Decided on November 28,1994



R.M.Mehta, - (1.) THIS appeal is directed against the order passed by the CIT(A) raising for the consideration of the Tribunal on various grounds.
(2.) The learned counsel for the assessee, however, at the time of hearing stated that he was under instructions only to press the ground pertaining to the claim for deduction under Section 80C(2)(h)(ii)(b) of the Income-tax Act, 1961 and the other grounds of appeals were being withdrawn. The subsequent discussion disposes of the main issue which has been argued by the parties before the Tribunal. The appellant in this case is an Advocate who admittedly was a Member of the Lawyers Cooperative Group Housing Society Ltd., and had been allotted a flat, the construction in respect of which had not been completed during the assessment year under consideration, viz., 1990-91. It is also an admitted fact that the assessee had during the previous year under consideration paid a sum of Rs. 10,000 as an instalment to the said Group Housing Society towards the flat which had been allotted to him and claimed the same as deduction under Section 80C of the Act.
(3.) THE ITO rejected the claim for deduction on the ground that during the previous year under consideration the flat had not been completed and no income was taxable under the head "Income from house property" in the hands of the assessee. On further appeal, the DCIT(A) decided the matter ex parie and proceeded to confirm the action of the ITO primarily on the ground that the assessee had been provided sufficient opportunity to substantiate his claim but in view of the non co-operative attitude adopted by him, the disallowance made by the ITO was being upheld. As already stated, the learned counsel has not raised any argument vis-a-vis the lack of opportunity on the part of the DCIT(A) or in proceeding to decide the matter exparte. Thus, the parties stated before me that the matter need not be restored back to the DCIT(A) and the legal issue raised in the appeal be decided on merits.;

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