SACHIN BHAGAWAN NALAGE,KOLHAPUR vs. INCOME TAX OFFICER WARD 1(1), KOLHAPUR

The assessee has raised the following grounds of appeal:-

On the other hand, Ld.DR submitted that this legal ground has been raised for the first time before this Tribunal.

We have heard the rival contentions of both the parties and perused the record placed before us. We notice that the assessee who is an individual declared total income of Rs. 5,48,658/- in the return of income for the A.Y. 2017-18. Based on the information about the alleged unexplained cash credit/investment of the assessee with M/s. Shri Renuka Mata Multi State Urban Co-op. Credit Society Ltd., the assessee was issued a notice u/sec. 148 of the Act for carrying out the re-assessment proceedings. In the course of the re-assessment proceedings, certain submissions were filed, but they were not sufficient to satisfy the Ld.AO who observed that assessee has categorically failed to furnish any details relating to business/profession activities undertaken by him, details of bank accounts held jointly/individually, the source of investments made by him/father in the above referred credit society and certain other details also. The Ld.AO concluded the proceedings making addition of Rs. 48,29,995/-.

The assessee challenged the addition before the Ld. CIT(A) and in Form No.35 along with raising grounds on merits also raised ground challenging the validity of re-assessment proceedings. However, Ld. CIT(A) on considering the submissions filed by the 3 ITA.No.888/PUN./2025 (Sachin Bhagawan Nalage) assessee has remanded the issues back to the file of the Ld.AO observing that the matter requires further verification and accordingly, set aside the assessment to the Ld.AO in terms of the proviso to sec. 251(1)(a) for making fresh assessment. Even though, Ld. CIT(A) has remanded the issues to the Ld.AO, the assessee preferred appeal before this Tribunal and has raised new legal ground challenging the validity of notice issued u/sec. 148 being barred by limitation. Since this legal issue has been raised for the first time, but the same goes to the root cause of the assessment proceedings in question, we admit the legal ground. However, since the same has not been raised before the Ld. CIT(A), there is no finding on the said issue by the first appellate authority and therefore, it needs to be remanded back to the lower authorities. However, since Ld. CIT(A) has also remanded back the issues raised before him to the Ld.JAO, we remit back all the issues in the instant appeal to the file of the Ld.JAO before whom the assessee can raise the necessary issues about the validity of re- assessment, validity of notice issued u/sec. 148 along with issues raised on merits for which a reasonable opportunity of being heard shall be granted to the assessee. The Ld.JAO shall thereafter carryout denovo assessment proceedings in accordance with law. Assessee is also directed to remain vigilant and not to take adjournments unless otherwise required for reasonable cause and furnish all the details in support of grounds of appeal. All the grounds of appeal raised by the assessee are allowed for statistical purposes.