MACHHINDRA ISHWARCHAND SARODE,PUNE V. INCOME TAX OFFICER, WARD THIRTEEN(FOUR), PUNE

ITA 1746/PUN/2025

AI Insights

The case involves Machhindra Ishwarchand Sarode, the appellant, contesting an assessment order for the Assessment Year 2018-19, which was passed under section 147 of the Income Tax Act, 1961. The assessment included an addition of Rs. 7.00 lakh due to a difference in stamp duty value as per section 56(2)(x)(b)(B) of the Act. The appellant challenged the validity of the re-assessment proceedings, arguing that the addition was not related to the issue for which the re-assessment was carried out. The CIT(A) dismissed the appeal without addressing the legal issue and affirmed the Assessing Officer's order. The Tribunal, referencing a decision from the Delhi High Court in 'Divine Infracon Pvt. Ltd. Vs PCIT', held that it lacked jurisdiction to decide on grounds not arising from the first appellate authority's order and thus restored the matter to the CIT(A) for a comprehensive adjudication.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 785891 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Appeal Filed On: 21-07-2025
• Other Referred Cases: Divine Infracon Pvt. Ltd. Vs PCIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJITESH MEENA
• Keywords: Set aside; Reasonable cause; Sale consideration of property below Jantri Value

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “SMC”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.1746/PUN/2025 Assessment Year : 2018-19 Machhindra Ishwarchand Sarode, 01 Pune Nagar Road, Shirur S.O., Pune Saradwadi – 412 220 Maharashtra PAN : DGTPS0437R Vs. Income Tax Officer, Ward-13(4), Pune Appellant Respondent आदेश / ORDER The captioned appeal at the instance of assessee pertaining to Assessment Year 2018-19 is directed against the order dated 16.05.2025 of National Faceless Appeal Centre, Delhi emanating out of Assessment order dated 31.03.2023 passed u/s.147 of the Income Tax Act, 1961. 2. When the case called for, none appeared on behalf of the assessee despite due service of notice of hearing. Even on the previous date of hearing fixed on 20.08.2025 neither the assessee nor any of his Authorised Representative represented the assessee. I therefore proceed to adjudicate the appeal exparte qua assessee with the assistance of ld. Departmental Representative and material available on record. Appellant by : None Respondent by : Shri Ajitesh Meena Date of hearing : 14.10.2025 Date of pronouncement : 29.10.2025 Printed from counselvise.com ITA No.1746/PUN/2025 Machhindra Ishwarchand Sarode 2 3. I have heard ld. DR and perused the record placed before me. I note that the assessee is an individual and assessment for A.Y. 2018-19 has been concluded u/s.147 of the Act on 31.03.2023 wherein addition of Rs.7.00 lakh has been made on account of difference of stamp duty value in terms of provisions of section 56(2)(x)(b)(B) of the Act. I further notice that before ld.CIT(A) assessee raised legal ground challenging the validity of the re-assessment proceedings on the ground that ld. Assessing Officer has not made addition on the issue for which the re-assessment proceedings has been carried out. I further note that ld.CIT(A) has not dealt with this legal issue and has dismissed the assessee’s appeal by dealing with merits of the case and had merely affirmed the order of the ld. Assessing Officer. 4. Before this Tribunal also, assessee has raised the legal issue in Ground No.1 stating that notice u/s.148 of the Act is without jurisdiction and this ground was never raised before ld.CIT(A) 5. The issue of Tribunal’s power to adjudicate the ground raised before it in second appeal which did not pass through first appeal came for consideration before the Hon’ble Delhi High Court in the case of ‘Divine Infracon Pvt. Ltd. Vs PCIT’ [2025, 171 taxmann.com 92 (Del)], wherein their Hon’ble Lordship vide para 13 have categorically held that, the Tribunal has no jurisdiction to proceed to decide the ground which did not arise from the impugned order passed by first appellate authority, irrespective of such ground was raised in first appeal or not. Printed from counselvise.com ITA No.1746/PUN/2025 Machhindra Ishwarchand Sarode 3 6. For the aforestated reason, I deem it fit to set-aside the impugned order and restore the matter back to the file of Ld. CIT(A) to adjudicate the issues raised in the instant appeal before this Tribunal and then decide them in accordance with law by way of passing a speaking order as contemplated u/s.250(6) of the Act. Needless to mention that in the set aside proceedings ld.CIT(A) shall afford reasonable opportunity of hearing to the assessee. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Effective grounds raised by the assessee are allowed for statistical purposes. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on this 29th day of October, 2025. Sd/- (MANISH BORAD) ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 29th October, 2025. Satish आदेश क\u0002 \u0003ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. \u000eयथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “SMC” ब\u0014च, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. Printed from counselvise.com "