2024 (7) TMI 966

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..... Grounds of appeal raised by the assessee are as under:- "1. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Appeals), NFAC has erred in passing ex-parte order although assessee filed adjournment application on 11.02.2021. 2. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax(Appeals), NFAC has erred in confirming the action of Assessing Officer in disallowing the deduction u/s 54F amounting to Rs. 72,79,111. 3. It is therefore prayed that above addition made by Assessing Officer and confirmed by Commissioner of Income-tax (Appeals) may please be deleted. 4. Appellant craves leave to add, alter or de....

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....Rs. 74,02,000/- in cash but the source of such expenses are not given. The AO also made spot verification of the impugned new building and found that construction was not completed till date. Hence, he restricted the deduction u/s 54F of the Act to Rs. 33,99,880/- being 77.27% of Rs. 44,00,000/- which was the share of the assessee in the new property. The AO also initiated penalty proceeding u/s 271(1)(c) of the Act. 3. Aggrieved by the order of AO assessee filed appeal before CIT(A) who has passed an ex parte order dated 23.02.2024. The CIT(A) issued various notice(s) on 31.12.2020, 13.10.2022 and 29.01.2024. In response to the first notice, the assessee requested for adjournment till April, 2021. In response to other two notices, there w....

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.... legal heir of the assessee and requested to grant one more opportunity in the interest of justice. 5. On the other hand, Ld.Sr.DR for the Revenue supported the orders of lower authorities and stated that though assessee purchased the property at Rs. 44,00,000/-, he has claimed deduction of Rs. 1,09,34,700/-. The other expenses of Rs. 74,02,000/- was claimed to have been incurred in cash for which no proper evidences are available. The assessee has also not satisfactorily explained the source of the cash expenses. Hence, he requested to confirm the order of CIT(A). 6. We have considered the submission of both the parties and perused the materials available on record. We find that CIT(A) passed an ex parte order without giving reasonable a....