BALARAM MHATRE,DOMBIVLI vs. INCOME TAX OFFICER , KALYAN
IN THE INCOME TAX APPELLATE TRIBUNAL
“K (SMC)” BENCH, MUMBAI
BEFORE SHRI PAWAN SINGH, HON’BLE JUDICIAL MEMBER
SHRI GIRISH AGRAWAL, HON’BLE ACCOUNTANT MEMBER
(Physical hearing)
Balaram Mhatre,
1103/04, Building No. 17/C, Freesia
Regency Estate, Kalyan Shil Road,
Near Jhondale Engineering College,
Dombiwali (E), Mumbai-421203,
Assessee Represented by :
Shri Subodh Ratanparkhi CA
Department Represented by :
Shri Kiran Unavekar, Sr DR
Date of Conclusion of hearing
:
27.03.2025
Date of Pronouncement of Order
:
05.05.2025
Order under section 254(1) of Income Tax Act
PER PAWAN SINGH, JUDICIAL MEMBER;
1. This appeal by the assessee is directed against the order of National Faceless
Appeal Centre (NFAC) / CIT(A) dated 1301.2025 for the A.Y. 2019-20.Though the assessee has raised multiple grounds of appeal, however, in our considered view, the substantial grounds of appeal relates to validity of reopening under section 147 and the addition of Rs.33,58,000/- made under section 69C in the assessment order dated 12.02.2024. 2. Rival submissions of Learned Authorised Representative (Ld.AR) of the assessee and Learned Senior Departmental Representative (Sr. DR) have been heard and record perused. The ld. AR of the assessee submits that case of assessee for AY
2019-20 was reopened on the basis of information that assessee purchased
Balaram B. Mhatre (AY 2019-20) immovable property form GNP Group and made payment of on money of Rs.
38,58,000/-. The assessee objected to the reopening and besides other submissions, the assessee submitted that addition of similar amount has already been made in AY 2018-19, which is subject matter of further appeal before ld
CIT(A). The Assessing Officer (AO) proceeded for assessment and made addition of Rs. 38,58,000/- on protective basis. On further appeal before ld CIT(A), the action of AO was upheld in ex-parte order. The ld CIT(A) not adjudicated the grounds of appeal on merit despite the facts that the assessee filed his detailed submissions and various evidence on 15.04.2024, copy of screen shot of ITBA portal is filed. The ld AR of the assessee submits that once the additions of similar amount was added in earlier year, it cannot be added again, so the assessment order may be quashed. The ld AR of the assessee in alternative submissions and in all his fairness submits that the matter may be restored back to the file of Juri ictional AO to verify such facts and to pass order after order in appeal for AY 2018-19. 3. On the other hand, Sr. DR for the revenue supported the orders of lower authorities and would submits that the addition is to be made in the year in which the assessee made payment of impugned money to GNP Group. On the alternative submissions the ld Sr DR for the revenue submits that he has no objection if the matter is restored back to the file of AO.
4. We have considered the rival submission of both the parties and have gone through the orders of lower authorities carefully. We find that the AO made
Balaram B. Mhatre (AY 2019-20) addition of Rs. 38,58,000/- under section 69B on protective basis. We find that the stand of the assessee even before AO was that the same amount has already been added in earlier year. Despite recording such fact, the AO has not countered such fact and made addition by taking view that as per information available with him the assessee has made cash payment in AY 2019-20. The ld
CIT(A) confirmed the action of AO in ex-parte order. On considering the peculiar facts of the case that the AO has made protective addition without specifying the facts as to in which year the substantive addition is made, the matter is restored back to the file of juri ictional AO to verify the fact and if similar amount is added in AY 2018-19, passed order afresh after outcome of decision in AY 2018-
19. In the result, the grounds of appeal raised by the assessee are allowed for statistical purpose.
5. In the result, appeal of the assessee is allowed for statistical purpose.
Order pronounced in the open Court on 05th May, 2025. GIRISH AGRAWAL
ACCOUNTANT MEMBER PAWAN SINGH
JUDICIAL MEMBERs
MUMBAI, DATED: 05.05.2025
Self
Copy of the order forwarded to:
(1)
The Assessee;
(2)
The Revenue;
(3)
The PCIT / CIT (Judicial);
(4)
The DR, ITAT, Mumbai; and (5)
Guard file.
By Order