2021 (6) TMI 137 - ITAT DELHI - Income Tax

Head Note / Extract:
Disallowance of the exemption u/s 54 - capital gain taxable for the Assessment Year relevant - CIT(A) who sustained the findings of Assessing Officer and dismissed the appeal filed by the assessee - HELD THAT:- From the finding of the Assessing Officer, it is clear that one part of the direction was considered and another part regarding re-opening of the assessment or taxability of the correct Assessment Year was not considered. AO has failed to give appeal effect and Ld.CIT(A) mechanically sustained the finding of the Assessing Officer without giving any reason as to why the direction of Ld.CIT(A) regarding re-opening of the assessment for the purpose of taxability could not be given effect to. Under these undisputed facts, the finding of Ld.CIT(A) cannot be sustained, therefore, the impugned order is set aside. The Assessing Officer is hereby directed to give effect to the order of the Ld.CIT(A) in accordance with law. It is clarified that the Assessing Officer would be at liberty to re-open the assessment for the relevant Assessment Year as directed by the Ld.CIT(A) in the original appellate proceedings if law so permit. The grounds raised by the assessee are allowed in terms as indicated above. Thus, Grounds raised by the assessee are allowed.