REKHABEN KALUBHAI PATEL,MAHISAGAR vs. INCOME TAX OFFICER, WARD 1, LUNAWADA

The ld. CIT(A) has erred on facts in disallowing the cost of improvement Rs.3,91,397/- of property claimed while determining the LTCG and resultant tax liability.

The ld. CIT(A) has erred on facts in determining the tax liability without giving effect of the TDS already deducted u/s 192 and Advance Tax Paid.

When the appeal was taken for hearing, none was present on behalf of the Assessee. On perusal of record, we find that the Assessee has moved an application for admission of additional evidence. It emerges from record that assessment under Section 144 r.w.s. 144B of the Act was framed on the Assessee for the Assessment Year 2021-2022 vide Assessment Order, dated 08/12/2022. The Assessing Officer assessed income of the Assessee at INR.55,10,290/- after making following addition/disallowances: Particulars Amount (INR.) Disallowance of deduction claimed under Section 80C 1,50,000/- Addition under Income from other sources (Total INR.31,10,873/-) Transaction of BGGB Account - Saving interest in BGGB Account 19,116/- - Proceeds from sale of property 90,000/- - Arrears of Salary Received 19101/- Total Credits in Axis Bank Account 29,82,656/- Disallowance of cost of improvement claimed for LTCG 3,91,387/- TOTAL 36,52,270/-

Being aggrieved, the Assessee preferred appeal before Learned CIT(A) which was dismissed vide Order, dated 17/12/2025, passed under Section 250 of the Act. The Learned CIT(A) declined to grant any relief to the Assessee holding that the Assessee had been non-compliant during the assessment proceedings and had failed to furnish evidence and supporting documents in the appellate proceedings.

Perusal of the record shows that the Assessee had furnished additional documents/details before the Learned CIT(A) a copy of which has been placed before us as part of the Paper Book filed by the Assessee (at Pages 36 to 97). It has been stated in the application for admission of additional evidence filed by the Assessee along with the present

Whether any documentary evidence other than the Yes evidence produced during the course of proceedings before the Income-tax Authority has been filed in terms of Rule 46A

The above supports the stand taken by the Assessee. The Learned CIT(A) failed to appreciate this aspect and dismissed the appeal observing that the Assessee had failed to furnish any additional evidence since the formal application for admission of additional evidence was not moved by the Assessee.

Keeping in view the totality of the facts and circumstances of the case discussed hereinabove and considering the application for admission of additional evidence moved by the Assessee before this Tribunal, we deem it appropriate to admit the additional evidence filed by the Assessee; set-aside the impugned Order, dated 17/12/2025, passed by Learned CIT(A); and restored the issue back to the file of Learned CIT(A). The Learned CIT(A) is directed to adjudicate the grounds raised by the Assessee on merits after taking into consideration the additional evidence furnished by the Assessee after calling for a remand report from the Assessing Officer. It is clarified that the Assessee would be granted reasonable opportunity of being heard. In terms of the aforesaid, the grounds raised by the Assessee are treated as allowed for statistical purpose. It is clarified that we have not 3 Assessment Year 2021-2022 returned any findings on merits of the additions/disallowances challenged in the present appeal and that the Learned CIT(A) would be at liberty to adjudicate the grounds raised by the Assessee on merits as per law.

In the result, the present appeal filed by the Assessee is allowed for statistical purposes.

""यथ"/ The Respondent. 3. संबंिधतआयकरआयु"/ Concerned CIT 4. आयकरआयु"(अपील) / The CIT(A) 5. िवभागीय"ितिनिध, आयकरअपीलीयअिधकरण/ DR, ITAT, 6. गाड"फाईल /Guard file. आदेशानुसार/BY ORDER,