VANRAJSINH DADBHAI KAHOR,AHMEDABAD vs. THE ITO, WARD-5(3)(2), AHMEDABAD

PDF · subscribers
ITA 112/AHD/2026Status: DisposedITAT Ahmedabad19 May 2026AY 2015-168 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the CIT(A) has the power to give directions under Section 150 read with Section 251 of the Act. However, the direction to reopen the case was modified to direct the AO to exercise his powers of reopening for considering the taxability of the investment as per law.

What were the facts?

The assessee challenged a direction by the CIT(A) to reopen the assessment for AY 2014-15 to tax an amount of Rs. 36,30,000/- paid for an immovable property. The assessee argued that this payment was made in the preceding year, not the impugned year.

What were the issues?

Whether the CIT(A) has the power to direct reopening of assessment for a preceding year, and if so, the validity of such a direction.

Which sections of the Income-tax Act were involved?

Section 150,Section 251,Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

Before: SMT. ANNAPURNA GUPTA

For Appellant: Shri Sakar Sharma, A.R, Shri Girish Parihar, Sr.DR
For Respondent: Shri Girish Parihar, Sr.DR
Hearing: 05/03/2026Pronounced: 19/05/2026

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD

BEFORE: SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER आयकर अपील सं./I.T.A. No. 112/Ahd/2026 (िनधा�रण वष� / Assessment Year: 2015-16) बनाम/ Vanrajsinh Dadbhai Income Tax Officer Ward-5(3)(2) Kahor, Vs. A/104, Tegency Tower, Room No.421, Behind Management Aayakar Bhawan Enclave, (Vejalpur), Near Sachin Vastrapur, Tower, 100 Food Road, Ahmedabad-380015 Ahmedabad-Prahladnagar Road, Ahmedabad-380015 �थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AGDPK4812F (Appellant) .. (Respondent) अपीलाथ� ओर से /Appellant by : Shri Sakar Sharma, A.R ��यथ� क� ओर से/Respondent by : Shri Girish Parihar, Sr.DR Date of Hearing 05/03/2026 Date of Pronouncement 19/05/2026

(आदेश)/ORDER

The present appeal has been filed by the assessee against the order of Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (hereinafter referred to as “NFAC”) (in short “CIT(A)”), dated 08.10.2025 passed under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) and relates to Assessment Year (A.Y.) 2015-16.

ITA No.112/Ahd/2026 [Vanrajsinh Kahor Vs. The ITO, Ward-5(3)(2)] A.Y. 2015-16 - 2 – 2. The registry has noted the appeal to be time barred by filing 19 days. Considering the smallness of the delay, the same is condoned.

3.

The solitary grounds raised by the assessee read as under:

“1. The Ld. CIT(A)-NFAC erred on facts and in law in giving directions to reopen assessment for AY 2014-15 as per provisions of section 150 and to tax Rs. 36,30,000/- which the Assessing Officer taxed in the year under consideration.” 4. The solitary grievance of the assessee in the present appeal is against direction given by the Ld.CIT(A) in his order to reopen the case of the assessee for the preceding Assessment Year, A.Y 2014- 15 and make addition to his income in the said year.

5.

The facts of the case are that for the impugned year the case of the assessee was reopened on the AO being in possession of the information that the assessee had purchased an immovable property amounting to Rs. 50 Lakhs, the source of which was not disclosed/explained during assessment proceedings. The assessee pointed out that though the property was registered in the impugned year, payment of only Rs. 10 Lakhs was made in the impugned year while balance payment of Rs. 36,30,000/- was made in the preceding year. The AO accepted the source of payment of Rs. 10 lacs made in the impugned year as duly explained. However, he was not convinced with the explanation of the assessee that the payment of Rs.36,30,000/- was made in the preceding year and accordingly added the same to the income of

ITA No.112/Ahd/2026 [Vanrajsinh Kahor Vs. The ITO, Ward-5(3)(2)] A.Y. 2015-16 - 3 – the assessee despite the assessee furnishing copy of the bank statement to substantiate the same.

6.

The Ld. CIT(A) perused the documents before him and found that it clearly mentioned payment of Rs. 36,30,000/- being made in cash by the assessee in the preceding year. He noted the assessee to have explained the cash to have been paid out of withdrawal made from the bank accounts in the preceding year. Noting so, he held that there was no case for making addition to the income of the assessee in the impugned year since clearly the payment of Rs. 36,30,000/- was not made by the assessee in the impugned year. He accordingly directed the AO to reopen the case of the assessee for the preceding year i.e. A.Y. 2014-15and make addition to his income in the said year; his direction, he stated was as per provisions of 150 of the IT Act.

7.

The assessee before me has challenged this direction of the Ld. CIT(A) stating that the Ld.CIT(A) has no power to give any direction. He has referred to the decision of the ITAT Kolkata Bench in the case of ITO Vs. Vishwajeet Chatterjee in ITA No.565/Koklaka/2013 dated 10.11.2017, in this regard.

8.

Ld. DR however, has supported the order of the Ld. CIT(A) and pointed out that in terms of the provisions of Section 150 of the Act the CIT(A) was well within the powers to give any direction.

ITA No.112/Ahd/2026 [Vanrajsinh Kahor Vs. The ITO, Ward-5(3)(2)] A.Y. 2015-16 - 4 – 9. I have heard both the parties. The solitary issue before me is: (1) Whether the Ld. CIT(A) had powers to issue directions as per law in his appellate order passed? (2) Whether the direction given in the impugned case were valid or not?

10.

