SHOBHARAM TULSHIRAM PRAJAPAT,JALGAON V. ITO, WARD 1(3), JALGAON, JALGAON

ITA 2128/PUN/2025

AI Insights

The case involves Shobharam Tulshiram Prajapat, the appellant, contesting an assessment order for the Assessment Year 2015-16, which included an addition of Rs. 42,29,410 for unexplained money under section 69A of the Income Tax Act, 1961. The primary legal issues raised included the validity of the notice issued under section 148 instead of section 153C, and the absence of a mandatory notice under section 143(2) during reassessment proceedings. The Commissioner of Income Tax (Appeals) did not address these legal issues, leading to the appeal before the Tribunal. The Tribunal found that these issues required extensive factual verification and legal adjudication, which was not feasible at the appellate level, thus remanding the case for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 785903 (ITAT-PUNE)
• Duration Of Justice: 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 14-09-2025
• Other Referred Cases: Divine Infracon Pvt. Ltd. Vs PCIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJITESH MEENA
• Assessee Lawyers: VINAY KAWDIA
• Keywords: Set aside; Reasonable cause; Reassessment proceedings; Period of limitation; Principle of natural justice; Time period of passing order
• Section: 148; 144

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “SMC”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.2128/PUN/2025 Assessment Year : 2015-16 Shobharam Tulshiram Prajapat, Shop No.15, Market Yard, Ajintha Road, MIDC Area, Jalgaon 425 001 Maharashtra PAN : BDLPP8242E Vs. Income Tax Officer, Ward-1(3), Jalgaon Appellant Respondent आदेश / ORDER The captioned appeal at the instance of assessee pertaining to Assessment Year 2015-16 is directed against the order dated 17.07.2025 of National Faceless Appeal Centre, Delhi emanating out of Assessment order dated 30.03.2022 passed u/s.147 r.w.s.144 r.w.s.144B of the Income Tax Act, 1961. 2. Assessee has raised following grounds of appeal : “1) On the facts and circumstances of the case and in law and without prejudice to other grounds, since the proceedings were initiated on the basis of information/documents related to assessee found during the course of search at third party, the notice issued by the AO under section 148 instead of Section 153C is bad in law and the resultant order under section 144 r.w.s. 147 is liable to be quashed. 2) On the facts and circumstances of the case and in law and without prejudice to other grounds, the assessment order passed by the AO u/s 147 r.w.s. 144 after considering the ITR and Appellant by : Shri Vinay Kawdia (through virtual) Respondent by : Shri Ajitesh Meena Date of hearing : 15.10.2025 Date of pronouncement : 29.10.2025 Printed from counselvise.com ITA No.2128/PUN/2025 Shobharam Tulshiram Prajapat 2 submissions filed by the assessee during the course of reassessment proceedings from time to time but without issue of mandatory notice u/s 143(2) of the Act is bad in law and liable to be quashed. 3) On the facts and circumstances of the case and in law and without prejudice to other grounds, the learned CIT(A), NFAC has erred in confirming the addition of Rs. 42,29,410/- made by AO u/s 69A of the act without adjudicating the grounds of appeal before him / without verifying the direct documentary evidences furnished by the appellant in support his claim. 4) The appellant craves the permission to add, amend, modify, alter, revise, substitute, delete any or all grounds of appeal, if deemed necessary at the time of hearing of the appeal.” 3. At the outset, ld. Counsel for the assessee submitted that Ground No.1 was specifically raised in Form No.35 and Ground No.2 raised as an additional ground in the written submissions filed before ld.CIT(A). He however fairly admitted that ld.CIT(A) has not given any filing on this legal issue. He also submitted that the legal issue raised in the instant case is covered by various decisions of this Tribunal which have been referred in the paper book running into 139 pages. 4. On the other hand, ld. Departmental Representative supported the order of ld.CIT(A). 5. I have heard the rival contentions and perused the record placed before me. I observe that the assessee is an individual and assessment for A.Y. 2015-16 concluded on 30.03.2022 u/s.147 r.w.s.144 r.w.s.144B of the Act after making addition of Rs.42,29,410/- for unexplained money u/s.69A of the Act. Assessee preferred appeal before ld.CIT(A) and the same was filed on 12.04.2022 and apart from others assessee has also raised legal issue challenging the validity of notice issued u/s.148 of the Act. Further, ld. Counsel for the assessee Printed from counselvise.com ITA No.2128/PUN/2025 Shobharam Tulshiram Prajapat 3 submitted that another legal issue was also raised that notice u/s.143(2) of the Act was not issued for carrying out the reassessment proceedings. I find that both these issues remained to be adjudicated by ld.CIT(A) and in the impugned order the finding of ld.CIT(A) reads as under : “8. Decision (i) I have gone through the material on record including the contents of assessment order, ground of appeal with statement of facts filed by the assessee. (ii) On going through the submissions filed by the assessee I am of the considered opinion that the issues contained in the response of the assessee require extensive enquiries and verification which may not be possible with the machinery available at the level of Commissioner (Appeals). It would best serve in the interest of justice if the appellant gets another chance to represent his case before Ld. AO and thereupon Ld. AO can verify the submission of the assessee and conduct necessary enquiries to gather material for a true and correct estimation of income of the appellant. Directions for compliance by the Assessee as well as AO are being issued. (iii) As far as the grounds of appeal of the appellant are concerned, the matter requires extensive factual verification and hence the assessment order is set aside and the Assessing Officer is directed to make a fresh assessment after giving adequate opportunities to the appellant and complying with all extant rules and provisions and following principles of natural justice. The appellant may note that all necessary compliance should be made at the earliest and within the time limit prescribed in the notices issued by Ld AO. It should be the endeavor of the Appellant to promptly submit necessary evidences in support of his Income tax return, suo-moto or as required by the Assessing Officer without causing undue delays leading to submissions towards the fag end of the limitation period. The assessment order isset aside accordingly in accordance with proviso to S 251(1)(a) with a direction to the AO to make a fresh assessment in accordance with rules and timelines prescribed u/s 153(3) of the Act. 9. For Statistical purposes, the appeal is partly allowed.” 6. The issue of Tribunal’s power to adjudicate the ground raised before it in second appeal which did not pass through first appeal came for consideration before the Hon’ble Delhi High Court in the case of ‘Divine Infracon Pvt. Ltd. Vs PCIT’ Printed from counselvise.com ITA No.2128/PUN/2025 Shobharam Tulshiram Prajapat 4 [2025, 171 taxmann.com 92 (Del)], wherein their Hon’ble Lordship vide para 13 have categorically held that, the Tribunal has no jurisdiction to proceed to decide the ground which did not arise from the impugned order passed by first appellate authority, irrespective of such ground was raised in first appeal or not. 7. For the aforestated reason, I deem it fit to set-aside the impugned order to the file of ld. CIT(A) to adjudicate all the issues raised in the grounds of appeal in accordance with law and pass a speaking order as contemplated u/s.250(6) of the Act. Needless to mention that in the set aside proceedings ld.CIT(A) shall afford reasonable opportunity of hearing to the assessee. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Effective grounds raised by the assessee are allowed for statistical purposes. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on this 29th day of October, 2025. Sd/- (MANISH BORAD) ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 29th October, 2025. Satish Printed from counselvise.com ITA No.2128/PUN/2025 Shobharam Tulshiram Prajapat 5 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. Printed from counselvise.com "