CHANDER MOHAN BHATI,JAIPUR vs. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-4, JAIPUR, JAIPUR

ITA 732/JPR/2025Status: DisposedITAT Jaipur29 September 2025AY 2016-1744 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal, accepting the explanation that it was due to the Chartered Accountant's inadvertent omission. Regarding the first issue, the Tribunal noted that the learned CIT(A) had issued five notices under section 250 of the Act, to which the assessee did not respond. The Tribunal found no merit in the contention that principles of natural justice were violated, as ample opportunity was provided. Therefore, the appeal was not to be restored on this ground. On the second issue concerning the addition of Rs. 37,13,331/-, the Tribunal observed that the assessee had surrendered this amount as undisclosed income during search proceedings under section 132(4) but later retracted from this statement while filing the return of income. The Tribunal held that such retraction must be supported by strong evidence and be prompt. In the absence of specific, prompt retraction and supporting evidence, the Tribunal found no merit in the assessee's claim that no offer or surrender was made or legally retracted. The Tribunal upheld the observations of the Assessing Officer and the conclusions of the learned CIT(A) regarding the profit earned. On the third issue regarding the disallowance of Rs. 55,445/-, the Tribunal noted that the assessee claimed deduction for interest on a housing loan taken for a property owned by his wife, Smt. Laxmi Devi. The Tribunal found that the assessee failed to establish his claim by leading cogent and convincing evidence to support his claim or rebut the Assessing Officer's allegations. The alternative plea to allow the deduction in the hands of the wife was also not supported by any provision. Therefore, the Tribunal found no merit in the contention raised by the appellant challenging the second addition. The appeal was dismissed, sustaining the impugned order of the learned CIT(A).

What were the facts?

The assessee, Shri Chandra Mohan Bhati, filed an appeal before the ITAT challenging an order dated 18-12-2023 passed by the learned CIT(A), Jaipur-5, for the assessment year 2016-17. The Assessing Officer had made two additions to the assessee's total income: Rs. 37,13,331/- on account of undisclosed profit and Rs. 55,445/- by way of disallowance of deduction under section 24(b). The learned CIT(A) had issued five notices to the assessee, but received no response, and disposed of the appeal ex-parte. The present appeal before the ITAT was filed 428 days after the prescribed period of limitation, with the assessee seeking condonation of delay due to his Chartered Accountant's inadvertent omission to file the appeal within time. The delay was condoned based on affidavits from the assessee and his CA.

What were the issues?

1. Whether the learned CIT(A) erred in passing the impugned order on an ex-parte basis without properly appreciating the material on record and submissions made during assessment proceedings, thereby violating principles of natural justice, and if so, whether the appeal should be restored to the learned CIT(A) for fresh adjudication? (Section 250) - Assessee's contention: Principles of natural justice were not followed as no reasonable opportunity of being heard was provided, and the appeal should be restored. - Revenue's contention: Ample opportunity was granted through five notices, and the assessee remained non-compliant, thus the contention of no reasonable opportunity is without merit. 2. Whether the learned CIT(A) erred in confirming the addition of Rs. 37,13,331/- made by the Assessing Officer on account of undisclosed profit from the alleged sale of a plot and construction thereon, when the sale deed was not registered in the assessee's favour and the investment was allegedly out of undisclosed income? (Section 153A r.w.s. 143(3), Section 132(4)) - Assessee's contention: The addition is wrong and unjust. The assessee's written submissions were to be considered on merits. - Revenue's contention: The entire relevant material is on record, and the matter may be considered on merits. 3. Whether the learned CIT(A) erred in confirming the disallowance of Rs. 55,445/- claimed by the assessee on account of interest on self-occupied property under section 24(b) of the Act, on the ground that the assessee was only a co-applicant of the housing loan, and in not accepting the alternative plea that the deduction be allowed in the hands of the assessee's wife, the owner of the property? (Section 24(b)) - Assessee's contention: The deduction was claimed as per legal provisions, and the Assessing Officer and CIT(A) erred in disallowing it and not accepting the alternative plea. - Revenue's contention: Not recorded.

Which sections of the Income-tax Act were involved?

Section 24(b),Section 153A,Section 143(3),Section 250,Section 132(4),Section 271(1)(c)

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आयकरअपीलीय अधिकरण, जयपुरन्यायपीठ, जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, ''A” JAIPUR श्री गगन गोयल, लेखा सदस्य एवं श्री नरेन्द्र कुमार, न्यायिक सदस्य के समक्ष BEFORE: SHRI GAGAN GOYAL, AM & SHRI NARINDER KUMAR, JM आयकर अपीलसं. / ITA No. 732 /JP/2025 निर्धारणवर्ष / AssessmentYear : 2016-17 Shri Chandra Mohan Bhati 17, Kalyan Colony, Barkat Nagar Tonk Phatak, Jaipur – 302 015 बनाम Vs. The ACIT Central Circle-4 Jaipur स्थायीलेखा सं. / जीआईआर सं./PAN/GIR No.: AAΡΡΒ 4314 Η अपीलार्थी / Appellant प्रत्यर्थी / Respondent निर्धारिती की ओरसे / Assesseeby : Shri Rajnikant Bhatra,CA राजस्व की ओरसे / Revenue by: Smt. Anita Rinesh, JCIT . सुनवाई की तारीख / Date of Hearing : 24/09/2025 उदघोषणा की तारीख / Date of Pronouncement: 29/09/2025 PER: NARINDER KUMAR, JUDICIAL MEMBER Present appeal has been filed by the assessee challenging order dated 18-12-2023 passed by Learned CIT(A), relating to the assessment year 2016-17 passed by ld. CIT(A), Jaipur-5. 2. Vide assessment order dated 31.12.2019, the Assessing Officer, make two additions in recomputing the total income of the assessee at Rs.44,00,800/-.

3.

One addition of Rs.37,13,331/-was on account of undisclosed profit. The oth

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