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Facts
The assessee filed an appeal against the order of the CIT(A) for AY 2019-20. The assessment order under Section 147 accepted the returned income without any addition. However, the CIT(A) confirmed an addition of Rs. 32,73,500/-, which was not made by the Assessing Officer.
Held
The Tribunal held that the order of the CIT(A) was bad in law as it confirmed an addition that was not made by the Assessing Officer and without any notice for enhancement. The CIT(A) had not properly read the assessment order.
Key Issues
Whether the CIT(A) can confirm an addition that was not made by the Assessing Officer and without issuing a notice for enhancement. Whether the CIT(A) order is sustainable when it does not rely on the assessment order.
Sections Cited
250, 147, 144, 144B, 148, 149, 251(2), 251, 271DA
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “SMC” :: PUNE
Before: DR.DIPAK P. RIPOTE & SHRI VINAY BHAMORE
Assessment Year: 2019-20 Madan Namdev Kamthe, V The Income Tax Officer, Plot NO.43, S.No.22, Kojagiri s Ward-5(2), Pune. Sahakari Gruhrachana Society, Balajinagar, Dhankawadi, Pune – 411043. PAN: ASVPK9249G Appellant/ Assessee Respondent / Revenue Assessee by Shri Sarvesh Khandelwal Revenue by Shri Harshit Bari – Addl.CIT(Virtual) Date of hearing 18/12/2025 Date of pronouncement 22/12/2025 आदेश/ ORDER
PER DR. DIPAK P. RIPOTE, AM:
This is an appeal filed by the Assessee against the order of ld.Commissioner of Income Tax(Appeal)[NFAC] passed under section 250 of the Income Tax Act, 1961 for the A.Y.2019-20 dated 21.08.2025 emanating from the Assessment Order passed under section 147 r.w.s 144 r.w.s 144B of the Act, dated 04.03.2024. The Assessee has raised the following grounds of appeal :
[A] “1. On facts and circumstances prevailing in the case and as per provisions of the act it be held, that the order passed by the CIT Appeals, NFAC is not tenable in law in as much as the CIT Appeals confirmed the addition which was never made by the Assessing Officer, that too without serving any notice of enhancement. The order passed by the CIT Appeals be cancelled.
On facts and circumstances prevailing in the case and as per provisions of the act it be held, that CIT Appeals has failed to take into consideration the provisions of section 149 of the Income Tax Act in as much as the additions confirmed are less than Rs. 50,00,000/-. The additions so confirmed be deleted.
a. The appellant prays to be allowed to raise, modify, rectify, and withdraw any grounds of appeal at the time of hearing.”
Submission of ld.AR : 2. The ld.Authorised Representative(ld.AR) for the Assessee submitted that in the assessment order, there is no addition. Assessing Officer has accepted returned income. Ld.AR further submitted that the assessee does not understand Income Tax and his Tax Consultant erroneously filed appeal before ld.CIT(A). Ld.CIT(A) has mentioned in the order that addition of 2 Rs.32,73,500/- is confirmed. However, in the assessment order, there is no such addition. Therefore, the order of ld.CIT(A) is bad in law. Ld.CIT(A) had not given any notice for enhancement.
Submission of ld.DR : 3. Ld.Departmental Representative(ld.DR) for the Revenue accepted that Assessing Officer had accepted returned income, hence, there was no need to file appeal before ld.CIT(A).
Findings & Analysis : 4. We have heard both the parties and perused the records. In this case, Assessee had filed return of income for A.Y.2019-20 declaring total income at Rs.5,75,540/-. Assessing Officer issued notice under section 148 dated 24.03.2023, then, Assessing Officer issued various notices. The Assessing Officer in the assessment order accepted that the immovable property sold is rural agricultural land and hence, not a capital asset under Income Tax Act, hence, sale proceeds from sale of the immovable property are exempt. The last paragraph no.4 of the assessment order is reproduced here as under :
[A] “4. Assessed under section 147 r.w.s. 144B of the Income Tax Act at returned income of Rs.5,75,540/-. Penalty proceedings under section 271DA have been initiated through notice issued separately.”
4.1 Thus, it can be observed that in the assessment order returned income of Rs.5,75,540/- have been accepted without making any addition.
However, it is noted that Assessee had filed appeal before ld.CIT(A). It has been pleaded by ld.AR for the Assessee that Assessee under wrong guidance of Tax Consultant filed appeal before ld.CIT(A).
We have studied the order under section 250 of the Income Tax Act. In the said order, ld.CIT(A) has accepted that no capital gain was applicable on the sale of rural agricultural land. It is also noted that ld.CIT(A) had not mentioned in the order issue of any notice under section 251(2) of the Act, for any enhancement. In the order, ld.CIT(A) has not referred to Section 251 at all. Ld.CIT(A) has mentioned as under : “…………Therefore, the addition of Rs.32,73,500/- made by the AO during the assessment proceedings is upheld and grounds of appeal filed by the assessee are dismissed.”
7. We have already mentioned that in the assessment order, returned income has been accepted without making any addition. Therefore, the observation of the ld.CIT(A) confirming the addition of Rs.32,73,500/- are erroneous and unsustainable in Law. Ld.CIT(A) has not read the assessment order and merely confirmed the addition which is not mentioned in the assessment order.
In these facts and circumstances of the case, we set-aside the order of ld.CIT(A) as it is not as per law. Accordingly, the addition of Rs.32,73,500/- is directed to be deleted. Hence, grounds of appeal raised by the assessee are allowed.
In the result, appeal of the assessee is allowed. Order pronounced in the open Court on 22 December, 2025.