MADHAV VINAYAK DHADPHALE,PUNE vs. DCIT, PUNE
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Income Tax Appellate Tribunal, PUNE “SMC” BENCH : PUNE
Before: SHRI SATBEER SINGH GODARA
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE “SMC” BENCH : PUNE BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER I.T.A.No.4/PUN./2024 [E-APPEAL] Assessment Year 2014-2015
Shri Madhav Vinayak The DCIT, Circle-2, Dhadphale, 401, National Faceless Assessment Venkatesh Villa, 1204/9, Centre, PMT Bldg., Swargate, vs. Shivajinagar Ghole Road, PUNE - PIN – 411 037. PUNE – 4 PAN AAXPD0624Q Maharashtra. Maharashtra. (Appellant) (Respondent)
For Assessee : Shri R.D. Omkar For Revenue : Shri Somnath M Wajale
Date of Hearing : 22.04.2024 Date of Pronouncement : 17.05.2024 ORDER
This assessee’s appeal for assessment year 2014-15,
arises against the National Faceless Appeal Centre [in short
the “NFAC”] Delhi’s Din and Order No. ITBA/NFAC/S/250/
2023-24/1057931314(1), dated 14.11.2023, in proceedings
u/s.147 of the Income Tax Act, 1961 (in short “the Act”).
Heard both the parties. Case file perused.
The assessee pleads the following substantive
grounds in the instant appeal :
“On the facts and circumstances of the case and in Law –
The learned CIT-A erred in upholding the reopening and
confirming the addition of Rs.3,75,500/- to the income of
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the appellant made by the AO in the order of reassessment
passed u/s 147 read with 144B of the Act.
The learned CIT-A erred in not appreciating that even
where proceedings under Section 147 were sought to be
taken with reference to an intimation framed earlier under
Section 143(1), the ingredient of Section 147 viz. “reason to
believe that income chargeable to tax has escaped
assessment”, had to be fulfilled as held by Honourable
Supreme Court in Asstt. CIT v. Rajesh Jhaveri Stock
Brokers (P). Ltd. [2007] 291 1TR 500 and that the said
ingredient did not exist in the appellant’s case.
The learned CIT-A failed to appreciate that the receipt of
information as stated by the AO in the notice issued u/s
143 (2) read with Section 148 of the Act regarding
premature of surrender of LIC policy by the assessee
Madhav Vinayak Dhadphale during the TY 2013-14
relevant to AY 2014-15 received from ITO(I & CI-2), Pune
vide letter dated 05.02.2019 did not constitute information
as contemplated under the provisions of Section 148 of the
Act and there was no reason to believe or that the alleged
reason to believe was not at all germane or relevant for the
formation of the belief that appellant’s income chargeable
to tax has escaped assessment.
The learned CIT-A failed to appreciate that the aforesaid
so called information/reason had nothing to do with the
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subsequent submission made by the appellant in response
to notice u/s 133 (6) regarding the claim for deduction of
insurance premiums made under distinct different
insurance policy in the previous years 2011-12 to 2013-
5. The learned CIT-A erred in not appreciating the fact that
the single premium of Rs.10 lakhs paid by the appellant in
the previous year relevant to the A.Y. 2011-12 was for
investment in Market Plus plan of Life Insurance
Corporation (Policy number 957579673) for receiving
pension from the fund and the said amount was never
claimed as deduction in the computation of total income for
the said A.Y. 2011-12 and therefore the entire amount
standing to the credit of fund Rs.10,75,500/- (including
surplus Rs.75,500) withdrawn in the previous year
relevant to the A.Y. 2014-15 before the expiry of five years
was not at all taxable in the hands of the appellant and
the provisions of Section 80CCC(2) of the Act were not at
all attracted in such fact situation.
The learned CIT-A further erred in not appreciating the fact
that in any event the surplus amount Rs.75,500/- received
by the appellant in A.Y. 2014-15 was well below the limit
of Rs. 1 lakh prescribed and applicable at then point
intime in respect of escapement income chargeable to tax
as laid down in Section 149 for the purpose of issuing
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notice u/s 148 for reopening the assessment and the
notice u/s 148 violated the provisions of law.
The learned CIT-A failed to appreciate that claim for
deduction of life insurance premiums totalling to Rs.3
lakhs consisting of Rs.1 lakh in each of the three previous
years 2011-12 to 2013-14 paid by the appellant under a
different and distinct insurance policy were not part of or
related to investment of Rs.10 lakhs in pension fund policy
of LIC and the disallowance of legitimate claim of
Rs.3,00,000/- only led to dilation of the amounts so as to
somehow reach the threshold of Rs.1 lakh stipulated in
Section 149.
It is prayed that the entire amount of disallowance of
Rs.3,75,500/- be deleted.
Your appellant craves leave to add to, alter, modify or
delete from the above grounds of appeal.”
Learned counsel is fair enough in only pressing for
the assessee’s foregoing substantive grounds on merits
regarding the twin disallowance(s) herein i.e., sec.80CCC(2)
and 80C of the Act, involving varying sums, respectively. His
first vehement submission is that neither the assessee had
been allowed the impugned former deduction u/sec.80CCC(1)
so as to result in the impugned disallowance(s) under sub-
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sec.2 thereof nor had he ever claimed any relief qua the latter
sum hereinabove.
Learned DR could hardly rebut the fact that these
clinching aspects have nowhere been satisfied either in the
assessment order or in the lower appellate discussion. Faced
with this situation, I restore the instant issue(s) back to the
Assessing Officer for his afresh appropriate adjudication as per
law, subject to the rider that it is the assessee’s sole risk and
responsibility to prove the case in consequential proceedings.
Ordered accordingly.
This assessee’s appeal is partly allowed for
statistical purposes in above terms.
Order pronounced in the open Court on 17.05.2024.
Sd/- [SATBEER SINGH GODARA] JUDICIAL MEMBER Pune, Dated 17th May, 2024
VBP/- Copy to 1. The appellant 2. The respondent 3. The Pr. CIT, Pune concerned 4. D.R. ITAT, “SMC” Bench, Pune. 5. Guard File. //By Order//
//True Copy //
Sr. Private Secretary, ITAT, Pune Benches, Pune.
