Chandrakant Gajanan Paradhi Vs ITO (ITAT Nagpur)
The Income Tax Appellate Tribunal (ITAT), Nagpur Bench, has allowed an appeal filed by an Assessee for the Assessment Year (AY) 2017-18 and has remanded the case back to the National Faceless Appeal Centre (NFAC), Delhi, for a fresh decision. The Tribunal’s decision was based on a procedural irregularity where the Commissioner of Income Tax (Appeals)/NFAC, Delhi, incorrectly upheld a penalty levy in an appeal that challenged the reassessment order, not the penalty order itself.
Case Background and Lower Authorities’ Findings
The appeal before the ITAT stemmed from an order dated December 13, 2024, passed by the NFAC under Section 250 of the Income Tax Act, 1961. The dispute originated from a reassessment order dated March 30, 2022, passed by the Assessing Officer (AO) under Section 147 read with Section 144B of the Act.
The AO had made two significant additions to the Assessee’s income:
1. Rs. 10.00 lakhs on account of long-term capital gain.
2. Rs. 17.77 lakhs on account of the difference between sale consideration and stamp duty valuation under Section 50C of the Act.
The Assessee challenged these additions before the NFAC. However, the NFAC order noted that the Assessee had failed to comply with various opportunities provided. Consequently, the NFAC dismissed the appeal and affirmed the AO’s action.
