KISHOR MOHAN DHAPEKAR THROUGH CHHATRAPAL DHAPEKAR,NAGPUR vs. INCOME TAX OFFICER, WARD - 3(4), NAGPUR

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ITA 278/NAG/2026Status: DisposedITAT Nagpur13 October 2026AY 2017-184 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal, considering the submissions and the principles of natural justice, decided to provide the assessee with one more opportunity to substantiate their legal grounds and merits. The Tribunal set aside the order of the CIT(A) and remitted the entire disputed issues back to the file of the CIT(A) for fresh adjudication. The assessee was directed to be provided with adequate opportunity of hearing and was expected to cooperate in submitting information for early disposal. The grounds of appeal were allowed for statistical purposes. The specific finding on the validity of the Section 148 notice was not adjudicated, as the matter was remitted.

What were the facts?

The assessee, Late Kishor Dhapekar (represented by Legal Heir Chhatrapal Dhapekar), filed an appeal against the order of the NFAC/CIT(A) concerning assessment year 2017-18. The Assessing Officer (AO) initiated reassessment proceedings under Section 147 after receiving information that the assessee had declared income under the Income Declaration Scheme, 2016, but failed to pay the taxes. The AO issued a notice under Section 148 and subsequently a notice under Section 142(1). As there was no response from the assessee, the AO made an addition of Long Term Capital Gains and assessed total income at Rs. 40,26,268/- under Section 147 read with Section 144. The CIT(A) set aside the assessment order and restored the issues to the AO for fresh adjudication, relying on Section 251(1)(a). The assessee then appealed to the ITAT.

What were the issues?

1. Whether the CIT(A) erred in restoring the issues to the file of the Assessing Officer for fresh adjudication, instead of adjudicating the legal grounds of appeal on the validity of the reassessment notice issued under Section 148 of the Income Tax Act, 1961? (Question of law and fact, turning on Section 148 and Section 251(1)(a)). Assessee's Contentions: The assessee argued that the CIT(A) failed to decide the ground challenging the validity of the Section 148 notice. The assessee also claimed to have a strong case on merits and sought an opportunity to present evidence. Revenue's Contentions: The Revenue supported the order of the CIT(A).

Which sections of the Income-tax Act were involved?

Section 147,Section 144B,Section 250,Section 148,Section 142(1),Section 144,Section 251(1)(a)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR “SMC” BENCH :: NAGPUR

Before: SHRI PAVAN KUMAR GADALE

Hearing: 08.10.2026Pronounced: 13.10.2026

The assessee has filed the appeal against the order of NFAC/CIT(A) passed u/sec 147 r.w.s. 144B and u/sec 250 of the Income Tax Act. The assessee has raised the grounds of appeal challenging the order of the CIT(A) sustaining the addition made by the Assessing Officer and not adjudicating the legal grounds of appeal on the validity of reassessment. 2. The brief facts of the case are that, the Income Tax Department has received information that in the F.Y. 2016-17, the assessee has opted IDS Scheme, 2016 but failed to pay the taxes on the declared income. The Assessing Officer (A.O)

has a reason to believe that the income has escaped assessment and fallowed the due process of law and issued notice u/sec. 148 of the Act on 31.03.2021. Further, notice u/sec. 142(1) of the Act was issued requesting the assessee to file certain details and information in support of the transactions and there was no response. The A.O find that the assessee has not made submissions on the disputed issue in spite of providing adequate opportunities of hearing and finally the A.O considering the information available on record has invoked the provisions of section 144 of the Act and made addition of Long Term Capital gains and assessed the total income of Rs.40,26,268/- and passed the order u/sec. 147 r.w.s. 144 of the Act dated 24.03.2022. 3. Aggrieved by the order, the assesse has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts, submissions and findings of the AO and has issued notices of hearing and since there was compliance by the assessee to notices. Therefore the CIT(A) considering the information on record observed that since the assessment was completed u/sec144 r.w.s147 of the Act and relied on the provisions of section 251(1)(a) of the Act and has set-aside the assessment order and restore the issues to the file of the assessing officer for fresh adjudication. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal. 4. At the time of hearing, the Ld.AR submitted that the CIT(A) has erred in restoring the issues to the file of the assessing officer for fresh adjudication and has not adjudicated the ground of appeal on validity of issue of notice u/sec148 of the Act Further the Ld.AR mentioned that the assesse has a good case on merits and shall substantiate with the material evidences and prayed for an opportunity to explain before the authorities. Per Contra, the Ld.DR supported the order of the CIT(A).

5.

Heard the rival submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that the assessment was completed u/sec144 r.w.s147 of the Act and relied on the provisions of section 251(1)(a) of the Act and set- aside the assessment order and restored the issue to the file of the assessing officer for fresh adjudication. Whereas the Ld.AR submitted that the CIT(A) has not adjudicated the ground of appeal on validity of issue of notice u/sec148 of the Act. Whereas the assessee has raised grounds of appeal challenging the addition of long term capital gains. Further the assessee has raised grounds of appeal challenging the addition and legal, technical and jurisdictional issues. Therefore, considering the facts, submissions and principles of natural justice, shall provide with one more opportunity of hearing to the assessee to substantiate the legal grounds and on merits. Accordingly, set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate afresh and the assesse 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 assessee are allowed for statistical purpose.

6.

In the result, the appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open Court on 13th October, 2026. Sd/- PAVAN KUMAR GADALE (JUDICIAL MEMBER) Pune, Dated: 13th October, 2026 vr/- आदेशकीप्रतितितिअग्रेतिि / Copy of the Order forwarded to : अिीिार्थी / The Appellant. 1. प्रत्यर्थी / The Respondent. 2. 3. The Pr. CIT concerned. 4. तिभागीय प्रतितिति, आयकर अिीिीय अतिकरण, “SMC” बेंच, नागपूर / DR, ITAT, “SMC” Bench, Nagpur. गार्डफ़ाइि / Guard File. 5. //True Copy//

आदेशािुसार / BY ORDER, Vukkem Digitally signed by Vukkem Rambabu Rambabu Date: 2026.10.13 17:53:40 +05'30' Assistant Registrar/Sr.PS, आयकर अिीिीय अतिकरण,/ ITAT, Nagpur.

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