HARIKKISAN SHANKAR CHAVAN ,PUNE V. ITO, WARD 3(3), PUNE, PUNE

ITA 39/PUN/2025

AI Insights

The case involves Harikisan Shankar Chavan, the appellant, who appealed against the ex-parte order of the Ld. CIT(A) / NFAC, which dismissed his appeal due to non-prosecution and sustained various additions made by the Assessing Officer for the assessment year 2018-19. The Assessing Officer had reopened the assessment under section 147 of the Income Tax Act, 1961, due to non-filing of the return and substantial transactions in immovable property. The Tribunal found that the Ld. CIT(A) did not decide the appeal on its merits and did not provide adequate opportunities for the appellant to present his case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312466 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHRADDHA NICHAL
• Assessee Lawyers: DIGAMBAR SURWASE VIRTUAL
• Section: 147; 148; 144

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA No.39/PUN/2025 Assessment year : 2018-19 Harikisan Shankar Chavan Flat No.404, 4th Floor, DWI Crosscoyer Country, Wadgaon Khurd, Pune – 411041 Vs. ITO, Ward 3(3), Pune PAN: AARPC5275A (Appellant) (Respondent) Assessee by : Shri Digambar Surwase (Virtual) Department by : Smt Shraddha Nichal Date of hearing : 30-04-2025 Date of pronouncement : 30-04-2025 O R D E R PER R. K. PANDA, VP : This appeal filed by the assessee is directed against the ex-parte order dated 13.12.2024 of the Ld. CIT(A) / NFAC, Delhi relating to assessment year 2018-19. 2. Although a number of grounds have been raised by the assessee, however, these all relate to the ex-parte order of the Ld. CIT(A) / NFAC in dismissing the appeal filed by the assessee on account of non-prosecution and thereby sustaining the various additions made by the Assessing Officer. 3. Facts of the case, in brief, are that the assessee is an individual and has not filed his return of income for the year under consideration. As per information 2 ITA No.39/PUN/2025 available on insight portal, it was found that the assessee has carried out transaction in purchase of immovable property for a consideration of Rs.4,32,21,800/-. The Assessing Officer, therefore, after recording reasons, reopened the assessment u/s 147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) and accordingly notice u/s 148 of the Act was issued on 13.04.2022. However, there was non-compliance to the said notices. The Assessing Officer, therefore, proceeded to complete the assessment u/s 144 of the Act. Accordingly a notice u/s 144 of the Act dated 05.12.2023 was issued fixing the case for hearing on 12.12.2023 and asking the assessee to explain as to why his case may not be assessed as per best judgment u/s 144 of the Act. The assessee in response to the same made part compliance. After considering such part compliance and in absence of complete details furnished by the assessee, the Assessing Officer completed the assessment determining the total income of the assessee at Rs.5,40,95,994/- being the investment of Rs.4,95,00,000/- towards purchase of immovable property, Rs.1,08,67,057/- being deposits in the bank account including cash deposits and Rs.7,137/- being interest income. 4. Since the assessee despite number of opportunities granted did not make any submission before the Ld. CIT(A) / NFAC, the Ld. CIT(A) / NFAC in the ex-parte order passed by him dismissed the appeal on account of non-prosecution. 5. Aggrieved with such order of the Ld.CIT(A) / NFAC, the assessee is in appeal before the Tribunal. 3 ITA No.39/PUN/2025 6. The Ld. Counsel for the assessee submitted that adequate opportunity was not granted by the Ld. CIT(A) / NFAC. Further, he has not passed a speaking order as per the provisions of section 250(6) of the Act. He accordingly submitted that in the interest of justice, the assessee should be given an opportunity to substantiate his case before the Ld. CIT(A) / NFAC. 7. The Ld. DR on the other hand strongly opposed the above arguments advanced by the Ld. Counsel for the assessee. She submitted that the assessee before the Assessing Officer did not make any submission to substantiate the source of investment in immovable property and cash deposits and other deposits in the bank account. Further, the assessee has not filed any submission before the Ld. CIT(A) / NFAC despite three opportunities granted and there was no compliance. Under these circumstances, the order of the Ld. CIT(A) / NFAC should be upheld and the grounds raised by the assessee be dismissed. 8. We have heard the rival arguments made by both the sides, perused the orders of the Assessing Officer and Ld. CIT(A) and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us. It is an admitted fact that despite service of notice u/s 148 of the Act, the assessee did not file any return of income. In response to the notice u/s 144 issued by the Assessing Officer, the assessee made only part compliance and source of investment towards purchase of immovable property and deposit of cash in the 4 ITA No.39/PUN/2025 bank account were not explained properly for which the Assessing Officer made the addition. We find since the assessee did not make any compliance before the Ld. CIT(A) / NFAC despite three opportunities granted, the Ld. CIT(A) / NFAC dismissed the appeal filed by the assessee. It is the submission of the Ld. Counsel for the assessee that given an opportunity, the assessee is in a position to substantiate his case by filing the requisite details before the Ld. CIT(A) / NFAC. Further, the Ld. CIT(A) / NFAC has not adjudicated the issue on merit as prescribed under the provisions of section 250(6) of the Act which reads as under: “250(1). … (6) The order of the [Joint Commissioner (Appeals) or the] Commissioner (Appeals) disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reason for the decision.” 9. Since it is the submission of the Ld. Counsel for the assessee that given an opportunity, the assessee is in a position to substantiate his case by filing the requisite details before the Ld. CIT(A) / NFAC and since the Ld. CIT(A) / NFAC has not decided the appeal on merit as per the provisions of section 250(6) of the I.T. Act, 1961, therefore, considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. CIT(A) / NFAC with a direction to decide the appeal on merit by passing a speaking order. The assessee is also hereby directed to appear before the Ld. CIT(A) / NFAC on the appointed date and make his submissions, if any, without seeking any adjournment under any pretext failing which the Ld. CIT(A) shall be 5 ITA No.39/PUN/2025 at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes. 10. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 30th April, 2025. Sd/- Sd/- (ASTHA CHANDRA) (R. K. PANDA) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; दिन ांक Dated : 30th April, 2025 GCVSR आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपीलार्थी / The Appellant; 2. प्रत्यर्थी / The Respondent 3. 4. The concerned Pr.CIT, Pune DR, ITAT, ‘A’ Bench, Pune 5. गार्ड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधिकरण ,पुणे / ITAT, Pune 6 ITA No.39/PUN/2025 S.No. Details Date Initials Designation 1 Draft dictated on 30.04.2025 Sr. PS/PS 2 Draft placed before author 30.04.2025 Sr. PS/PS 3 Draft proposed & placed before the Second Member JM/AM 4 Draft discussed/approved by Second Member AM/AM 5 Approved Draft comes to the Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr. PS/PS 7 Date of uploading of Order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order "