TMI Blog2022 (9) TMI 552X X X X Extracts X X X X X X X X Extracts X X X X ..... that no finding has been given by the Tax Authorities on this claim. It is seen that the legal position on two adjoining flats, if constituting a single residential unit is well settled. Recording my painful dissatisfaction and disappointment in the passing of orders of the authorities, I set aside the order for a factual verification on facts back to the file of the Assessing Officer. The prayer of the ld. Sr.DR is accepted to the extent that matter needs verification at the end of the AO. Accordingly, the impugned order is set aside back to the file of the AO with a direction to pass a speaking order in accordance with law. Needless to say that in case the assessee's prayer on facts is not to be accepted, a reasonable opportunity o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t for that assessment year is invalid and the assessment is unwarranted in the eyes of law. 4. That the Ld. CIT(A) has erred on facts and in law in dismissing the appeal of the appellant without appreciating that the approval given by the Ld. PCIT under Section 151 of the I.T.Act, 1961 is without independent application of mind. 5. That the Ld. CIT(A) has erred on facts and in law in dismissing the appeal of the appellant and in disallowing the deduction under Section 54F of the IT. Act, 1961 amounting Rs. 17,61,581 without verifying the facts and without considering the submission of the appellant. 6. That the Ld. CIT(A) has erred on facts and in law in dismissing the appeal of the appellant completely ignoring the applicabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee in filing the appeal late nor any disadvantage can be said to be visited upon the Revenue if the appeal is taken up for hearing on merits. Ordered accordingly. 4. The ld. Sr.DR was required to argue the appeal. She relied on the orders. 5. The relevant facts of the case are that qua the Long Term Capital Gain available to the assessee in the year under consideration deduction u/s 54 of the Act was claimed. The said claim was disallowed holding that the proceeds have been applied to acquiring two separate properties. The assessee has pleaded that these were adjoining properties and may be treated as a single unit in terms of various decisions available. However, the said request was not accepted. The ld. CIT(A) has dismi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s 147 of the IT Act, 1961 without specifying that how the appellant has not declared fully and truly all material facts necessary for his assessment for that assessment year. Thus the reasons recorded are invalid and the assessment is unwarranted in the eyes of law. (iv) That the Ld. CIT has erred on facts and in law in grating the approval as the approval has been granted without independent application of mind. (v) That the AO has erred on facts and in law in making the assessment at an income of Rs.21,11,011/- against the returned income of Rs.3,49,430/- after disallowing deduction of Rs.17,61,581/-. (vi) That the AO has erred on facts and in law in disallowing the deduction u/s 54F of the ' IT Act, 1961 amountin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction u/s 54F of the IT Act, 1961 treating the same as a single house as per settled position. However, the AO did not allow the deduction u/s 54F ignoring the judicial precedents from, different High Courts and added the whole amount of LTCG of Rs.17,61,581/- to the income of the assessee and assessed the income of the assessee at Rs.21,31,011/- against the returned income of Rs.3,49,430/-. (emphasis supplied) 7.2 When pleadings in the said facts is taken into consideration and the finding arrived at in para 6.2 is taken into consideration, it is seen that the ld. CIT(A) has completely ignored the facts pleaded on record. It is evident that that assessee, no doubt has purchased two separate residential houses, however, it is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whose behalf, the functionaries of the State act. In the blind race of showing high disposal the careless ignoring of facts pleaded causes unaccounted harm to the reputation and fairness of the Tax Administration. It erodes the trust and faith of the citizens in the fairness of the functioning of the tax administration. It not only causes harassment to the citizens but also reflects on the arbitrary functioning of the tax administration. Such a reputation and record should not be created. 9. Accordingly, with the above observations, the impugned order is set aside back to the file of the AO with the aforesaid directions. Said order was pronounced in the Open Court at the time of hearing itself. 10. In result appeal of the assessee is ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
