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Facts
The assessee individual did not file a return of income. Information was received regarding the sale of immovable property for Rs. 1,72,00,000/- without disclosing capital gains. The assessment was reopened under section 147, but the assessee failed to respond to statutory notices, leading to an ex-parte assessment.
Held
The Tribunal noted the assessee's failure to respond to notices from the AO and CIT(A). However, considering the assessee's request for a final opportunity to substantiate their case, the Tribunal restored the issue to the CIT(A) for a fresh decision.
Key Issues
Whether the ex-parte assessment and confirmation of additions are sustainable when the assessee seeks a final opportunity to present their case before the lower appellate authority.
Sections Cited
147, 148, 142(1), 144, 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI R. K. PANDA & Ms. ASTHA CHANDRA
Assessment year : 2015-16 Gauri Shrikant Deo ITO, Ward-3(3), Pune M8, Chaitanyanagari, Karvenagar Vs. Warje, Pune – 411052 PAN: AQVPD4625R (Appellant) (Respondent) Assessee by : Shri Sharad A Vaze & Amod Vaze Department by : Shri Mukul Kulkarni (virtually) Date of hearing : 09-04-2026 Date of pronouncement : 10-04-2026 O R D E R PER R.K. PANDA, VP:
This appeal filed by the assessee is directed against the order dated 19.11.2025 of the Ld. CIT(A) / NFAC, Delhi relating to assessment year 2015-16.
Although a number of grounds have been raised by the assessee, however, these all relate to the ex-parte order of the Ld. CIT(A) / NFAC in confirming the addition made by the Assessing Officer on account of short term capital gain.
Facts of the case, in brief, are that the assessee is an individual and has not filed his return of income. Specific information was received from the Insight portal of the department according to which the assessee has sold immovable property amounting to Rs.1,72,00,000/- and not disclose the capital gain. Therefore, the case of the assessee was reopened as per the provisions of section 147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) and accordingly a notice u/s 148 of the Act dated 05.04.2023 was issued to the assessee. However, the assessee did not file any return in response to the notice u/s 148 of the Act. The subsequent notices issued u/s 142(1) of the Act were also remained un-complied with. The Assessing Officer, therefore, completed the assessment u/s 147 r.w.s. 144 r.w.s. 144B of the Act determining the total income of the assessee at Rs.1,72,00,000/-.
Since the assessee did not respond to the various statutory notices issued by the office of the Ld. CIT(A) / NFAC, the Ld. CIT(A) / NFAC in the ex-parte order passed by him dismissed the appeal filed by the assessee.
Aggrieved with such order of the Ld. CIT(A) / NFAC the assessee is in appeal before the Tribunal.
The Ld. Counsel for the assessee submitted that the reopening of the assessment is not in accordance with law and therefore, the same has to be quashed. In his alternate contention, he submitted that given an opportunity the assessee is in a position to substantiate his case by filing the requisite details.
The Ld. DR on the other hand heavily relied on the orders of the Assessing Officer and the Ld. CIT(A) / NFAC. He submitted that despite repeated opportunities granted by the Assessing Officer as well as the Ld. CIT(A) / NFAC, the assessee did not make any submission. Therefore, the addition made by the Assessing Officer and sustained by the Ld. CIT(A) / NFAC is justified.
We have heard the rival arguments made by both the sides, perused the orders of the Assessing Officer and the Ld. CIT(A) / NFAC and the paper book filed on behalf of the assessee. It is an admitted fact that due to non-response to the statutory notices issued by the Assessing Officer he completed the assessment u/s 147 r.w.s. 144 r.w.s. 144B of the Act determining the total income of the assessee at Rs.1,72,00,000/-. We find due to non-submission of any details before the Ld. CIT(A) / NFAC despite number of opportunities granted, he sustained the addition made by the Assessing Officer. 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 requisite details before the Ld. CIT(A) / NFAC. 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 Ld. CIT(A) / NFAC 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. The assessee is also hereby directed to submit the requisite details before the Ld. CIT(A) / NFAC on the appointed date without seeking any adjournment under any pretext, failing which the Ld. CIT(A) / NFAC 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 10th April, 2026.