Nandkumar Baban Saste Vs ITO (ITAT Pune)
IDS Declaration Alone Cannot Justify Addition—ITAT Sends Case Back for Proper Hearing – CIT(A)’s Non-Speaking Order Quashed; JDA & IDS Issues to Be Re-Examined
Assessee, an individual farmer, did not file ROI for AY 2017-18. AO reopened assessment u/s 147 on the basis that assessee had made a declaration of ₹88,22,870 under IDS-2016 for AY 2014-15 but had not paid IDS taxes. In response to notice u/s 148, assessee filed a return declaring income of only ₹138.
During assessment, assessee explained that the IDS declaration related to a Joint Development Agreement (JDA) dated 29.01.2014 for ancestral agricultural land at Gat No. 269, Handewadi, where the family (23 co-owners) was to receive consideration partly in kind. He contended that the IDS disclosure was made due to ignorance & misguidance, & that no taxable income arose from the JDA.
AO, however, treated the IDS-declared amount of ₹88,22,870 as unexplained money u/s 69A, & framed assessment u/s 147 r.w.s. 144, assessing total income at ₹88,23,010.
Before CIT(A), assessee reiterated that the IDS declaration was unrelated to AY 2017-18 & did not result in taxable income. CIT(A), however, passed a cryptic, non-speaking order (page 5–6), merely observing that IDS declaration contained no particulars about any JDA & therefore upheld AO’s action without examining merits, without analysing the JDA, & without giving proper reasons, contrary to s.250(6).
