MR. GIRISH KISANDAS MEHTA,PUNE V. ITO WARD 9 (3), PUNE

ITA 1259/PUN/2025

AI Insights

The case involves Mr. Girish Kisandas Mehta, who appealed against the order of the Ld. CIT(A)/NFAC concerning the assessment year 2018-19. The primary contention was the validity of the assessment proceedings initiated under section 147 of the Income-tax Act, 1961, without the necessary approval under section 151(ii). Additionally, the appellant contested the additions made to his income regarding short-term capital gains and disallowance of deductions under section 80C. The Tribunal noted the absence of adjudication on merits by the Ld. CIT(A) due to the non-prosecution of the appeal by the assessee and referenced a Bombay High Court judgment which emphasized the obligation of the CIT(A) to decide on the merits regardless of the appellant's prosecution of the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 824457 (ITAT-PUNE)
• Duration Of Justice: 7 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Appeal Filed On: 15-05-2025
• Other Referred Cases: CIT vs. Premkumar Arjundas Luthra (2016) 69 taxmann.com 407 (Bombay)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N. C. SHILPA
• Assessee Lawyers: BHUVANESH KANKANI
• Keywords: Set aside; Capital asset; Additional evidence; Question of law
• Section: 147; 148; 142(1); 139; 2(14); 80C

