NARSINH ASSOCIATES PROMOTERS BUILDERS AND DEVELOPERS,PUNE vs. DGIT(INVESTIGATION), PUNE

Since the issues involved in these two appeals are common, identical and similar and for the sake of convenience, we shall take up ITA 2129/PAN/2026 for the Assessment Year 2014-15 as a lead case and facts narrated.

At the time of hearing, the Ld. A.R. submitted that there is a delay of 239 days in filing the appeal before Hon'ble Tribunal and the delay was not intentional and filed an application and affidavit for condo nation of delay by the assessee. On consideration of facts and information mentioned in the affidavit there is a reasonable cause explained and the Ld. DR. has no specific objections. Accordingly, the delay is condoned and the appeal is admitted.

The brief facts of the case are that, the assessee is a partnership firm duly registered under the Indian Partnership Act, 1932 and is engaged in the business of construction and development of residential as well as commercial projects. As per the information received by the Income Tax Department, the assessee has received rent of Rs. 3,17,400/- and Rs. 2,11,56,000/- in respect of transfer of immovable property at S.No. 42, Katraj, from Sunil Laxman Dangmali in the F.Y.2013-14 and the assessee has not filed the return of income for A.Y. 2014-15. The Assessing Officer (A.O) has reason to believe that the income has escaped assessment and issued notice u/sec 148 of the Act and there was no compliance. Further notice u/sec 142(1) of the Act was issued and it was not complied by the assessee. Therefore, the Assessing Officer considering the information available on record invoked the provisions of Section 144 of the Act and made the addition of Rs. 3,17,400/- as a undisclosed rent income and short term capital gains of Rs. 2,11,56,000/- and assessed the total income of Rs.2,14,73,400/- and passed the order u/s 147 r.w.s 144 of the Act dated 22.03.2022. 5. Aggrieved by the order, the assessee has filed an appeal before the CIT where the CIT(A) has considered the grounds of appeal, statements of facts and finding of the AO and issued notice of hearings and since there was no compliance by the assessee to the notices, therefore, CIT(A) considering information on record has confirmed the action of the AO and dismissed the appeal. Aggrieved by the order of the CIT(A), assessee has filed appeal before the Hon'ble Tribunal.

At the time of hearing, ld. AR submitted that the CIT(A) has erred in confirming the action of the AO overlooking the information of the assessment proceedings and non- compliance of notice was not a deliberate act or wanton act by the assessee. Further, ld. AR of the assessee mentioned that assessee has a good case on merits and shall substantiate with material evidences and prayed for an opportunity to explain before the lower authorities. Per contra, the ld. DR supported the order the CIT(A).

We heard the rival submissions and perused the material on record. Prima facie, CIT(A) has passed the order, considering the fact that there is non-compliance and non-appearance in spite of providing adequate opportunity of hearing and notices were issued therefore, CIT(A) was of the opinion that the assessee is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the AO whereas the CIT(A) has issued notices on various dates referred in Para 6.1 of the order but there was no response. Thus, the CIT(A) came to the conclusion that the assessee is not interested and decided the appeal based on the information available on record. Whereas the assessee has raised grounds of appeal challenging in the additions made by the AO and there could be various reasons for non-appearance which cannot be overruled. Therefore, considering the facts, circumstances, submissions and principles of natural justice, we shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information subject to payment of cost of Rs.10,000/- to Maharashtra State Legal services authority within one month from the date of receipt of the order and produce the proof of payment. Accordingly, We set aside the order of the CIT(A) and remit the disputed issue to the file of the CIT(A) to adjudicate afresh and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of appeal. And the grounds of appeal of the assesse are allowed for statistical purposes.

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

As the facts and circumstances in this appeal is identical to ITA No.2129/PUN/2026 for the A.Y 2014-15 (except variance in figures) and the decision rendered in above paragraphs 6 to 9 would apply mutatis mutandis for this appeal also. Accordingly, the grounds of appeal of the assessee are allowed for statistical purpose.

In the result, the two appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the open Court on 15th June, 2026. MANISH BORAD PAVAN KUMAR GADALE (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) Pune, Dated:15th June, 2026 Abhishek Mohan Abhishek Mohan Date: 2026.06.17 10:41:01 +05'30'

The Pr. CIT concerned. 4. तिभागीयप्रतितिति,आयकरअिीिीयअतिकरण, “B” बेंच, पुणे/ DR, ITAT, “B” Bench, Pune. गार्डफ़ाइि / Guard File. 5. //// आदेशािुसार / BY ORDER,