PRAYANK VIKRAM DHADDHA,PUNE V. DCIT(IT), CIRCLE-1, PUNE, PUNE

ITA 1248/PUN/2025

AI Insights

The case revolves around an appeal by Prayank Vikram Dhaddha against the order of the CIT(A), which confirmed the disallowance of Rs.8,87,962 claimed as exempt income under section 10(2A) of the Income Tax Act, 1961. The amount represented the assessee's share of profit from partnership firms. The CPC had initially disallowed this claim, leading to the appeal. The Tribunal examined the discrepancies noted by the CIT(A) between different schedules of the Income Tax Return and found that the assessee had indeed correctly reported the exempt income. The Tribunal's decision was based on the clear documentation provided by the assessee, which was not contested by the Department.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711956 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2021-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHILPA N C
• Assessee Lawyers: SARVESH KHANDELWAL
• Keywords: Earning of tax free income

Judgement Text

" आयकर अपीलीय अिधकरण ”एस एम सी” Ɋायपीठ पुणेमŐ। IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “SMC” :: PUNE BEFORE MS.ASTHA CHANDRA, JUDICIAL MEMBER AND DR.DIPAK P. RIPOTE, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.1248/PUN/2025 िनधाᭅरण वषᭅ / Assessment Year: 2021-22 Prayank Vikram Dhaddha, Plot No.48, Neev, Amanora ark, Hadapsar, Pune – 411028.Maharashtra. V s The Deputy Commissioner of Income Tax, International Taxation(IT), Circle-1, Pune. PAN: AKBPD8381J Appellant/ Assessee Respondent / Revenue Assessee by Shri Sarvesh Khandelwal – AR Revenue by Smt. Shilpa NC – Addl.CIT(DR) Date of hearing 03/07/2025 Date of pronouncement 22/07/2025 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: This is an appeal filed by Assessee against the order of ld.Addl./Joint Commissioner of Income Tax(Appeal), Agrapassed under section 250 of the Income Tax Act, 1961 for the A.Y.2021-22 dated 20.03.2025, emanating from order u/s.143(1)of the Income Printed from counselvise.com ITA No.1248/PUN/2025 [A] 2 Tax Act, 1961, dated 22.03.2022. The Assessee has raised following grounds of appeal : “1. On the facts & circumstances prevailing in the case and as per the provisions of the Act, it may please be held that the order passed u/s 250 of the Act by the Hon'ble CIT Appeals is not in accordance with the provisions of the Act. The appeal should have been allowed after considering the provisions of the Act in this regard. Just and proper relief be granted to the appellant in the case. 2. The appellant prays to be allowed to add, amend, modify, rectify, delete, and raise any grounds of appeal at the time of hearing.” Findings & Analysis : 2. We have heard both the parties and perused the record placed before us. In this case, in the Return of Income, Assessee had claimed Rs.8,87,962/- as exempt income u/s.10(2A) of the Act, being profit of firms. However, the Return of Income filed by the Assessee was processed by Centralized Processing Center(CPC) u/s.143(1) of the Act. CPC disallowed assessee’s claim of Rs.8,87,962/-. Aggrieved by the order of the CPC, Assessee filed appeal before the ld.CIT(A) who confirmed the disallowance. Ld.CIT(A) in paragraph 5.5 has mentioned that in the relevant Schedule of Income Tax Return, the Assessee has shown amount of share in the profit as “Zero(0)”. However, in the paragraph 5.6 of the order, ld.CIT(A) has observed that Assessee in Schedule-EL of the Return of Income had shown Rs.8,87,962/- as share of profit Printed from counselvise.com ITA No.1248/PUN/2025 [A] 3 from Partnership Firm under the head “Exempt Income”. Ld.CIT(A) further noted that since there was contradiction between two schedules of the Return of Income, ld.CIT(A) confirmed the addition. 2.1 Ld.AR pleaded before us that Assessee had shown Rs.8,87,962/- as share of profit in the Return of Income. We have perused the Return of Income and observed that Assessee had shown Rs.8,87,962/- as share of profit from firms and claimed it as exempt income. There is no dispute that u/s.10(2A) of the Act, the share of profit from firms is exempt. During the year, assessee had shown following share of profit and claimed as exempt income : Sr.No. Name of the Partnership Firm/LLP Amount of Share of Profit (Rs.) 1 Tribute Landmarks LLP Rs.6,621/- 2 Tribute Landmarks Firm Rs.8,91,538/- 3 Mitribute Homes LLP (Rs.8,449/-) 4 Arihant Developers (Rs.1,748/-) TOTAL Rs.8,87,962/- 3. Assessee had filed copies of the Capital Accounts of the firms mentioned in the above table. All these documents were filed before the ld.CIT(A) also. Ld.DR has not raised any objections regarding the documents. Printed from counselvise.com ITA No.1248/PUN/2025 [A] 4 3.1 Since assessee has earned income of Rs.8,87,962/- as profit from various firms and u/s.10(2A) it is exempt. Names of the all firms and their PAN numbers are mentioned in Schedule-IF of the Return of Income. In these facts and circumstances of the case, we direct the Assessing Officer to allow exemption u/s.10(2A) of Rs.8,87,962/-. Accordingly, grounds of appeal raised by the assessee are allowed. 4. In the result, appeal of the assessee is allowed. Order pronounced in the open Court on 22 July, 2025. Sd/- Sd/- MS.ASTHA CHANDRA Dr.DIPAK P. RIPOTE JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 22 July, 2025/ SGR आदेशकᳱᮧितिलिपअᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. िवभागीयᮧितिनिध, आयकर अपीलीय अिधकरण, “एस एम सी” बᱶच, पुणे / DR, ITAT, “SMC” Bench, Pune. 6. गाडᭅफ़ाइल / Guard File. आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune. Printed from counselvise.com "