The Non-compliance with the notice issued for hearing, as the assessee is not well versed with electronic gadgets, the Surat Bench of the Income Tax Appellate Tribunal (ITAT) restored the matter for a fair hearing.
Nisha Vrateen Vaish, the assessee challenged the impugned order passed by the NFAC/CIT(A) on 15.12.2021. The Assessing Officer made treated the long-term capital gains (LTCG ) on the sale of the script of Vax Housing Finance Corporation Limited of Rs.6,45,597/- as bogus LTCG entry. The Assessing Officer also added a commission paid to the operator @ 2% of the LTCG. The NFAC/CIT(A) upheld the addition in ex parte order by taking view that three notices were served through the ITBA portal but none of the notices was compiled by the assessee.
Shri Rasesh Shah,the Authorised Representative of the assessee stated that in all three cases NFAC/ CIT(A) passed all the orders in ex parte proceedings and dismissed all the appeals without adjudicating the grounds of appeals on merit. The assessee was not given fair and proper opportunities of hearing to the assessee. Further submitted that as the assessee was not well versed with the electronic gadgets raised, failed to find out the notices issued to her. The assessee notices were allegedly issued only through the ITBA portal.
On the other hand, Shri Vinod Kumar, the Senior departmental representative (Sr-DR) for the Revenue opposed the contentions of the assessee and argued that the assessee was given sufficient and reasonable opportunities for hearing, however, the assessee failed to make any compliance despite the service of three consecutive days and now the assessee does not deserve the further opportunity.
A Coram of Shri Pawan Singh, judicial member and Dr Arjun Lal Saini, accountant member observed that the order of NFAC/CIT(A) was not bythe mandate of Section 250(6) of the Income Tax Act,1961. Section 250(6) of the Act mandates that the CIT(A) while deciding the appeal is required to pass an order on points of determination (grounds of appeals), decision therein on and reasons for such decision.
The bench viewed that the assessee deserves a hearing on merit and the grounds of appeal raised by the assessee are restored to the file of NFAC/CIT(A) to adjudicate on merit. The assessee is also directed to appear before NFAC/CIT(A) as and when the date of hearing and to provide all necessary evidence & information without any further delay and not to seek adjournment without any valid reasons. The appeal of the assessee was allowed for statistical purposes.
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