AO Adds Stamp Duty difference as Unexplained Expenditure: ITAT Remands Matter due to Income Tax Notice issued During COVID-19 [Read Order]
The tribunal observed that the Income Tax notices were issued during the covid 19 pandemic
![AO Adds Stamp Duty difference as Unexplained Expenditure: ITAT Remands Matter due to Income Tax Notice issued During COVID-19 [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/03/expenditure.jpg "AO Adds Stamp Duty difference as Unexplained Expenditure: ITAT Remands Matter due to Income Tax Notice issued During COVID-19 [Read Order]")
The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has remanded back to the Commissioner of Income Tax (Appeals) [CIT(A)], citing Income Tax notice issued during the COVID-19 pandemic. Babasaheb Pandurang Bandgar, (assessee) a retired Vice Chancellor of Solapur University, had filed his return of income for the Assessment Year (AY) 2016-17, declaring a total income of...
The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has remanded back to the Commissioner of Income Tax (Appeals) [CIT(A)], citing Income Tax notice issued during the COVID-19 pandemic.
Babasaheb Pandurang Bandgar, (assessee) a retired Vice Chancellor of Solapur University, had filed his return of income for the Assessment Year (AY) 2016-17, declaring a total income of Rs. 7,41,380.
The Assessing Officer (AO) selected the case for scrutiny under the Centralized Automated Scrutiny Selection (CASS) on the grounds of large cash deposits and property purchases.
Read More: Delhi HC quashes Order Levying TDS of 2% on Salesforce’s ₹633 Cr Revenue [Read Order]
The Assessing Officer (AO) observed that the assessee and his wife had purchased a property for Rs. 10 lakh, whereas the stamp duty valuation of the property stood at Rs. 3,22,68,600.
The AO added Rs. 3,12,68,600 as unexplained income under Section 56(2)(vii)(b) of the Income Tax Act. The AO also made an addition of Rs. 19,66,200 under Section 69C as unexplained expenditure and Rs. 48,149 on account of suppressed interest income.
How to Compute Income from Salary with Tax Planning, Click Here
Aggrieved by the order of the AO, the assessee filed an appeal before the Commissioner of Income Tax (appeals)[CIT(A)]. However, the appeal was dismissed due to non-prosecution. Aggrieved by the order, the assessee filed an appeal before ITAT.
The counsel for the assessee submitted that the assessee’s case could not be represented before the CIT(A) for the reasons beyond the control of the assessee. The counsel highlighted that the notices were issued during the covid-19 pandemic. Therefore, the counsel requested to remand the matter back to CIT(A).
The two-member bench, comprising Dr. Manish Borad (Accountant Member) and Ms. Astha Chandra (Judicial Member), observed that the CIT(A) dismissed the appeal without considering the merits of the case. The tribunal observed that the notices were issued during the pandemic.
Therefore, the tribunal directed the CIT(A) to reconsider the appeal on merits and may call for a remand report from the AO before making a final decision. The tribunal also instructed the assessee to remain vigilant in the proceedings and avoid unnecessary adjournments.
Thereby, the appeal of the assessee allowed for statistical purposes.
To Read the full text of the Order CLICK HERE
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
