Santosh Arun Kaspate Vs DCIT (ITAT Pune)
CIT(A) Cannot Dismiss Appeal Without Condoning Delay—Quantum and Penalty Matters Remanded
In Santosh Arun Kaspate v. DCIT, Circle-8, Pune (ITA Nos. 2198 & 2199/PUN/2025; AY 2013-14), the ITAT Pune Bench dealt with two connected appeals—one against the quantum assessment and the other against penalty under Section 271(1)(c).
The assessee’s appeal before CIT(A)/NFAC was dismissed solely on the ground of delay of about 11 months, without adjudicating the condonation petition and without deciding any grounds on merits. The assessment involved additions on account of unsecured loans (₹78 lakh), cash deposits (₹10 lakh), and commission expenditure (₹23.58 lakh).
The Tribunal held that:
- CIT(A) is duty-bound to first adjudicate the condonation of delay.
- Summary dismissal without condoning delay or examining grounds violates principles of natural justice.
- Once the quantum appeal is restored, the penalty appeal automatically becomes consequential and must also be restored.
Decision & Directions:
- Orders of CIT(A)/NFAC set aside.
- Delay directed to be condoned.
- Both quantum and penalty appeals remanded to CIT(A)/NFAC for fresh adjudication on merits, after granting reasonable opportunity to the assessee.
- All appeals allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT PUNE
Both the above captioned appeals filed by the assessee are directed against the separate orders dated 25.07.2025 passed by Ld. CIT(A)/NFAC for the assessment year 2013-14 respectively.
