Sameer Bahadur vs Income Tax Officer

PER NAVEEN CHANDRA, A. M.:

The appeal of the assessee is directed against the order of the ld National Faceless Appeal Centre (NFAC), Delhi dated 10.07.2025 pertaining to AY 2016-17.

None appeared on behalf of the assessee. We decided to hear ex-parte with able assistance of the ld DR. We heard the ld DR at length and perused the materials on record. The assessee has filed an appeal contesting the order passed u/s 147/144.

The core issue in the case is claim of exemption u/s 54 of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’).

The ld DR pointed out that the reassessment order was passed u/s 147 read with Section 144 and 144B and the assessee’s grievance is that the materials evidenced on record were not properly appreciated violating the principles of natural justice.

Per contra the ld DR relied on the orders of the authorities below.

We have heard the rival submissions and have perused the material available on record. We find that the issue involved in the case for adjudication is exemption claimed u/s 54 of the Act. The AO has passed an order against the assessee u/s 144. We are of the considered view that the AO ought to have granted adequate opportunity of hearing. We, therefore, of the considered view that in the interest of natural justice, the issue of exemption u/s 54 be remitted back to the file of the AO. The AO is directed to afford three effective opportunities to the assessee and thereafter, examine the materials evidenced on record and adjudicate the issue afresh. The assessee is alsod directed to avail the opportunities and furnish requisite documents/evidence as required by the AO. Ground of the assessee is allowed for statistical purposes.

In result, the appeal of the assessee in ITA No. 5554/Del/2025 is allowed for statistical purpose.