MARUTI DAGADU RANJANE, VAHAGAON, SATARA vs. ASSESSING OFFICER WARD 4 SATARA, AAYKAR BHAWAN, MANJUNATH MANOR, PAWAI NAKA, SATARA

The brief facts of the case are that, the Assessing Officer (A.O) has received information that the assessee has sold property immovable property and the assessee has not filed the return of income for the A.Y. 2015-16. The A.O on perusal of the information found that assessee has sold the property to Sea Wind Estates LLP for Rs. 90,00,000/- and assessee’s share is 89,60,000/-. The A.O has reason to believe that the income has escaped assessment and issued notice u/sec 148 of the Income Tax Act and subsequently, issued notice u/sec 142(1) of the Act. In compliance to the notice, the assessee has filed reply on 15.06.2019 mentioning that assessee has sold a rural agricultural land at Khandala for 90,00,000/- and the sale of agricultural land is exempt from tax and therefore, provisions of Section 10(37) of the Act are not applicable. Whereas the AO on the verification of the facts found that land is not agricultural land and is taxable and has issued show cause notice to the assessee and there was no compliance. Whereas the AO considered the information available on record and invoked the provisions of section144 of the Act and made an addition of long term capital gains of Rs. 85,81,760/- and passed the order u/sec 144 r.w.s. 147 vide order dated 06.12.2019. 3. Aggrieved by the order, the assessee has filed the appeal before the CIT(A) whereas the CIT(A) has considered the grounds of appeal, statement of facts, finding of the A.O, and submissions of the assessee and the Ld.AR mentioned that the assessee has sold agricultural land and cannot be treated as income but the CIT(A) has confirmed the action of the A.O and dismiss the assessee appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal.

At the time of hearing, the Ld. AR submitted that the CIT(A) has erred in confirming the addition of long term capital gains made by the AO in relation to the non-agricultural income. The Ld.AR submitted that CIT(A) has erred in not considering the submissions and evidences. Further, the Ld.AR 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 and substantiated the submissions with paper book. Per contra, the ld. DR supported the order the CIT(A).

We heard the rival submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that there is no proper compliance in spite of providing adequate opportunity of hearing. Therefore, the CIT(A) observed that in the assessment proceedings also, the assessee has partial submissions in spite of of providing sufficient opportunities and the CIT(A) has not considered the evidences as the assessment order was passed u/sec144 r.w.s147 of the Act. Whereas the assessee has raised grounds of appeal challenging the addition by the A.O and there could be various reasons for not explaining the sufficient reasons in filling the evidences before the CIT(A) and which cannot be overruled. Therefore, considering the facts and principles of natural justice, we shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences as mentioned in the grounds of appeal in accordance with rule 46A(1) of the I T Rules . Accordingly, we set aside the order of the CIT(A) and remit the entire disputed issues to the file of the Assessing Officer to adjudicate afresh on the disputed issue and the assesse should be provided adequate opportunity of hearing and shall cooperate in submitting the information and evidences. And we allow the grounds of appeal of the assessee for statistical purposes.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the open Court on 29th June, 2026. MANISH BORAD PAVAN KUMAR GADALE (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) Pune, नििधांक / Dated: 29th June, 2026. आदेशकीप्रनिनलनपअग्रेनर्ि / Copy of the Order forwarded to : अपीलधर्थी / The Appellant. 1. प्रत्यर्थी / The Respondent.

The Pr. CIT concerned. नवभधगीयप्रनतनिनर्,आयकिअपीलीयअनर्किण, “B”बेंच, 4. पुणे/ DR, ITAT, “B” Bench, Pune. गधर्ाफ़धइल / Guard File. 5. आिेशधिुसधि / BY ORDER, ////