RAMESH BHAGUJI TAWARE,PUNE V. INCOME TAX OFFICER, WARD 11(1), PUNE

ITA 551/PUN/2025

AI Insights

The case involves an appeal by Ramesh Bhaguji Taware against the order of the Commissioner of Income Tax (Appeals)/NFAC, Delhi, which confirmed the penalty levied by the Assessing Officer under section 271(1)(c) of the Income Tax Act, 1961 for the Assessment Year 2015-16. The penalties were related to unexplained cash deposits, unexplained investments in immovable property, and long-term capital gains additions made by the AO. The CIT(A) dismissed the appeal without proper discussion on the merits and without proper service of notice to the assessee, who resides in a rural area with no proper internet facility. The Tribunal found that the CIT(A) had not adequately considered the submissions made by the assessee and thus set aside the penalty and restored the matter for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 716990 (ITAT-PUNE)
• Duration Of Justice: 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 27-02-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AKHILESH SRIVASTVA
• Assessee Lawyers: SUHAS KULKARNI; DELETING PENALTY
• Keywords: Set aside; Opportunity of being heard; Unexplained investment
• Section: 271(1)(c)

Judgement Text

" आयकर अपीलीय अिधकरण “बी” Ɋायपीठ पुणे मŐ । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, PUNE BEFORE SHRI R.K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / ITA No.551/PUN/2025 िनधाŊरण वषŊ / Assessment Year : 2015-16 Ramesh Bhaguji Taware, A/P-Boriandi, Tal.-Daund – 412202. Maharashtra. PAN : AVSPT5921G Vs. The Income Tax Officer, Ward – 11(1), Pune. अपीलाथŎ / Appellant ŮȑथŎ / Respondent Assessee by : Shri Suhas Kulkarni Department by : Shri Akhilesh Srivastva Date of hearing : 24-06-2025 Date of Pronouncement : 20-08-2025 आदेश / ORDER PER ASTHA CHANDRA, JM : The appeal filed by the assessee is directed against the order dated 31.12.2024 of the Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi [“CIT(A)”] whereby he confirmed the penalty levied by the Ld. Assessing Officer (“AO”) u/s 271(1)(c) of the Income Tax Act, 1961 (the “Act”) pertaining to Assessment Year (“AY”) 2015-16. 2. The assessee has raised the following grounds of appeal : “01 On facts and in the circumstances of the case, CIT(A) has erred in confirming penalty levied with regards to the additions made by the AO on the following grounds :- (i) unexplained cash deposits in his bank account of Rs.17,00,000/- by invoking provision of section 69A rws 115BBE. Printed from counselvise.com 2 ITA No.551/PUN/2025, AY 2015-16 (ii) addition of Rs. 33,00,000/- made by the AO by treating the said amount as unexplained investments in purchase of immovable property by invoking provision of section 69rws 115BBE (iii) addition of Rs.1,03,12,500/-made by the AO by treating the said amount as long term capital gain. (iv) addition of Rs. 2,05,25,000/-made by the AO by treating the said amount as long term capital gain. The assessee prays that penalty levied be deleted. 02. On facts and in the circumstances of the case, CIT(A) has erred in confirming The Penalty levied under section 271(1)(c) of the Income Tax Act 1961 of Rs.86,53,288/- for concealment of income for the year under consideration. The assessee prays that the penalty levied be deleted. 03. During the appellate proceedings, the assessee has made a detailed written submission in the form of “Statement of Facts” which is duly reproduced by the CIT(A) in para No. 4 of the appellate order. However, the Hon. CIT(A) has not taken any cognizance of the information, details and records, submitted by the appellant assessee in the said “Statement of Facts” and has dismissed the said appeal without discussion and decision on the grounds of appeal on merits. Therefore, the order of the CIT(A) be cancelled and relief be given to the appellant assessee by deleting penalty levied under section 271(1)(c) of the Income Tax Act 1961 of Rs.86,53,288/- by the AO. 04. The On facts and in the circumstances of the case, CIT(A) has erred in confirming all the above referred additions made by the Assessing officer and has dismissed the appeal filed by the assessee without proper service of notice to the assessee and without giving proper opportunity to the assessee. The assessee stays in rural area where no proper internet facility is available. Therefore, aggrieved with order passed under section 250 of the Income-tax Act, 1961 by the Hon’ble CIT(A) vide no. ITBA/NFAC/ S/250/ 2024-25/1071733323(1) dated 31.12.2024 in respect of assessment order, the appellant assessee has filed appeal before the Hon’ble Income-tax Appellate Tribunal on 27.02.2025. Therefore, the appellant assessee prays to delete the penalty so levied. Printed from counselvise.com 3 ITA No.551/PUN/2025, AY 2015-16 05) The assessee reserves the right to add, amend or alter/withdraw any ground/grounds of appeal at the time of hearing.” 3. Vide our order of even date we have set aside the order of the Ld. CIT(A)/NFAC on quantum issues involved and restored the matter to his file to be decided afresh on merits. We, therefore, set aside the impugned penalty order of the Ld. CIT(A)/NFAC and restore the matter back to his file for decision afresh in accordance with law after allowing reasonable opportunity of being heard to the parties. We order accordingly. 4. In the result, the appeal of the assessee is treated as allowed for statistical purpose. Order pronounced in the open court on 20th August, 2025 Sd/- Sd/- (R.K. Panda) (Astha Chandra) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; िदनांक / Dated : 20th August, 2025. SGR आदेश की Ůितिलिप अŤेिषत / Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant. 2. ŮȑथŎ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, “बी” बŐच, पुणे / DR, ITAT, “B” Bench, Pune. 5. गाडŊ फ़ाइल / Guard File. //सȑािपत Ůित// True Copy// आदेशानुसार / BY ORDER, वįरʿ िनजी सिचव / Sr. Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune Printed from counselvise.com "