VIKI VIJAY BALWADKAR,PUNE, MAHARASHTRA V. INCOME TAX OFFICER WARD 2(2), PUNE , PUNE, MAHARASHTRA

ITA 2242/PUN/2025

AI Insights

The case involves an appeal by the assessee, Viki Vijay Balwadkar, against the order of the CIT(A) NFAC, Delhi, which arose from an assessment order passed under sections 147 and 144 of the Income-tax Act, 1961. The assessee challenged the validity of the reassessment proceedings and the additions made to his income. The Tribunal found that the legal issues raised were not previously addressed by the CIT(A) or the AO and deemed it appropriate to remit these issues back for fresh consideration. The Tribunal also noted the assessee's non-compliance in previous hearings and decided to remit the remaining grounds on merits to the CIT(A) for a detailed examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 791251 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 29-09-2025
• Other Referred Cases: National Thermal Power Company Limited Vs. CIT, Divine Infracon Private Limited Vs. PCIT
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANOJ TRIPATHI
• Assessee Lawyers: BHUVANESH KANKANI
• Keywords: Additional evidence; Reasonable cause; Reassessment proceedings
• Section: 147; 148; 144; 142(1); 56(2)

Judgement Text

" आयकर अपीलीय अधिकरण \" ीी \" ।येंयपीण प णी या न् 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. 2242/PUN/2025 धििेंारण वर्ा /Assessment Year: 2015-16 Viki Vijay Balwadkar, The Pearl, Sanjay Farm At Post Balewadi, Opposite Bharati Vidhypeeth, Haveli, Pune-411045 Maharashtra PAN-ASRPB2959G Vs. ITO, Ward 2(2), Pune अपीलेंर्थी / Appellant प्रत्यर्थी / Respondent Assessee by: Shri Bhuvanesh Kankani Department by: Shri Manoj Tripathi-Addl. CIT (through virtual) Date of hearing: 09-12-2025 Date of Pronouncement: 11-12-2025 आदीश /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 passed u/s 250 of the Income-tax Act, 1961 dated 23.07.2025 which is arising out of assessment order passed u/s 147 r.w.s 144 of the Act dated 22.03.2022. 2. Assessee has raised following grounds of appeal:- 1. On the facts and circumstance prevailing in the case and as per provisions and scheme of the Act it be kindly held that Assessment Proceeding so initiated u/s 147 r.w.s. 148 of the Act are invalid and void-ab-initio since the same is initiated without appropriate approval/sanction as required u/s 151 of the Act. Thus, the Assessment Proceedings so initiated be kindly held to be invalid and be kindly quashed. Printed from counselvise.com 2 ITA No. 2242/PUN/2025 2. On the facts and circumstance prevailing in the case and as per provisions and scheme of the Act it be kindly held that Assessment Proceeding so Initiated as per provisions u/s 147 r.w.s 148 of the Act, as applicable prior to 31/03/2021, are invalid and void-ab-initio since the notice u/s 148 of the Act is issued on 01/04/2021 the Assessment Proceedings ought to have been initiated and carried according to the provisions applicable as on 01/04/2021. Thus, the Assessment Proceedings so initiated be kindly held to be invalid and be kindly quashed. 3. On the facts and circumstances prevailing in the case and as per provisions and scheme of the Income-tax Act, 1961 ('the Act') it be held that the addition of Rs. 20,50,500/- & Rs.43,78,000 so made by Ld. AO and that upheld by Ld. CIT(A), NFAC is incorrect and not in accordance with the provisions of the Act. Accordingly, the addition so made be kindly deleted and appellant be granted just and proper relief in this respect. 4. On the facts and circumstances prevailing in the case and as per provisions and scheme of the Income-tax Act, 1961 ('the Act') it be held that the addition of Rs. 20,50,500/- so made u/s 56(2) of the Act is not in accordance with the provisions of the Act. Accordingly, the addition so made be kindly deleted and appellant be granted just and proper relief in this respect. 