Shamrao Gopal Benake Vs ITO (ITAT Pune)
CIT(A) cannot dodge legal grounds – ITAT Pune sets aside ex-parte remand case; Section 250(6) Mandate: Speaking Order Required
CIT(A) cannot dodge legal grounds – ITAT Pune sets aside ex-parte remand case Section 250(6) Mandate: Speaking Order Required, Remand Alone Not Enough Natural Justice Overrules: Non-Adjudication of Grounds Invalidates CIT(A)’s Order
Assessee, a cashew trader from Kolhapur, came under the tax net when the Income Tax Department detected huge cash deposits & withdrawals in his bank accounts. Despite such large-scale transactions, he had not filed a return of income for A.Y. 2018–19. AO, after issuing notices u/s 148A(b), reopened the case u/s 147 & ultimately framed an ex-parte best judgment assessment u/s 147 r.w.s. 144/144B, treating the return filed as invalid for want of verification.
In his order dated 01.03.2023, the AO added ₹1.58 crore as unexplained money u/s 69A. AO also estimated 10% profit on cash credits of ₹5.02 crore, taxing ₹50.20 lakh as business income. Thus, the total assessed income shot up to ₹2.09 crore against nil declared.
Assessee approached the CIT(A) challenging both the jurisdiction & the merits. Eight grounds were raised, including the validity of reopening proceedings & additions. However, CIT(A) did not adjudicate any of the legal grounds. Instead, invoking the newly inserted proviso to Section 251(1)(a) (effective 01.10.2024), the appellate authority chose to set aside the assessment & remand the matter to AO for de novo adjudication. Appeal was thus disposed of for statistical purposes, leaving Assessee dissatisfied.
