Chetan Jeevanrao Jadhav Vs ITO (ITAT Pune)
Failure to Decide Legal Ground – CIT(A)/NFAC Ignored Legal Issue on Reopening u/s 147 Instead of 153C- ITAT Pune Remands Case to CIT(A)/NFAC for Fresh Adjudication
Both appeals filed by Assessee were against separate orders of CIT(A)/NFAC dated 05.12.2024 & 06.12.2024. The facts & issues being common, Tribunal disposed them by a consolidated order.
For AY 2014-15, Assessee filed return declaring income of ₹1.99 lakh. The case was reopened u/s 147 after due approval, & notice u/s 148 was issued on 31.03.2021. Since no return or reply was filed, AO completed assessment u/s 147 r.w.s. 144, determining income at ₹36.96 lakh, including addition of ₹34.97 lakh u/s 69 r.w.s. 115BBE on unexplained transactions in savings account.
In appeal, CIT(A)/NFAC partly allowed the case by setting aside the assessment & remanding it to AO for de novo adjudication. However, the legal ground challenging reopening u/s 147 instead of u/s 153C was not adjudicated.
Before Tribunal, Assessee contended that CIT(A)/NFAC erred in not deciding this legal ground first, as mandated u/s 250(6). Department argued that no prejudice was caused since the matter had already been remanded to AO.
Tribunal held that CIT(A)/NFAC was bound to decide each ground of appeal & failure to adjudicate the legal ground rendered the order defective. It observed that non-consideration of the issue of validity of reassessment amounted to non-compliance with the statutory requirement of a reasoned order u/s 250(6).