The powers of the Ld. CIT(A) are provided in Section 251(1)(A) of the Act which state as under:

“Powers of the 91 92[Commissioner (Appeals)]. 251. (1) In disposing of an appeal, the [*] [Commissioner (Appeals)] shall have the following powers- (a) In an appeal against an order of assessment, he may confirm, reduce, enhance or "annul the assessment [*]; [(aa) in an appeal against the order of assessment in respect of which the proceeding before the Settlement Commission abates under section 245HA, he may, after taking into consideration all the material and other information produced by the assessee before, or the results of the inquiry held or evidence recorded by, the Settlement Commission, in the course of the proceeding before it and such other material as may be brought on his record, confirm, reduce, enhance or annul the assessment;] (b) in an appeal against an order imposing a penalty, he may confirm or cancel such order or vary it so as either to enhance or to reduce the penalty: (c) in any other case, he may pass such orders in the appeal as he thinks fit. (2) The [***] [Commissioner (Appeals)] shall not enhance an assessment or a penalty or reduce the amount of refund unless the appellant has had a reason-able opportunity of showing cause against such enhancement or reduction."

ITA No.112/Ahd/2026 [Vanrajsinh Kahor Vs. The ITO, Ward-5(3)(2)] A.Y. 2015-16 - 5 – Explantion.-In disposing of an appeal, the [***] [Commissioner (Appeals)] may consider and decide any matter arising out of the proceedings in which the order appealed against was passed, notwithstanding that such matter was not raised before the [***] [Commissioner (Appeals)] by the appellant.” 11. Clearly as per Section 251 the CIT(A) can confirm, reduce, enhance or annul an Assessment Order. However, the explanation to Section 251 further provides that he may consider and decide any matter arising out of the proceedings in which the order appeal against was passed, notwithstanding that such matter was raised before the Commissioner Appeals by appellant.

12.

It is pertinent to look into provision of Section 150 of the Act also which was pointed out to us by the Ld. DR. The said section reads as under:

“Provision for cases where assessment is in pursuance of an order on appeal, etc. 150. (1) Notwithstanding anything contained in section 149, the notice under section 148 may be issued at any time for the purpose of making an assessment or reassessment or recomputation in consequence of or to give effect to any finding or direction contained in an order passed by any authority in any proceeding under this Act by way of appeal, reference or revision "for by a Court in any proceeding under any other law]. (2) The provisions of sub-section (1) shall not apply in any case where any such assessment, reassessment or recomputation as is referred to in that sub-section relates to an assessment year in respect of which an assessment, reassessment or recomputation could not have been made at the time the order which was the subject- matter of the appeal, reference or revision, as the case may be, was made by reason of any other provision limiting the time within which any action for assessment, reassessment or recomputation may be taken.”

ITA No.112/Ahd/2026 [Vanrajsinh Kahor Vs. The ITO, Ward-5(3)(2)] A.Y. 2015-16 - 6 – 13. Clearly section 150 of the Act deals with assessments in pursuance of an order on appeal etc., and sub-Section 1 clearly provides issuance of notices under Section 148 in consequence to or of or to give effect to any finding or direction contained in an order passed by any authority in any proceedings under this Act by way of appeal reference or revision. Reading Section 150 of the Act alongwith Section 250(1) of the Act, it is amply clear that the power of the Ld.CIT(A) to give direction is implicit. Ld. CIT(A) is well is empowered to give directions in his Appellate Order.

14.

The pleading of the Ld. Counsel for the assessee therefore, that the Ld. CIT(A) has no power in law to give any directions, I find is without any merit and is accordingly dismissed.

15.

The decision relied upon by the Ld. Counsel for the assessee in support of his contention that Ld.CIT(A) has no power to give directions, in the case of Vishwajeet Chatterjee (supra), I find, does not help the case of the assessee since in the facts of the said case the revenue had pleaded before the ITAT that the Ld. CIT(A) ought to have given directions in its order passed which was dismissed by the ITAT stating that while passing his appellate order the CIT(A) is not compulsorily required to give directions as per Section 251 of the Act. This is the limited purview in which the order of the ITAT in the case of Vishwajeet Chatterjee(supra) is to be read and not beyond it.

ITA No.112/Ahd/2026 [Vanrajsinh Kahor Vs. The ITO, Ward-5(3)(2)] A.Y. 2015-16 - 7 – 16. Coming to the next question regarding the direction given by the Ld. CIT(A) in the present case, I hold that the Ld. CIT(A) could not have simplicitor directed the AO to reopen the case of the preceding year and make addition therein of the amount paid for the purchase of immovable property of Rs.36.30 lacs. His direction to the AO could have been only to the extent of directing the AO to exercise his powers of reopening the case of the assessee for the preceding year for considering taxability of the said amount of investment, as per the prevailing position of law. The Ld.CIT(A)’s direction to the AO is therefore, modified to the extent of directing the AO to exercise his powers of reopening the case of the assessee for assessing the unexplained investment of Rs.36.30 lacs in A.Y 2014-15 as per law, leaving open all rights of the assessee to agitate against the same.

17.

In view of my above findings, the appeal of the assessee stands dismissed with the above directions.

This Order pronounced on 19/05/2026

Sd/- (ANNAPURNA GUPTA) ACCOUNTANT MEMBER Ahmedabad; Dated 19/05/2026 H.C. PS True Copy आदेश क� �ितिल�प अ�े�षत/Copy of the Order forwarded to : अपीलाथ� / The Appellant 1. 2. ��यथ� / The Respondent. संबंिधत आयकर आयु� / Concerned CIT 3. 4. आयकर आयु�(अपील) / The CIT(A)- �वभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 5.

ITA No.112/Ahd/2026 [Vanrajsinh Kahor Vs. The ITO, Ward-5(3)(2)] A.Y. 2015-16 - 8 – गाड� फाईल / Guard file. 6. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad

More judgments on Section 150

All 131 judgments and leading authorities on Section 150 →

Recent GST High Court judgments

Search GST case law →