The Income Tax Appellate Tribunal ( ITAT ), Bangalore recently remanded a case pertaining to capital gains exemption claims observing that the concerned notices by the Commissioner of Income Taxes (Appeals) ( CIT(A) ) had been issued during the COVID-19 era and thus the Assessee was not aware of such issuance.
The ITAT pronounced their decision while entertaining an appeal filed by Bangalore-based Assessee, Chandanahalli Nagarajaiah Shashikiran against the Assistant Commissioner of Income Tax (ACIT) with regards to the financials of the Assessee for the Assessment Year (A.Y.) 2017-18.
Law and Procedure for Filing of Appeals
The subject-matter of the instant case arose when the AO was privy to the Assessee having received a sale consideration of Rs. 3,00,21,750/- on sale of a property against the stamp duty value of Rs.3,03,25,000/-. The AO proceeded to deny benefits under Section 54F of the Income Tax Act, 1961, vitiating the assessee’s claimed exemptions of Rs.2,87,68,621/-.
Multiple grounds were raised by the Assessee in appeal, primarily citing wrongful assessment of his total income at Rs.4,39,15,228/-, against the return of Rs.1,46,83,360/- filed by the Assessee. Furthermore, the Appellant, through Ravindra M. Hegde, CA averred that the Appellant had been kept in the dark with regards to all the proceedings against him, including the incumbency of the relevant Assessing Officer.
Law and Procedure for Filing of Appeals
In furtherance, the Assessee submitted that some of the notices served to the Assessee in this regard had been issued by the CIT(A) during the COVID-19 period and that the Assessee was not aware of them and the subsequent notices as well.
Neha Sahay, appearing for the Revenue vehemently opposed the Assessee’s plea for time averring that the Assessee had failed to respond to the notices issued by the CIT(A).
The two-member Bench of the Bangalore Income Tax Appellate Tribunal, constituted by Padmavathy S., Accountant Member and Prakash Chand Yadav, Judicial Member considered the facts and peculiar circumstances of the case and proceeded to restore the matter to the file of the concerned AO for fresh adjudication with the direction to provide reasonable opportunity to the Assessee in the interests of natural justice and fair play.
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