Assessee had sold several agricultural plots and showed sale consideration as agricultural income and claimed same as exempt from tax under head capital gains. In response to notice u/s.143(2) various queries were raised and replies were filed. After considering the replies assessment order is passed u/s.143(3) denying exemption. The assessee challenged the order by writ on the ground that no personal hearing was given. Dismissing the petition the Court held that there was no any prejudice caused to assessee through denial of a personal hearing. Accordingly the writ petition is dismissed. (AY. 2016 -17 )
Parakkadavil Mohammed Kunju Ansari. v. ITO ( 2019) 112 taxmann.com 73/(2020) 268 Taxman 6/ 196 DTR 433 (Ker) (HC)
S. 143(3) : Assessment–Natural justice- Opportunity of hearing – Agricultural income– Capital gains-Notice given-Reply furnished by the assessment- Assessment order passed denying the exemption without giving personal hearing–Order is not bad in law–No prejudice caused to the assessee through denial of personal hearing. [S. 2(IA), 10(1), 143(2), Art. 226]