SHRI. KAUSHAL KUMAR PARMAR,PUNE V. INCOME TAX OFFICER, WARD 9(3), PUNE

ITA 1806/PUN/2025

AI Insights

The case involves Kaushal Kumar Parmar, the appellant, who contested the order of the National Faceless Appeal Centre/Commissioner of Income Tax (Appeals), Delhi, which was passed under section 250 of the Income Tax Act, 1961. The dispute arose from an assessment order under sections 147 and 144B of the Act, which added a substantial amount to the assessee's income for the Assessment Year 2018-19, based on the sale of immovable property. The CIT(A) dismissed the appeal due to non-compliance by the assessee in attending the hearings, and also upheld the addition made by the Assessing Officer regarding the nature of the land sold. The Tribunal noted the assessee's ongoing family litigation over the land's ownership and the validity of a will, which contributed to his non-compliance.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 791330 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Appeal Filed On: 28-07-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMOL KHAIRNAR
• Assessee Lawyers: KETAN DHOOT
• Keywords: Capital asset; Opportunity of being heard; Reasonable cause; Principle of natural justice
• Section: 148

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE “A” BENCH : PUNE BEFORE DR. MANISH BORAD, ACCOUNTANT MEMBER & SHRI VINAY BHAMORE, JUDICIAL MEMBER I.T.A.No.1806/PUN/2025 (Assessment Year 2018-2019) Kaushal Kumar Parmar, 405 G-Ward, Nava Bazar, Lonavala, Maharashtra PAN : BTAPP 3503 P vs. ITO, Ward-9(3), Pune (Appellant) (Respondent) For Assessee : Shri Ketan Dhoot, CA For Revenue : Shri Amol Khairnar, CIT-DR Date of Hearing : 03.12.2025 Date of Pronouncement : 08.12.2025 ORDER PER : MANISH BORAD, AM This appeal at the instance of the assessee is directed against the order of National Faceless Appeal Centre (NFAC)/ Commissioner of Income Tax (Appeals), Delhi [“CIT(A)”], dated 29/05/2025 passed under section 250 of the Income Tax Act, 1961 (“Act”), which is arising out of assessment order u/s.147 r.w.s. 144B of the Act, dated 26/03/2024 for the Assessment Year (AY) 2018-19. Printed from counselvise.com 2 ITA.No.1806/PUN./2025 (Kaushal Kumar Parmar) 2. The assessee has raised the following grounds of appeal:- “1. Appellant prays that one more opportunity of being heard may please be given to the appellant and the matter may please be remanded back to the file of learned CIT(A). Appellant was genuinely trying to get the legal documents, court orders etc. which actually took time. In the meantime, learned CIT(A), passed the order in hurriedly manner 2. Appellant contends that there is strong merit in the case. Hence, it is urged that in the interest of natural justice one more opportunity of being heard may please be given to the appellant assessee. 3. Alternatively, and without prejudice, the learned CIT(A) ought to have taken into consideration that the entire transaction of sale of land by the appellant was under question due to validity of appellant's grandfather's WILL and thus, ownership of the land sold by the appellant itself was under dispute. However, the learned CIT(A), kept silence on this matter while passing the order without discussing the same on merits. 4. Alternatively, and without prejudice, the learned CIT(A), ought to have passed a speaking order on merits with reasons and findings. 5. The appellant assessee craves leave to add/modify/ delete all or any of the grounds of appeal.” 3. Brief facts of the case are that assessee is an individual and no regular return of income is filed for A.Y. 2018-19. Subsequently, based on the information about transactions of sale and purchase of immovable property and cash deposits in the bank account, Ld.AO issued notice u/s. 148 of the Act. In response to which, assessee furnished return of income on 06/06/2022 declaring income of ₹10,43,400/-. Assessee made partial compliance to the notices issued by the Ld.AO and Ld.AO concluded the assessment making addition u/s.45 of the Act for gross consideration at ₹7,26,82,500/- and income assessed at ₹7,37,25,900/-. Printed from counselvise.com 3 ITA.No.1806/PUN./2025 (Kaushal Kumar Parmar) 4. Aggrieved with the addition made by the Ld.AO, assessee approached Ld.CIT(A), but failed to respond to the notices fixed for hearing on 05/03/2025, 19/03/2025, 05/05/2025 & 27/05/2025. Due to non-compliance of the assessee, Ld.CIT(A) dismissed the assessee’s appeal and also rejected the claim of the assessee that the land sold was not capital asset as the same was rural agricultural land do not fall within the municipal limit. The finding of the Ld.CIT(A) reads as under:- “5.7 As can be understood from the above, even during the course of assessment proceedings, the appellant has not submitted proper reply and has made contradictory claims with regard to receipt of sale consideration of Rs. 7,26,82,500 However, as detailed above, the AO has rebutted all the contradictory submissions of the appellant and made the addition. 5.8 Further, the claim of the appellant that, the land sold was not a capital asset as the same was rural agricultural land which do not fall within the municipal limits is not acceptable. As rightly pointed out by the AO in the assessment order, the certificate issued by Pune Metropolitan Development Authority with regard to this land goes on to prove that the land falls within the municipal limits and does not qualify as rural agricultural land as contended by the appellant. 5.9 In view of the above, the action of the AO is upheld and the Grounds raised by the Appellant are dismissed. 5. Aggrieved by the order of Ld.CIT(A), assessee is now in appeal before this Tribunal. Learned counsel for the assessee humbly prayed for restoration of the issues on merits to the file of Ld.CIT(A) as the assessee could not respond to the notices issued, for the reason that transaction of sale of land by the assessee was in question due to validity of assessee’s Printed from counselvise.com 4 ITA.No.1806/PUN./2025 (Kaushal Kumar Parmar) grandfather’s WILL and thus ownership of the land sold by the assessee itself was under dispute. 6. Ld.Departmental Representative (DR) supported the order of Ld.CIT(A). 7. We have heard rival contentions and perused the records placed before us. We observe that Ld.AO made addition u/s. 45 of the Act for the gross consideration received by the assessee for sale of immovable property amounting to ₹7,26,82,500/-. Admittedly, assessee did not participate in the appellate proceedings before the Ld.CIT(A) and the same has been accepted by the learned counsel for the assessee during the course of hearing before this Tribunal. The main reason for such non-compliance is due to ongoing litigation between the assessee and his family members. 8. We, therefore, considering the prayer made by the learned counsel for the assessee and also observing that Ld.CIT(A) has not passed detailed speaking order as contemplated u/s. 250(6) of the Act, deem it appropriate to remit the issues back to the file of Ld.CIT(A) for necessary adjudication. Needless to mention that Ld.CIT(A) shall afford a reasonable opportunity of being heard to the assessee and then decide the issues in accordance with law. The assessee is also directed to remain vigilant and not to take unnecessary adjournments unless required for reasonable cause. Grounds Printed from counselvise.com 5 ITA.No.1806/PUN./2025 (Kaushal Kumar Parmar) of appeal raised by the assessee are allowed for statistical purposes. 9. In the result, appeal of the Assessee is allowed for statistical purposes. Order pronounced in the open Court on 08.12.2025. Sd/- Sd/- [VINAY BHAMORE] [MANISH BORAD] JUDICIAL MEMBER ACCOUNTANT MEMBER Pune, Dated 08th December, 2025 vr/- Copy to 1. The appellant 2. The respondent 3. The CIT(A), Pune concerned. 4. D.R. ITAT, “A” Bench, Pune. 5. Guard File. By Order //True Copy // Assistant Registrar, ITAT, Pune. Printed from counselvise.com "