Santosh Shankar Gujar Vs ITO (ITAT Pune)
CIT(A) Order Non-Speaking—Key Issues on 54/54F, Net Consideration & Technical Glitch Not Examined; Entire Matter Remanded
The Assessee, an individual who did not file the original return u/s 139, received ₹2,37,00,000 on sale of immovable property and rent of ₹2,18,500 (with TDS). Based on NMS/AIMS information, AO issued notice u/s 148 on 31.03.2021.
Because of technical glitches, the Assessee could not file the return on the portal. He responded manually, filed sale deed, rental details, computation etc. AO issued notices u/s 142(1) on 08.07.2021, 29.11.2021 & 07.03.2022. A detailed response was filed on 24.03.2022.
However, AO issued the show cause notice only on 29.03.2022 at 23:00, allowing less than 24 hours for reply. The Assessee finally managed to file the belated online return on 30.03.2022, but the AO treated it as invalid and passed a best-judgment reassessment u/s 147 r.w.s. 144/144B on 31.03.2022, determining income at ₹2,03,87,948.
Before CIT(A)/NFAC, the Assessee raised multiple specific grounds, including:
- non-issuance of 143(2);
- absence of reasonable opportunity;
- technical glitch preventing timely filing;
- validity of transfer since ₹72,38,000 out of sale consideration remained unpaid;
- claim that only net consideration ₹1,64,62,000 should be considered;
- exemption claim u/s 54F to the extent of ₹93,00,000;
- deduction of ₹38,00,000 compensation paid under court order.
Tribunal observed (p.6–7) that CIT(A) did not examine any of these issues, nor addressed individual grounds. The order lacked reasons, lacked discussion of facts, and therefore suffered from non-application of mind and absence of a speaking order, violating section 250.
Considering these deficiencies, Tribunal held that the matter required a full de novo adjudication by CIT(A).
Accordingly, the entire order of CIT(A) was set aside, and the appeals were restored for fresh disposal with directions to:
