Navghanbhai Aalabhai Bharwad, , ... vs Assessee

आयकर अपीलीय अिधकरण, अिधकरण, अहमदाबाद यायपीठ ''B'', अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, "B" BENCH सव ौी ौी जी. जी.सी. सी.गु ा, माननीय उपा!य", उपा!य", एवं अिनल चतुवद ' (, (, लेखा सदःय के सम" । BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND ANIL CHATURVEDI, ACCOUNTANT MEMBER)

ITA No.1764/Ahd/2014 [Asstt.Year : 2010-2011]

Shri Navghanbhai Aalabhai Bharwad बनाम/Vs. ITO, Ward-7(1) 274/1, Mandva Valo Vas Ahmedabad. Hebatpur, Tal: Dascroi Dist. Ahmedabad. PAN : ANXPB 4194 L

(अपीलाथ. / Appellant) (ू0यथ. / Respondent)

िनधा 1रती क2 ओर से/ : Assessee by Shri Hardik Vora, AR राजःव क2 ओर से/ : Revenue by Shri Roopchand, Sr.DR सुनवाई क2 तार(ख/ : Date of Hearing 7th January, 2015 घोषणा क2 तार(ख/ : Date of Pronouncement 02-02-2015

आदे श / O R D E R

PER G.C. GUPTA, VICE-PRESIDENT: This appeal by the assessee for the Asstt.Year 2010-2011 is directed against the order of the CIT(A).

2. The grounds of the appeal of the assessee are as under: 1. On the facts and in circumstances of the case as well as law on the subject, the ld.CIT(A) has erred in confirming the disallowance of Rs.23,62,847/- on account of cost of improvement of sale of land of Chharodi while calculating short term capital gain. ITA No.1764/Ahd/2014

2. On the facts and in circumstances of the case as well as law on the subject, the ld.CIT(A) has erred in confirming the disallowance of Rs.10,00,000/- on account of payment made to confirming parties on sale of land of Bakrol.

3. On the facts and in circumstances of the case as well as law on the subject, the ld.CIT(A) has erred in confirming the addition of Rs.1,87,17,337/- on account of payment made by purchaser of property to confirming parties on sale of land of Bakrol - Badrabad.

4. On the facts and in circumstances of the case as well as law on the subject, the ld.CIT(A) has erred in confirming the addition of Rs.22,84,359/- on account of payment made by purchaser of property to confirming parties on sale of land of Bakrol.

5. On the facts and in circumstances of the case as well as law on the subject, the ld.CIT(A) has erred in confirming the addition of Rs.1,09,90,200/- as short term capital gain by treating transaction of development agreement on sale transaction of Ognaj land at Survey No.330.

6. On the facts and in circumstances of the case as well as law on the subject, the ld.CIT(A) has erred in confirming the addition of Rs.24,47,000/- as short term capital gain by treating transaction of development agreement as sale transaction of Tragad land at Survey no.43.

7. On the facts and in circumstances of the case as well as law on the subject, the ld.CIT(A) has erred in confirming the addition of Rs.90,57,500/- as short term capital gain by treating transaction of development agreement as sale transaction of Chharodi land at Block No.186.

8. On the facts and in circumstances of the case as well as law on the subject, the ld.CIT(A) has erred in confirming the addition of Rs.40,41,100/- as short te5rm capital gain by treating transaction of development agreement as sale transaction of Tragad land at survey No.128/2.

The assessee has requested for admission of additional grounds of appeal as under: -2- ITA No.1764/Ahd/2014

1. On the facts and in circumstances of the case as well as law on the subject, the ld.CIT(A) has erred in deciding appeal ex parte.

2. On the facts and in circumstances of the case as well as law on the subject, one more opportunity may please be given to assessee to represent his case before CIT(A).

3. On the facts and in circumstances of the case as well as law on the subject, the ld.CIT(A) has erred in deciding appeal without giving reasoning for the decision taken by him."

3. The learned counsel for the assessee at the outset submitted that the CIT(A) has passed ex parte appellate order due to non-attendance on behalf of the assessee on the date of hearing before him. He submitted that the assessee has filed an affidavit explaining reason for default in not appearing before the CIT(A). He submitted that all the papers were forwarded to the Chartered Accountant of the assessee, but for unknown reason he did not attend the hearing before the CIT(A). In these circumstances, the assessee appointed a new Chartered Accountant for future compliance of the income tax works. The learned counsel for the assessee requested for one more opportunity to the assessee in the peculiar facts and circumstances of the case. The learned DR has opposed the submissions of the learned counsel for the assessee. He submitted that due opportunity of hearing was granted by the CIT(A) to the assessee.

4. We have considered rival submissions and perused the orders of the AO and the CIT(A), and also contents of the affidavit filed by the assessee. We find that in the facts of the case, wherein, due to non-cooperation of the CA, the assessee has to appoint a new Chartered Accountant for all future compliance in income-tax matters, it shall be in the interest of justice to provide one more opportunity to the assessee to represent its case before the CIT(A). Accordingly, the order of the CIT(A) is restored to his -3- ITA No.1764/Ahd/2014

file with direction to pass de novo appellate order in accordance with law after allowing due opportunity of hearing to both the parties. However, we find that the assessee was also not vigilant in pursuing its matter before the CIT(A), as the CIT(A) has allowed six opportunities of hearing to the assessee, which remained unattended and the assessee was duty bound to take necessary steps to comply with the notice of hearing before the CIT(A). In these circumstances, we are of the view that it shall be appropriate to impose cost of Rs.10,000/- (Rupees Ten Thousand) on the assessee with direction to pay the same in favour of the Department by 13th January, 2015. The assessee is also directed to cooperate with the CIT(A) and appear before him suo moto within a period of 60 days from the receipt of this order to secure a date of hearing before him. We direct accordingly.

5. In the result, the appeal of the assessee is allowed for statistical purpose.

Order pronounced in Open Court on the date mentioned hereinabove.

Sd/- Sd/- अिनल चतुव'द( / ANIL CHATURVEDI) (अिनल (जी. जी.सी. सी.गु ा/G.C. GUPTA) लेखा सदःय /ACCOUNTANT MEMBER उपा!य" /VICE-PRESIDENT

Copy of the order forwarded to: 1) : Appellant 2) : Respondent 3) : CIT(A) 4) : CIT concerned 5) : DR, ITAT. BY ORDER

DR/AR, ITAT, AHMEDABAD

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