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.1259/PUN/2025 िनधाŊरण वषŊ / Assessment Year : 2018-19 Mr. Girish Kisandas Mehta, Mehta Niwas Bhairavnath Nagar, Kusgaon, Lonavala, Maval, Pune- 410401. PAN : AKEPM3983A Vs. ITO, Ward-9(3), Pune. Appellant Respondent आदेश / ORDER PER VINAY BHAMORE, JM: This appeal filed by the assessee is directed against the order dated 17.03.2025 passed by Ld. CIT(A)/NFAC for the assessment year 2018-19. 2. The appellant has raised the following grounds of appeal :- “1. On the facts and circumstances prevailing in the case and as per provisions and scheme of the Income-tax Act, 1961 ('The Act') it be held that the Assessment Proceedings initiated u/s 147 of the Act are invalid since the requisite approval/sanction u/s 151(ii) of the Act is not taken. Accordingly, the Assessment Proceedings so initiated be kindly annulled and Appellant be granted just and proper relief in this respect. Assessee by : Shri Bhuvanesh Kankani Revenue by : Smt. N. C. Shilpa Date of hearing : 17.11.2025 Date of pronouncement : 29.12.2025 Printed from counselvise.com ITA No.1259/PUN/2025 2 2. Without prejudice to other grounds and on facts and circumstances prevailing in the case and as per provisions and scheme of the Act it be held that the addition of Rs. 58,00,000/- so made by Ld. AO and that upheld by Ld. CIT(A)-NFAC is incorrect and not according to the provisions of the Act. Accordingly, the additions so made by Ld. AO and that upheld by Ld. CIT(A)-NFAC be kindly deleted and appellant be granted just and proper relief in this respect. 3. Without prejudice to other grounds and on facts and circumstances prevailing in the case and as per provisions and scheme of the Act it be held that the addition of Rs. 92,665/- so made by Ld. AO and that upheld by Ld. CIT(A)-NFAC is incorrect and not according to the provisions of the Act. Accordingly, the additions so made by Ld. AO and that upheld by Ld. CIT(A)-NFAC be kindly deleted and appellant be granted just and proper relief in this respect. 4. Without prejudice to other grounds and on the facts and circumstances prevailing in the case and as per provisions and scheme of the Act it be held that Ld. CIT(A)-NFAC erred in dismissing the Appeal without adjudicating the facts available on record. Accordingly, the order so passed be kindly set aside and Appellant be granted just and proper relief in this regard. 5. Without prejudice to other grounds and on the facts and circumstances prevailing in the case and as per provisions and scheme of the Income-tax Act, 1961 ('The Act') it be held that the Assessment Proceedings so initiated is not in accordance with the provisions of the Act. Accordingly, the Assessment Proceedings so initiated be kindly annulled and Appellant be granted just and proper relief in this respect. 6. It is humbly prayed that the Appellant be kindly allowed to file any additional evidences in the interest of justice, if any. 7. The appellant prays to be allowed to add, amend, modify, rectify, delete, raise any grounds of appeal at the time of hearing.” 3. Facts of the case, in brief, are that the assessee is an individual deriving income from rent, interest income on fixed deposits and agricultural income and has not furnished return of income u/s 139 of the IT Act. On the basis of information of financial transactions of the assessee available with the Department Printed from counselvise.com ITA No.1259/PUN/2025 3 that he has sold two immovable properties, one for Rs.5,75,000/- & another for Rs.52,25,000/- respectively, and has not furnished his return of income, so has not offered any income for taxation with regard to above transactions during the period under consideration. Therefore, the case of the assessee was reopened u/s 147 of the IT Act and notices u/s 148 and 142(1) and 143(2) of the IT Act and final show cause notices respectively were issued to the assessee. In response to notice u/s 148 of the IT Act the assessee furnished return of income declaring income of Rs.2,18,270/- & subsequently also furnished reply stating that both the property sold were agricultural land and not capital asset as per section 2(14) of the IT Act, therefore does not attract any capital gain liable to income tax. Not being satisfied with the reply of the assessee, the Assessing Officer completed the assessment proceedings u/s 147 r.w.s. 144B of the IT Act and vide assessment order dated 29-02-2024 determined income at Rs.61,10,925/- as against the income returned by the assessee at Rs.2,18,270/-. The above assessed income includes additions on account of short term capital gain of Rs.58,00,000/- on sale of two immovable property and addition of Rs.92,665/- towards disallowance of deduction claimed u/s 80C of the IT Act. Printed from counselvise.com ITA No.1259/PUN/2025 4 4. Being aggrieved with the above assessment order, the assessee preferred an appeal before Ld. CIT(A)/NFAC raising only grounds on merits. Since the assessee remained absent, Ld. CIT(A)/NFAC dismissed the appeal filed by the assessee. 5. It is the above ex-parte order passed by Ld. CIT(A)/NFAC against which the assessee is in appeal before the Tribunal challenging the addition on merit. The assessee has also raised legal grounds challenging the reopening of the assessment before the Tribunal for the first time. 6. We have heard Ld. counsels from both the sides and perused the material available on record including the case laws relied on by the assessee. In this regard, we find that Ld. CIT(A)/NFAC dismissed the appeal for want of prosecution without adjudicating the grounds of appeal, since the assessee failed to file any submission before him. In this regard, we find that Ld. counsel of the assessee relied on the judgement passed by Hon’ble High Court of Bombay in the case of CIT vs. Premkumar Arjundas Luthra (2016) 69 taxmann.com 407 (Bombay) wherein Hon’ble Court confirmed the order passed by the Tribunal wherein the appeal was restored to the Commissioner (Appeals) for fresh disposal by observing as under :- Printed from counselvise.com ITA No.1259/PUN/2025 5 “8. From the aforesaid provisions, it is very clear once an appeal is preferred before the CIT(A), then in disposing of the appeal, he is obliged to make such further inquiry that he thinks fit or direct the Assessing Officer to make further inquiry and report the result of the same to him as found in Section 250(4) of the Act. Further Section 250(6) of the Act obliges the CIT(A) to dispose of an appeal in writing after stating the points for determination and then render a decision on each of the points which arise for consideration with reasons in support. Section 251(1)(a) and (b) of the Act provide that while disposing of appeal the CIT(A) would have the power to confirm, reduce, enhance or annul an assessment and/or penalty. Besides Explanation to sub-section (2) of Section 251 of the Act also makes it clear that while considering the appeal, the CIT(A) would be entitled to consider and decide any issue arising in the proceedings before him in appeal filed for its consideration, even if the issue is not raised by the appellant in its appeal before the CIT(A). Thus once an assessee files an appeal under Section 246A of the Act, it is not open to him as of right to withdraw or not press the appeal. In fact the CIT(A) is obliged to dispose of the appeal on merits. In fact with effect from 1st June, 2001 the power of the CIT(A) to set aside the order of the Assessing Officer and restore it to the Assessing Officer for passing a fresh order stands withdrawn. Therefore, it would be noticed that the powers of the CIT(A) is co-terminus with that of the Assessing Officer i.e. he can do all that Assessing Officer could do. Therefore just as it is not open to the Assessing Officer to not complete the assessment by allowing the assessee to withdraw its return of income, it is not open to the assessee in appeal to withdraw and/or the CIT(A) to dismiss the appeal on account of non-prosecution of the appeal by the assessee. This is amply clear from the Section 251(1)(a) and (b) and Explanation to Section 251(2) of the Act which requires the CIT(A) to apply his mind to all the issues which arise from the impugned order before him whether or not the same has been raised by the appellant before him. Accordingly, the law does not empower the CIT(A) to dismiss the appeal for non-prosecution as is evident from the provisions of the Act. 9. In the above view, the question as raised does not give rise to any substantial question of law. Thus, not entertained. 10. Accordingly, Appeal dismissed. No order as to costs.” 7. Respectfully following the above judgement of Hon’ble High Court of Bombay (supra) and considering the totality of the facts of the case, we deem it appropriate to set-aside the ex-parte order Printed from counselvise.com ITA No.1259/PUN/2025 6 passed by Ld. CIT(A)/NFAC and remand the matter back to his file with a direction to decide the appeal afresh & as per fact and law on all the grounds including any new ground either legal or factual raised before him after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to respond to the notices issued by Ld. CIT(A)/NFAC in this regard and to produce relevant submissions/ documents and evidences, if any, in support of all grounds of appeal. Thus, the grounds of appeal raised by the assessee are allowed for statistical purposes. 8. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced on this 29th day of December, 2025. Sd/- Sd/- (R. K. PANDA) (VINAY BHAMORE) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 29th December, 2025. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “A” बᱶच, पुणे / DR, ITAT, “A” Bench, Pune. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. Printed from counselvise.com "