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2021 (11) TMI 627 - ITAT MUMBAIClassification of capital gain - LTCG or STCG - Non consider the cost of acquisition/indexed cost of acquisition of the property in question while computing the capital gain - HELD THAT:- Admittedly, there can be no second thought on the fact that the assessee had consistently adopted a lackadaisical approach and had neither complied with the directions of the AO nor appeared before the CIT(A). The conduct of the assessee was no better, and as observed by us hereinabove he had failed to participate in the course of the appellate proceedings before us. Be that as it may, we find substance in the claim of the assessee that as the CIT(A) had not only declined his request for adjournment, but had also not considered the submissions which were filed by him along with Form No. 35 on the e-portal of the Department, therefore, he was not afforded sufficient opportunity of being heard. We find that it is the claim of the assessee that the CIT(A) had not only wrongly classified the sale transaction as STCG, as against the LTCG, but had also erred in not directing the AO to consider the cost of acquisition/indexed cost of acquisition of the property in question while computing the capital gain. In the backdrop of the aforesaid facts, we though deprecate the conduct of the assessee who had throughout been non-cooperative, but cannot remain oblivious of the fact that there are certain infirmities arising from the order of the CIT(A) as regards the mode and manner of quantification of the income resulting from the sale of the property in question. We, thus, in all fairness are of the considered view that the matter requires to be re-visited by the AO, who is directed to re-adjudicate the issue after affording an opportunity of being heard to the assessee.AO shall in the course of the de novo assessment proceedings allow an opportunity of being heard to the assessee who shall remain at liberty to substantiate his claim on the basis of supporting documentary evidence/material - Appeal filed by the assessee is allowed for statistical purposes.
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