RAJKUMARI GULAB MANI,PUNE V. PR. CIT (CIRCLE) 8, PUNE

ITA 1482/PUN/2025

AI Insights

The case involves an appeal by the assessee, Rajkumari Gulab Mani, against the order of the Ld. CIT(A) NFAC, Delhi, which was based on an earlier assessment order under section 143(3) of the Income Tax Act, 1961. The primary contention revolves around the disallowance of Rs 3,11,50,307 under section 37, which the assessee argued was incorrectly applied as it pertained to the indexed cost of improvement claimed under section 48. The assessee also contested the application of the normal tax rate on this disallowance, which should have been at a special rate of 20% applicable to capital gains. The Tribunal noted the absence of necessary details and submissions from the assessee during the appellate proceedings and decided to restore the matter to the CIT(A) for a comprehensive re-evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711964 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2022-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AKHILESH SRIVASTVA
• Assessee Lawyers: PRAMOD S SHINGTE
• Keywords: Reasonable cause; Principle of natural justice
• Section: 143(3); 37

Judgement Text

"आयकर अपीलीय अधिकरण \"बी\" न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL \"B\" BENCH, PUNE BEFORE Dr. MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.1482/PUN/2025 धििाारण वर्ा / Assessment Year: 2022-2023 Rajkumari Gulab Mani Solitaire Palms Gat No. 286P, Borhadewadi, Moshi, Pune-412105 Maharashtra PAN-ACYPC7552M Vs Pr. CIT, Circle 8, Pune Appellant Respondent Assessee by : Shri Pramod S Shingte Revenue by : Shri Akhilesh Srivastva, Addl. CIT Date of hearing : 17.07.2025 Date of pronouncement : 22.07.2025 आदेश/ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : This appeal at the instance of assessee is directed against the order of Ld. CIT(A) NFAC, Delhi u/s 250 of the Income Tax Act, 1961 dated 07.05.2025 which in turn is arising out of order Passed u/s 143(3) of the Income Tax Act 1961 dated 27.03.2024. 2. Assessee has raised following grounds of appeal:- 1. On the facts and the circumstances of the case and in law, lower authorities erred in passing ex-parte order and erred in deciding the issue only on the basis of material available with them, this action is being violative of principal of natural justice. Your appellant prays for granting opportunity of hearing before lower authorities. Printed from counselvise.com 2 ITA No.1482/PUN/2025 Without prejudice to the above grounds of appeal, following grounds are also taken on merit, 2. On the facts in the circumstances of the case and in law the learned Assessing Officer erred in disallowance of Rs 3,11,50,307/- u/s 37 of the IT Act the action is illegal as appellant has not claimed any deduction u/s 37, rather deduction claimed is a indexed cost of improvement uls 48 of IT Act and therefore entire disallowance is illegal and unwarranted. 3. Without prejudice to the above ground, on the facts and in the circumstances of the case and in law the learned Assessing Officer ought to have allowed the deduction for indexed cost of improvement of Rs. 3,11,50,307/- (actual cost is 1,80,80,935/-) incurred by the appellant in the FY 2011-12, from the sale of plot transaction offered for taxation under the head capital gain 4. Without prejudice to the above ground, on the facts in the circumstances of the case and in law the learned Assessing Officer erred in applying normal tax rate on the disallowance made, without appreciating the fact that effect of such disallowance will result into enhanced capital gain which is otherwise chargeable at a special rate of 20%. Your appellant alternatively prays for the same. Your appellant prays for deletion of entire addition. Your appellant craves for to add, alter amend, modify, delete any or all grounds of appeal before or during the course of hearing in the interest of principle of natural justice. 3. We have heard rival contentions and perused the record placed before us. Ld. Counsel for the assessee has stated that since the impugned order is ex-parte and assessee failed to furnish necessary details and written submissions, therefore the issues raised in the instant appeal may be remitted back to the file of Ld. CIT(A) for necessary adjudication. Ld. DR did not oppose this request. 4. From the facts and circumstances of the case we observe that during the appellate proceedings the assessee could not place relevant details and necessary submissions in support of the grounds raised in Form No. 35 relating to the disallowance of expenditure u/s 37 of the Act at Rs. 3,11,50,307/- made by the Assessing Officer (AO) in the assessment for A.Y. 2022- 2023 framed u/s 143(3) of the Act. Therefore in the larger interest of justice and being fair to both the parties, we deem it appropriate to restore all the issues raised on merits in the Printed from counselvise.com 3 ITA No.1482/PUN/2025 instant appeal to the file of Ld. CIT(A) for necessary adjudication as contemplated u/s 250(6) of the Act. Needless to mention that proper opportunity of hearing shall be granted to the assessee. Assessee is also directed to remain vigilant and not to take unnecessary adjournment unless otherwise required for reasonable cause. Effective grounds of appeal raised by the assessee are allowed for statistical purposes. 5. In the result appeal of the assessee is allowed for statistical purposes. Order pronounced on this 22nd day of July, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; दििांक / Dated: 22nd July, 2025. Neeta आिेश की प्रधिधलधप अग्रेधर्ि / Copy of the Order forwarded to: 1. अपीलार्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr. CIT concerned. 4. धवभागीय प्रधिधिधि, आयकर अपीलीय अधिकरण, \"बी\" बेंच, पुणे / DR, ITAT, \"B\" Bench, Pune. 5. गार्ा फाइल / Guard File. आिेशािुसार / BY ORDER, वररष्ठ धिजी सधचव / Sr. Private Secretary आयकर अपीलीय अधिकरण, पुणे / ITAT, Pune Printed from counselvise.com "