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2017 (5) TMI 1422 - AT - Income TaxBest judgment assessment - non opportunity of being heard - Held that:- Admittedly, the assessment was framed consequent to the directions issued by the Additional CIT and as per the directions, claim of the assessee for computing the long term capital gain was to be rejected and it was to be computed as a short term capital gain, meaning thereby that the directions of the Additional CIT was prejudicial to the assessee and before the issue of the same, an opportunity of being heard should have been afforded to the assessee as per the proviso to section 144A of the Act. Unfortunately the Additional CIT has not afforded any opportunity of being heard before issuing such directions. Thus it is of the view that capital gain computed pursuant to the directions of the Additional CIT deserves to be set aside. Accordingly set aside the order of the AO passed consequent to the directions of the Additional CIT for computing the capital gain and restore the matter to the file of the AO to recompute the capital gain after affording an opportunity of being heard to the assessee. If the AO feels that the direction of Additional CIT is to be complied with, he may place the matter before the Additional CIT to first afford opportunity of being heard to the assessee and then readjudicate the issue afresh and directions be issued thereafter. Accordingly, the appeal of the assessee is allowed for statistical purposes.
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