KAILASH RADHAKRISHNA KSHIRSAGAR,JALNA vs. THE INCOME TAX OFFICER, WARD-1, JALNA
Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI R. K. PANDA & Ms. ASTHA CHANDRAAssessment year : 2013-14
PER R.K. PANDA, VP:
This appeal filed by the assessee is directed against the order dated
14.09.2023 of the Ld. CIT(A), Pune-11 relating to assessment year 2013-14. 2. Facts of the case, in brief, are that the assessee is an individual and engaged in the business of supply of building material, trading in plotting, builder and construction of houses, row-houses etc. He is also a partner in the firm of M/s.
Ekdant Developers, Mastgad, Jalna. The assessee filed belated return of income on 25.12.2013 declaring total taxable income of Rs.5,95,779/- after claiming deduction of Rs.1,00,000/- under Chapter VI-A.
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3. The Assessing Officer noted that an action u/s 133A of the Income Tax Act,
1961 (hereinafter referred to as ‘the Act’) was conducted on 13.03.2015 in the case of M/s. Ekdant Developers, Mastgad, Old Jalna in which there were 4 partners including the assessee. He noted that during the course of this action certain books of account including some incriminating material were impounded and the statement of the assessee was also recorded. He observed on verification of the impounded material that the said impounded material contains a copy of Non-
Judicial stamp paper of Rs.100/- bearing No.ER226450 dated 08.02.2012. As per the relevant details it was noticed that the said stamp paper was purchased by the assessee for himself personally on 11.04.2012. The said stamp paper contains certain transactions of purchase of plots. He, therefore, concluded that the assessee has executed an agreement to sell which constitutes the transaction relating to business and receipt of money at Rs.45 lakhs was the adventure in the nature of trade and liable to be taxed in the hands of the assessee as per provisions of section 28 of the Act. The Assessing Officer referred to the contents of the agreement, statement of the assessee recorded during the course of search and cost of purchase of the plot at Rs.5 lakhs which remained unexplained and accordingly made addition of Rs.50,05,000/- to the total income of the assessee by observing as under:
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4. In appeal the Ld. CIT(A) dismissed the appeal by observing as under:
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5. Aggrieved with such order of the Ld. CIT(A) the assessee is in appeal before the Tribunal by raising the following grounds:
1. ADDITION OF ALLEGED BUSINESS RECEIPT OF ₹ 45,05,000/- U/S 28
OF THE ACT
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1.1
The Learned Commissioner of Income tax (Appeals) 11, Pune ['the Ld
CIT(A)] has erred confirming the additions made of alleged business receipt of ₹ 45,05,000/- without considering the submission filed.
2 The Ld. CIT erred in rejecting the additional evidence filed as per Rule 46A of the Income Tax Rules, 1962. 1.3 In the facts and circumstances of the case and in law it is humbly submitted that no addition is warranted in the present case and therefore deserves to be deleted.
4 Without prejudice to the above, the Ld. CIT(A) as well as the Ld. AO erred in not granting the deduction of the alleged purchase cost against the alleged business receipt.
ADDITION OF ALLEGED INVESTMENT OF ₹ 5,00,000/- U/S 69 OF THE ACT
1 The Ld. CIT(A) has erred in confirming the addition made of alleged investment of ₹ 5,00,000/- without considering the submission filed.
2 The Ld. CIT(A) failed to appreciate the documents submitted before him and confirmed the addition. Provision of section 69 of the Act is attracted in the present case.
3 On the facts and circumstances of the case and in law the addition deserves to be deleted.
LIBERTY
The Appellant craves leave to add, alter, amend, delete or substitute any of the above grounds of appeal.
The Ld. Counsel for the assessee at the outset submitted that the Ld. CIT(A), without admitting the additional evidences filed before him, dismissed the appeal which is not justified. He submitted that these additional evidences go to the root of the matter, therefore, the Ld. CIT(A) should have admitted the additional evidences and forwarded the same to the Assessing Officer for obtaining a remand report from the Assessing Officer and then decided the issue as per fact and law. However, he has failed to do so. Therefore, he has no objection if the matter is set aside to the file of the Assessing Officer with a direction to consider the additional evidences and decide the issue as per fact and law.
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7. The Ld. DR on the other hand while supporting the order of the Ld. CIT(A) submitted that despite opportunities granted the assessee never produced these details before the Assessing Officer. Further, the so-called affidavit dt 19.02.2019
is subsequent to the completion of the assessment proceedings and in the nature of additional evidence. The assessee has not filed proper application as per Rule 46A of the IT Rules, 1962. He accordingly submitted that the order of the Ld. CIT(A) be upheld.
We have heard the rival arguments made by both the sides, perused the orders of the Assessing Officer and the Ld. CIT(A) and the paper book filed on behalf of the assessee. We have also considered the various decisions relied on by both sides. We find the Ld. CIT(A) did not accept the additional evidences filed before him on the ground that the assessee has not filed any application under Rule 46A as per para 16.1 of his order. Since it is the submission of the Ld. Counsel for the assessee that given an opportunity, the assessee is in a position to substantiate his case by filing the relevant details before either of the lower authorities justifying his case, therefore, considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Assessing Officer with a direction to grant one final opportunity to the assessee to substantiate his case by filing the requisite details and decide the issue as per fact and law after providing due opportunity of being heard to the assessee. The assessee is also hereby directed to submit the requisite details before the Assessing Officer on the appointed date without seeking any adjournment under any pretext,
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failing which the Assessing Officer is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open Court on 29th December, 2025. (ASTHA CHANDRA)
VICE PRESIDENT
पुणे Pune; दिन ांक Dated : 29th December, 2025
GCVSR
आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to:
अपील र्थी / The Appellant; 2. प्रत्यर्थी / The Respondent
4. The concerned Pr.CIT, Pune DR, ITAT, ‘A’ Bench, Pune 5. ग र्ड फ ईल / Guard file.
आदेशानुसार/ BY ORDER,
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