TMI Blog2020 (9) TMI 866X X X X Extracts X X X X X X X X Extracts X X X X ..... di alterem partem are considered the two limbs of natural justice and passing of speaking order or reasoned order is considered as a third limb of natural justice. Characteristics of a speaking order is that, it should contain adequate and sufficient reasons in support of the decision. The principles of nature justice and fair play inaction requires recording of reasons and as per the order passed by the ld. CIT(A) while rejecting the application of the assessee U/s 154 we see that the ld. CIT(A) has not passed any reasoned or speaking order . Be that as it may, taking into consideration the legal proposition as discussed by us above, we restore the matter back to the file of the ld. CIT(A) to be adjudicated and decided application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raised in the application u/s 154 filed before the ld. CIT(A) may kindly be decided by the Hon ble Tribunal. 2. The hearing of the appeal was concluded through video conference in view of the prevailing situation of Covid-19 Pandemic. 3. The main grievance of the assessee raised in this appeal relates to dismissing of application moved u/s 154 of the Act by the ld. CIT(A) without giving him proper opportunity of hearing. 4. Facts in brief are that the assessee had not filed her return of income for the year under consideration as she had sold an immovable property for ₹ 7,25,000/- which for stamp duty purpose was assessed by the Sub-Registrar at ₹ 10,54,000/-. Accordingly, A.O. issued notice U/s 148 of the Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ortunity of hearing. The ld. AR in this respect, relied upon the submissions made by him before the ld. CIT(A) whereby the ld AR had pointed out the legal as well as factual mistakes in the order passed by the ld. CIT(A). The submissions made by the ld. AR before the ld. CIT(A) while arguing his application U/s 154 of the Act are reproduced below. From the facts stated above, it can be noted that assessee has specifically pointed out two mistakes. The first is a legal mistake and second is a factual mistake. Each of these mistakes as borne out from the record is explained hereunder:- Legal Mistake (a) The Supreme Court in case of GKN Driveshaft India Pvt. Ltd. Vs. ITO 259 ITR 19 has held that once the assessee has filed objections ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 377; 15,500/- per bigha by considering it to be irrigated land whereas the land is a barani land for which the applicable rate is ₹ 11,000/- per bigha, i.e. ₹ 7,48,000/- (68*11,000) (PB 32-33 of Paper Book-I). (c) Since the assessee has sold it within 2 years with no intention to hold it as a capital asset, it has declared income of ₹ 1,84,490/- as business income (PB 16 of Paper Book-I). However, the AO has considered it to be a long term capital asset whereas it is a short term capital asset even if the contention of AO is to be accepted. Further, the deemed value u/s 50C of ₹ 10,54,000/- is included in income without reducing the cost of acquisition and the income from business declared by the assessee. These f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee U/s 154 of the Act. We noticed that the ld. CIT(A) has not passed any speaking order in respect of the mistakes pointed out by the assessee. As per assessee, there was legal as well as factual mistakes in the order passed by the ld. CIT(A) which were pointed out by the assessee and the same has already been reproduced in the written submissions of the assessee mentioned above. In our view, passing a speaking order or reasoned order is considered as third limb of natural justice. As per India legal system, the maxims Nemo debet esse judex in propria causa and Audi alterem partem are considered the two limbs of natural justice and passing of speaking order or reasoned order is considered as a third limb of natural just ..... X X X X Extracts X X X X X X X X Extracts X X X X
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