounds raised in the appeal and pass appropriate order in accordance with law. Appeal of the assessee is allowed for statistical purposes. Issues:Appeal against disallowance of exemption claimed under Section 54F of the Act, imposition of penalty under section 271(1)(c) of the Act, dismissal of appeal by CIT(A) in absence of assessee, denial of opportunity of being heard to the assessee.Analysis:The appeal was filed by the assessee against the order of the Ld. CIT(A)-IV, Kanpur, regarding the disallowance of exemption claimed under Section 54F of the Act. The assessee had declared long term capital gain (LTCG) from the sale of a plot in the return of income. A portion of the LTCG was claimed exempt under Section 54F, as it was invested in a residential property. However, the explanation provided by the assessee regarding the utilization of the capital gain amount was not accepted, leading to the disallowance of the exemption claimed. Subsequently, penalty proceedings were initiated under section 271(1)(c) of the Act, resulting in the imposition of a penalty on the assessee.The CIT(A) dismissed the appeal in the absence of the assessee and the representative, which led to the assessee filing the present appeal. The main contention raised in the grounds of appeal was the failure of the CIT(A) to consider the facts and circumstances of the case. Upon review, it was found that the CIT(A) had dismissed the appeal without the presence of the assessee on multiple occasions, without any application for adjournment. In light of this, the Tribunal set aside the order of the CIT(A) and remitted the matter for fresh consideration, emphasizing the importance of providing the assessee with a reasonable opportunity to be heard.In conclusion, the Tribunal allowed the appeal for statistical purposes, highlighting the significance of ensuring due process and the right to be heard in appeal proceedings. The decision to remit the matter back to the CIT(A) for fresh consideration underscores the importance of procedural fairness and adherence to principles of natural justice in tax matters.Order Pronounced in the Open Court on 27/04/2022.