GURU NANAK BUILDERS AND DEVELOPERS ,PUNE V. NATIONAL FACELES APPEAL CENTRE (NFAC), PUNE

ITA 1881/PUN/2024

AI Insights

The case involves Guru Nanak Builders and Developers, a partnership firm, appealing against the order of the CIT(A) NFAC, which upheld the addition of Rs. 76,02,600 as unexplained capital contributions from two partners during the assessment year 2016-17. The firm, established in November 2015, faced scrutiny over the sources of capital contributions from partners Smt. Raji N. Kataria and Shri Santkumar R. Budhani. The Tribunal admitted additional evidence concerning the financial activities of the partners and the registration of a proprietary concern, remanding the matter back to the JAO for a detailed examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 716718 (ITAT-PUNE)
• Duration Of Justice: 11 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2016-2017
• Appeal Filed On: 10-09-2024
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAMNATH P MURKUNDE
• Assessee Lawyers: HARI KRISHAN; MISS
• Keywords: Additional evidence; Reasonable cause
• Section: 143(3)

Judgement Text

" आयकर अपीलीय अधिकरण \"ए \"न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL \"A\" BENCH, PUNE BEFORE Dr. MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं / ITA No.1881/PUN/2024 धििाारण वर्ा /Assessment Year: 2016-17 Guru Nanak Builders and Developers S. no. 232/1, Opp. Dena Bank, Pune Nashik Road Bhosari, Pune-411039 Maharashtra PAN-AAPFG0635A Vs. NFAC, Pune अपीलार्थी / Appellant प्रत्यर्थी/Respondent Assessee by: Shri Hari Krishan & Miss Arrchena Shetty Department by: Shri Ramnath P Murkunde Date of hearing: 07-08-2025 Date of Pronouncement: 22-08-2025 आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER:- This appeal at the instance of assessee is directed against the order of Ld. CIT(A) NFAC dated 13.07.2024 framed u/s 250 of the Income Tax Act 1961 for A.Y. 2016-17 which is arising out of Assessment Order u/s 143(3) of the Act dated 27.12.2018 framed by the Income Tax Officer, ward 8(2), Pune. 2. The effective grounds of appeal are raised against the addition made by Assessing Officer (AO) u/s 68/69 of the Act at Rs. 76,02,600/- being the unexplained amount received from the partners. Printed from counselvise.com 2 ITA No.1881/PUN/2024 3. At the outset Ld. Counsel for the assessee submitted that A.Y. 2016-17 i.e. F.Y. 2015-16 is the first year of the partnership firm as it is incorporated on 01.11.2015. The partners contribution to the capital account is Rs. 2,63,52,600/- and land has been purchased during the year and there is no other transaction. Out of the total partnership capital contribution Ld. AO is not satisfied with the source of capital contribution of Rs. 22,00,000/- and Rs. 54,02,600/- received from Smt. Raji N. Kataria and Shri Santkumar R. Budhani respectively. He further referred to the application for admission of additional evidence placed at Paper Book page No. 66-88 and stated that if an opportunity is granted and the additional evidence are examined by the AO the assessee is hopeful to satisfy the AO to explain the nature and source of the alleged sum received from the partners. 4. Ld. Departmental Representative (DR) supported the order of the lower authorities. 5. We have heard rival contentions and perused the record placed before us. The impugned addition is only with regard to the capital contribution from two partners namely Smt. Raji N. Kataria Rs. 22,00,000/- and Mr. Santkumar R. Budhani Rs. 54,02,600/- Before both the lower authorities assessee has failed to explain the nature and source of the alleged sum to the satisfaction of Ld. CIT(A) as well as Ld. AO. Before us additional evidence in the form of registration of M/s Budhani Enterprises as proprietary concern of Shri Santkumar Budhani and Cash Book of Smt. Raji N. Kataria for F.Y. 2014-15 and F.Y. 2015-16 has been filed with the prayer to admit the additional evidence and restore the issue back to the file of Ld. Jurisdictional Assessing Officer (JAO). Ld. DR has objected to this request of Ld. Counsel of assessee. Printed from counselvise.com 3 ITA No.1881/PUN/2024 We however considering that the additional evidence goes to the root cause of the issue under consideration, therefore we admit the additional evidence and remit them back to the file of Ld. JAO to decide the issue under consideration in accordance with law. Needless to mention that proper opportunity of hearing shall be granted to the assessee. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Effective grounds of appeal raised by the assessee are allowed for statistical purposes. 6. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced on this 22nd day of August, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे/ Pune; ददिांक /Dated: 22nd August, 2025. Neeta आदेश की प्रधिधलधप अग्रेधर्ि /Copy of the Order forwarded to: 1.अपीलार्थी / The Appellant. 2.प्रत्यर्थी / The Respondent. 3.The Pr. CIT concerned. 4.धवभागीय प्रधिधिधि, आयकर अपीलीय अधिकरण, \"A\" बेंच, पुणे / DR, ITAT, \"A\" Bench, Pune. 5.गार्ा फाइल / Guard File. आदेशािुसार / BY ORDER, //True Copy // Senior Private Secretary आयकर अपीलीय अधिकरण, पुणे /ITAT, Pune. Printed from counselvise.com "