VIKI VIJAY BALWADKAR,PUNE, MAHARASHTRA vs. INCOME TAX OFFICER WARD 2(2), PUNE , PUNE, MAHARASHTRA

Assessee has raised following grounds of appeal:-

1. On the facts and circumstance prevailing in the case and as per provisions and scheme of the Act it be kindly held that Assessment Proceeding so initiated u/s 147 r.w.s. 148 of the Act are invalid and void-ab-initio since the same is initiated without appropriate approval/sanction as required u/s 151 of the Act. Thus, the Assessment Proceedings so initiated be kindly held to be invalid and be kindly quashed.

1. 2. On the facts and circumstance prevailing in the case and as per provisions and scheme of the Act it be kindly held that Assessment Proceeding so Initiated as per provisions u/s 147 r.w.s 148 of the Act, as applicable prior to 31/03/2021, are invalid and void-ab-initio since the notice u/s 148 of the Act is issued on 01/04/2021 the Assessment Proceedings ought to have been initiated and carried according to the provisions applicable as on 01/04/2021. Thus, the Assessment Proceedings so initiated be kindly held to be invalid and be kindly quashed.

On the facts and circumstances prevailing in the case and as per provisions and scheme of the Income-tax Act, 1961 ('the Act') it be held that the addition of Rs. 20,50,500/- so made u/s 56(2) of the Act is not in accordance with the provisions of the Act. Accordingly, the addition so made be kindly deleted and appellant be granted just and proper relief in this respect.

Brief facts of the case are that the assessee is an individual and declared income of Rs. 69,300/- in the Return of Income filed for AY 2015-16. Ld. Assessing Officer (AO) based on the information about the investment made by the assessee for purchase of immovable Property from M/s Golden Trellis and there being difference between the sale consideration and stamp duty paid for the Property, Ld. AO issued notice u/s 148 and 142(1) of the Act. Due to non-compliance at the end of assessee, Ld. AO concluded the proceedings u/s 147 r.w.s. 144 of the Act and making various additions and assessed the income at Rs. 65,11,249/-

Now the assessee is in appeal before this Tribunal.

On the other hand Ld. Departmental Representative (DR) supported the order of both the lower authorities.

We have heard rival contentions and perused the record placed before us. Aggrieved with the additions of Rs. 64,28,500/-, the assessee has raised legal issues challenging the validity of issues u/s 148 of the Act and the reassessment proceedings and also raised grounds on merits. As per the settled judicial precedence, legal issues needs to adjudicated prior to dealing with merits of the case. Undisputedly legal issues raised in ground No. 1 and 2 have not been raised before Ld. CIT(A) nor any objection were raised before Ld. AO. Since the legal issues goes to the root cause of the additions, the same are admitted in light of the judgement of the Hon’ble Apex Court in the case of National Thermal Power Company Limited Vs. CIT (1998) 229 ITR 383 (SC).

So far as dealing with the legal issues raised for the first time in the instant appeal, the issue of this Tribunal’s power to adjudicate the ground raised

Respectfully following the above judgement of Hon’ble Delhi High Court, we find that since legal issues raised in ground No. 1 and 2 have been raised for the first time before this Tribunal we deem it appropriate to remit back both these legal issues to the file of Ld. CIT(A) for afresh adjudication. We also direct the assessee to place the judicial precedence in support of its legal grounds before Ld. CIT(A) alongwith other relevant details and documents.

So far as merits of the case are concerned since the assessee has not appeared before Ld. CIT(A) inspite of giving sufficient opportunity we in the interest of justice remit the remaining grounds No. 3, 4, 5 and 6 also to the file of Ld. CIT(A) for necessary adjudication. The assessee may file additional evidence in support of its grounds and Ld. CIT(A) may call for a remand report from the Ld. Jurisdictional Assessing Officer (JAO). Needless to mention that proper opportunity of hearing shall be granted to the assessee. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Effective grounds of appeal raised by the assessee are allowed for statistical purposes.

In the result, appeal of the assessee is allowed for statistical purposes.