SRIRANG SHAMRAO DESHMUKH,MUMBAI V. WARD 41(3)(4), MUMBA, MUMBAI

ITA 1338/MUM/2025

AI Insights

The case involves an appeal by Srirang Shamrao Deshmukh against the order of the Commissioner of Income Tax (Appeals), NFAC, Delhi, pertaining to the assessment year 2017-18. The primary grievances included the dismissal of the appeal without proper discussion on the merits, confirmation of additions as unexplained investments, and issues related to deemed income and deductions under sections 69, 56(2)(vii), and 80C of the Income Tax Act. The Tribunal found that the CIT(A) had not addressed the appeal on its merits and thus restored the matter for fresh adjudication.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711391 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SWAPNIL CHOUDHARY; DR
• Assessee Lawyers: HITESH SHAH; AR
• Keywords: Set aside; Opportunity of being heard; Unexplained investment; Sale consideration of property below Jantri Value; Deemed to accrue or arise in india
• Section: 148; 69; 2; 50C; 80C

Judgement Text

" | आयकर अपीलीय अिधकरण ा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER & SHRI ANIKESH BANERJEE, HON’BLE JUDICIAL MEMBER I.T.A. No. 1338/Mum/2025 Assessment Year: 2017-18 Srirang Shamrao Deshmukh 309, Shiv Shakti Apt. Vaishet Pada Kurar Village Malad East Maharashtra - 400097 [PAN: ACHPD5626J] Vs Ward – 41(3)(4), Mumbai अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : Shri Hitesh Shah, A/R Revenue by : Shri Swapnil Choudhary, Sr. D/R सुनवाई की तारीख/Date of Hearing : 21/07/2025 घोषणा की तारीख /Date of Pronouncement: 23/07/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the assessee is preferred against the order dated 28/12/2024 by NFAC, Delhi [hereinafter ‘the CIT(A)’] pertaining to AY 2017-18. 2. The grievance of the assessee reads as under:- “GROUND : 1 On the facts and circumstances of the case and in the law, the Commissioner of Income tax (Appeals), NFAC erred in dismissing the appeal without discussing and disposing the each grounds of appeal on the merits of the case as mandated u/s. 250(6) in spite of the facts that there is no defect in filing of appeal. The Appellant therefore prays that the order passed us/. 250 devoid of merits be set aside for fresh adjudication and the appellant's submission ground wise may be considered. Printed from counselvise.com I.T.A. No. 1338/Mum/2025 2 GROUND : 2 U/S. 69 UNEXPLAINED INVESTMENT FOR THE PURCHASE OF RESIDENTIAL FLAT On the facts and circumstances of the case and in the law, the Commissioner of Income tax (Appeals), NFAC erred in confirming the addition of Rs. 40,00,000/- as unexplained investment in spite of the explanations offered and documentary evidences produced before him. The Appellant therefore prays that the addition of Rs. 40,00,000/- u/s. 69 as unexplained investment being baseless, bad-in-law, illegal, unwarranted and hence be deleted. GROUND : 3 Section 56(2)(vii) Deemed income being difference between agreement value and the stamp duty valuation adopted. On the facts and circumstances of the case and in the law, the Commissioner of Income Tax (Appeals), NFAC Delhi erred in confirming the addition of Rs. 14,10,500/- as income from other sources being the difference between agreement value and the stamp duty valuation adopted u/s. 50C in spite of the facts that the property was booked earlier and registration of the agreement was made later. The Appellant therefore prays that the addition of Rs. 14,10,500/- under the head income from other sources being baseless, bad-in-law, illegal, unwarranted and hence be deleted. GROUND : 4 Deduction u/s. 80C No deduction granted for stamp duty and registration charges paid on the purchase of residential flat. On the facts and circumstances of the case and in the law, the Commissioner of Income Tax (Appeals), NFAC Delhi erred in confirming the dis-allowance of the deduction u/s. 80C for the stamp duty paid on the purchase of residential flat to the extent of Rs 1,50,000/- as income from other sources being the difference between agreement value and the stamp duty valuation adopted in spite of the facts that the property was booked earlier and registration of the agreement was made later. The Appellant therefore prays that the deduction of Rs. 1,50,000/- be granted. GROUND : 5 General The appellant craves leave to add, alter, amend and modify any of the grounds above at the time of hearing.” 3. Having heard the rival representatives, we have carefully perused the impugned order of the ld. CIT(A). The appeal of the assessee has been dismissed for want of payment of advance tax invoking the Printed from counselvise.com I.T.A. No. 1338/Mum/2025 3 provisions of Section 249(4)(a) of the Act. A perusal of the assessment order shows that the assessee has filed return of income for the assessment year under consideration on 08/02/2017 declaring total income at Rs. 2,77,670/- and the returned income of the assessee was assessed at Rs. 56,88,170/- for which the assessee has preferred appeal before the ld. CIT(A). Therefore, in the considered opinion of this Bench, the ld. CIT(A) ought to have decided this appeal on correct facts of the case when the assessee had filed the return of income for which the assessment was reopened, considering the original return of income filed in pursuance to the notice u/s 148 of the Act. Therefore, in the interest of justice, we restore the issue to the file of the ld. CIT(A) to be decided afresh on merits of the case after affording reasonable and adequate opportunity of being heard to the assessee. 4. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the Court on 23rd July, 2025 at Mumbai. Sd/- Sd/- (ANIKESH BANERJEE) (NARENDRA KUMAR BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated 23/07/2025 *SC SrPs *SC SrPs *SC SrPs *SC SrPs Printed from counselvise.com I.T.A. No. 1338/Mum/2025 4 आदेश की \u0014ितिलिप अ\u0019ेिषत /Copy of the Order forwarded to : 1. अपीलाथ\u001b / The Appellant 2. \u0014 थ\u001b / The Respondent 3. संबंिधत आयकर आयु! / Concerned Pr. CIT 4. आयकर आयु! ) अपील ( / The CIT(A)- 5. िवभागीय \u0014ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड% फाई/ Guard file. आदेशानुसार/ BY ORDER TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai Printed from counselvise.com "