Deepak Sarda Vs ITO (ITAT Pune)
“Adventure or Agriculture?” – ITAT Pune Sends Land Gain & Loan Additions Back for Fresh Verification- Unexplained Loans & Land Deals: Tribunal Gives Assessee Second Chance Before AO
ITAT Pune remitted the entire matter back to AO after finding that the nature of land transactions, genuineness of loans & source of cash deposits were not properly verified. The assessee claimed the gains arose from rural agricultural lands, not business ventures, & that alleged unexplained credits were bank-routed loans.
The Tribunal noted that vital details were furnished only at appellate stage & required factual re-examination. Consequently, quantum additions & penalties u/s 271(1)(c) & 271B were set aside for fresh adjudication.
Held: Issues of business vs. agricultural income, unexplained credits & cash deposits remanded to AO for re-verification.
FULL TEXT OF THE ORDER OF ITAT PUNE
The above batch of three appeals filed by the assessee are directed against the separate orders dated 09.04.2025 of the Ld. CIT(A) / NFAC, Delhi relating to assessment year 2014-15. In ITA No.1578/PUN/2025 the assessee has challenged the order of the Ld. CIT(A) / NFAC confirming the various additions made by the Assessing Officer. In ITA No.1579/PUN/2025 the assessee has challenged the order of the Ld. CIT(A) / NFAC partly sustaining the penalty levied by the Assessing Officer u/s 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). In ITA No.1580/PUN/2025 the assessee has challenged the order of the Ld. CIT(A) / NFAC confirming the levy of penalty u/s 271B of the Act amounting to Rs.1,50,000/- for not getting the accounts audited u/s 44AB of the I T Act, 1961. For the sake of convenience, all these appeals were heard together and are being disposed of by this common order.
