Ravindra Jaisingrao Chavan Vs ACIT (ITAT Pune)
Pune Tribunal has set aside the revisionary order passed u/s 263 for violation of natural justice, holding that the assessee was not given fair opportunity of hearing before the PCIT passed the order. The Bench observed that the entire proceedings u/s 263 had been completed in undue haste within a span of barely one week & that several new factual aspects were considered in the impugned order without confronting them to Assessee.
Assessee, an individual engaged in the business of manufacturing & sale of crushed sand in the name of M/s. Kalpataru Buildcon, filed his return of income for AY 2021-22 declaring ₹22,31,180. A survey u/s 133A was conducted on 05.03.2021 & certain books, a “black diary,” & mobile WhatsApp backups were impounded. Assessment was completed u/s 143(3) on 30.12.2022 determining income at ₹2.11 crore after making an addition of ₹1.89 crore towards long-term capital gain.
Subsequently, the PCIT (Central), exercising his revisionary powers u/s 263, issued a show-cause notice on 10.03.2025 alleging that AO had failed to verify the nature of land sold at Chhindwara, the on-money receipts reflected in the diary, & the treatment of income under the head “Capital Gains” instead of “Business Income.” PCIT also alleged non-offering of profit of ₹59.99 lakh on sale of plots. In response, Assessee furnished a written submission on 17.03.2025, but no further hearing was granted. Within eight days, PCIT passed the impugned order on 25.03.2025, holding the assessment to be erroneous & prejudicial to the interests of the Revenue.
