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Judgment
PER VIKAS AWASTHY, JUDICIAL MEMBER:
This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 08.01.2026 for Assessment Year 2019-20.
The assessee in appeal has assailed the addition of Rs.41,24,680/- made on account of interest received u/s.28 of the Act of Land Acquisition Act on enhanced compensation and disallowance of deduction of Rs.25,258/- claimed u/s 80C of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).
Shri V. Rajakumar, appearing on behalf of the assessee submits that the Assessing Officer (AO) erred in treating interest received on enhanced compensation as taxable income under the head “Income from Other Sources”. The ld. Counsel further submitted that the assessee had claimed exemption u/s.80C of the Act in respect of payment of Insurance Premium. The AO without appreciating facts and documents on record disallowed exemption claimed u/s.80C of the Act to the extent of Rs.25,258/-. The assessee carried the issue in appeal before the CIT(A). The assessee could not properly pled his case before the First Appellate Authority. The CIT(A) without proper appreciation of facts and documents on record dismissed appeal of the assessee.
Per contra, Shri Manoj Kumar, representing the Department supporting the impugned order prayed for dismissing appeal of the assessee.
Both sides heard, orders of the authorities below examined. A perusal of the impugned order reveals that the assessee had raised multiple grounds challenging additions made in the assessment order. The assessee had also placed reliance on judicial precedents in support of his contentions. A perusal of impugned order shows that the CIT(A) in the order has reproduced the assessment order and thereafter has quoted the case laws. The CIT(A) without referring to the documents on record and without stating as to how the case laws referred to in the order applies to the case of assessee has dismissed appeal of assessee. Considering facts of the case, I deem it appropriate to restore appeal back to the CIT(A). The CIT(A) after considering the contentions raised by the assessee, and judicial precedents relied upon, and shall decide the appeal afresh, after affording reasonable opportunity of making submissions to the assessee, in accordance with law.
In the result, impugned order is set aside and appeal of the assessee is allowed for statistical purposes.