MR BHUPENDRA KANTILAL UPADHYAYA,PUNE V. ITO WARD -2(3), PUNE, PUNE

ITA 1219/PUN/2024

AI Insights

The case involves an appeal by Bhupendra Kantilal Upadhyaya against the order of the Addl/JCIT(A)-1, Kolkata, which was framed under section 250 of the Income-tax Act, 1961, arising from an assessment order passed under section 143(3) of the Act. The primary contention in the appeal was the validity of the reassessment proceedings and the additions made under section 68 of the Act concerning alleged bogus long-term capital gains from the sale of equity shares. Additionally, the assessee raised a significant issue regarding the denial of an opportunity for a personal hearing, which was specifically requested but not granted, leading to the appellate order being deemed invalid and bad-in-law.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312609 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHISHEK MESHR AM
• Assessee Lawyers: PIYUSH BAFNA
• Keywords: Set aside; Reassessment proceedings; Capital Gains; Principle of natural justice; Bogus

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “SMC”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / ITA No.1219/PUN/2024 Assessment Year : 2011-12 Bhupendra Kantilal Upadhyaya, Flat No. B 303, Plot No.9/1, Ramnagar Colony, Bavdhan, Pune 411 021, Maharashtra PAN : AAAPU3638C Vs. ITO, Ward-2(3), Pune Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal at the instance of assessee relating to A.Y. 2011-12 is directed against the order dated 28.03.2024 framed by Addl/JCIT(A)-1, Kolkata u/s.250 of the Income-tax Act, 1961 (in short ‘the Act’) arising out of Assessment Order dated 29.12.2018 passed u/s.143(3) of the Act. 2. On perusal of the grounds, we notice that apart from raising the grounds challenging the validity of reassessment proceedings, and the additions made u/s.68 of the Act on account of bogus long term capital gains of Rs.10,80,352/- from sale of Equity shares of DMC Education Ltd. and VAS Infrastructure Ltd., the assessee has also raised ground No.2.1 stating that there is denial of opportunity of personal hearing which reads as follows : Appellant by : Shri Piyush Bafna Respondent by : Shri Abhishek Meshram Date of hearing : 12.02.2025 Date of pronouncement : 02.05.2025 ITA No.1219/PUN/2024 Bhupendra Kantilal Upadhyaya 2 “2. Denial of opportunity of personal hearing: 2.1. On the facts and in the circumstances of the case and without prejudice to other grounds, the appellate order passed by Ld. CIT-Appeal is invalid and bad-in-law since the same was passed without providing an opportunity of personal hearing despite the same being specifically requested by the Appellant and therefore, the order passed by Ld. CIT-Appeal u/s 250 may please be set aside.” 3. Though the assessee has made submissions on various issued on merits as well as legal issues and also filed detailed written submissions, we find that considering the principles of natural justice, assessee deserves an opportunity of personal hearing through virtual mode/physical mode as provided under the Act which has been requested by the assessee. We also notice that in the impugned order ld. CIT(A) while dismissing the appeal of the assessee has stated that appellant has neither filed any satisfactory explanation on the issue nor he has filed any documentary evidence in this regard during the appellate proceedings. Considering this fact, we deem it appropriate to restore the issues raised in the instant appeal on legal as well quantum addition to the file of ld.CIT(A) before whom assessee shall furnish all the requisite details which have been placed in the paper book filed before this Tribunal and ld.CIT(A) shall give reasonable opportunity of hearing and after considering the submissions of the assessee shall decide in accordance with law by passing a speaking order as contemplated u/s.250(6) of the Act. Effective grounds of appeal raised are allowed for statistical purposes. ITA No.1219/PUN/2024 Bhupendra Kantilal Upadhyaya 3 4. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced on this 02nd day of May, 2025. Sd/- Sd/- (ASTHA CHANDRA) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 02nd May, 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. "