3. Brief facts of the case are that the assessee is an individual and declared income of Rs. 69,300/- in the Return of Income filed for AY 2015-16. Ld. Assessing Officer (AO) based on the information about the investment made by the assessee for purchase of immovable Property from M/s Golden Trellis and there being difference between the sale consideration and stamp duty paid for the Property, Ld. AO issued notice u/s 148 and 142(1) of the Act. Due to non-compliance at the end of assessee, Ld. AO concluded the proceedings u/s 147 r.w.s. 144 of the Act and making various additions and assessed the income at Rs. 65,11,249/- 4. Aggrieved assessee preferred appeal before Ld. CIT(A) raising the grounds on merits but again due to non response on 6 opportunities of hearing granted by Ld. CIT(A) the assessee’s appeal has been dismissed by Ld. CIT(A). 5. Now the assessee is in appeal before this Tribunal. Printed from counselvise.com 3 ITA No. 2242/PUN/2025 6. Ld. Counsel for the assessee made submissions with regard to the legal issues raised in the grounds of appeal. He fairly admitted that these legal issues have been raised for the first time in this Tribunal. Reference was also made to the Paper Book running into 232 pages. 7. On the other hand Ld. Departmental Representative (DR) supported the order of both the lower authorities. 8. We have heard rival contentions and perused the record placed before us. Aggrieved with the additions of Rs. 64,28,500/-, the assessee has raised legal issues challenging the validity of issues u/s 148 of the Act and the reassessment proceedings and also raised grounds on merits. As per the settled judicial precedence, legal issues needs to adjudicated prior to dealing with merits of the case. Undisputedly legal issues raised in ground No. 1 and 2 have not been raised before Ld. CIT(A) nor any objection were raised before Ld. AO. Since the legal issues goes to the root cause of the additions, the same are admitted in light of the judgement of the Hon’ble Apex Court in the case of National Thermal Power Company Limited Vs. CIT (1998) 229 ITR 383 (SC). 9. So far as dealing with the legal issues raised for the first time in the instant appeal, the issue of this 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 Printed from counselvise.com 4 ITA No. 2242/PUN/2025 Infracon Private Limited Vs. PCIT (2025) 171 Taxman.com 92 (Del) wherein Hon’ble Lordship vide para 13 have held that the Tribunal has no jurisdiction to proceed to decide the grounds which did not arise from the impugned order passed by first appellant authority, irrespective of such ground was raised in first appeal or not. 10. Respectfully following the above judgement of Hon’ble Delhi High Court, we find that since legal issues raised in ground No. 1 and 2 have been raised for the first time before this Tribunal we deem it appropriate to remit back both these legal issues to the file of Ld. CIT(A) for afresh adjudication. We also direct the assessee to place the judicial precedence in support of its legal grounds before Ld. CIT(A) alongwith other relevant details and documents. 11. So far as merits of the case are concerned since the assessee has not appeared before Ld. CIT(A) inspite of giving sufficient opportunity we in the interest of justice remit the remaining grounds No. 3, 4, 5 and 6 also to the file of Ld. CIT(A) for necessary adjudication. The assessee may file additional evidence in support of its grounds and Ld. CIT(A) may call for a remand report from the Ld. Jurisdictional Assessing Officer (JAO). 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 adjournment unless otherwise required for reasonable cause. Effective grounds of appeal raised by the assessee are allowed for statistical purposes. Printed from counselvise.com 5 ITA No. 2242/PUN/2025 12. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced on this 11th day of December, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER प णी/ Pune; ददिेंंक /Dated: 11th December, 2025. Neeta आदीश की प्रधिधलधप अग्रीधर्ि /Copy of the Order forwarded to: 1. अपीलेंर्थी /The Appellant. 2. प्रत्यर्थी /The Respondent. 3. The Pr. CIT concerned. 4. धवभेंगीय प्रधिधिधि, आयकर अपीलीय अधिकरण, \"ीी\" ीाच, प णी /DR, ITAT, \"B\" Bench, Pune. 5. गेंर्ा फेंइल /Guard File. आदीशेंि सेंर /BY ORDER, वररष्ठ धिजी सधचव /Sr. Private Secretary आयकर अपीलीय अधिकरण, प णी /ITAT, Pune Printed from counselvise.com "