VIKESH MANDVIWALA,SURAT vs. INCOME TAX OFFICER, WARD 1(3)(4), SURAT

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ITA 775/SRT/2023Status: DisposedITAT Surat13 July 2026AY 2013-145 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the matters to the file of the AO for fresh adjudication, allowing the assessee to present additional evidence and submissions. The AO was directed to afford the assessee an adequate opportunity of being heard and to pass fresh orders.

What were the facts?

The assessee's appeals for multiple assessment years were related to additions and disallowances made by the AO, partly due to the assessee's inability to provide complete documentation during the original assessment. The assessee later gathered the necessary details and evidence.

What were the issues?

Whether the appeals should be restored to the AO for fresh adjudication to allow the assessee to present additional evidence and make effective submissions.

Which sections of the Income-tax Act were involved?

Section 147,Section 143(3),Section 151

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

Before: MS. SUCHITRA KAMBLE & SHRI B.M. BIYANI

For Appellant: Shri. Rasesh Shah, C.A
For Respondent: Shri Ashish Kumar, Sr. D.R. &, Shri P R Kuttan, ITO with Assessment

आदेश / O R D E R Per Bench: The captioned four (4) appeals have been filed by same assessee; the details of these appeals are as under:

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Vikesh Mandviwala ITA No. 773 to 776/SRT/2023, A.Y. 2011-12 to 2013-14 & 2017-18 ITA No. Assessment Year Impugned order of first- Assessment order appeal 1 773/Srt/2023 2011-12 Order dated 11-09- Order dated 18-12- 2023 passed by Ld. 2018 passed by Ld. CIT(A), NFAC, Delhi ITO-Ward-1(3)(4), Surat u/s 143(3) r.w.s. 147 2 774/Srt/2023 2012-13 -do- Order dated 21-11- 2019 passed by Ld. ITO-Ward-1(3)(4), Surat u/s 144 r.w.s. 147 3 775/Srt/2023 2013-14 -do- Order dated 18-12- 2018 passed by Ld. ITO-Ward-1(3)(4), Surat u/s 143(3) r.w.s. 147 4 776/Srt/2023 2017-18 -do- Order dated 30-11- 2019 passed by Ld. ITO-Ward-1(3)(4), Surat u/s 143(3)

2.

We have heard the learned Representatives of both sides and carefully considered their respective submissions.

3.

The Ld. AR for assessee raised a claim that no approval was taken by Ld. AO as mandated u/s 151 of the Income-tax Act, 1961 from higher authorities before taking action u/s 147 against assessee. Accordingly, in terms of direction given by bench, Shri P.R. Kuttan, Income-tax Officer appeared in person and produced assessment-record having the copy of approval u/s 151 given by higher authorities. The Ld. AR for assessee, having perused the same in open court, did not carry assessee’s claim further. Accordingly, this claim of assessee is rejected.

9.

Ld. AR for assessee thereafter made following submissions:

(i) The assessee was carrying on business through a proprietary concern, M/s Padmawati International. The cases of the assessee for AY 2011-

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Vikesh Mandviwala ITA No. 773 to 776/SRT/2023, A.Y. 2011-12 to 2013-14 & 2017-18 12 to 2013-14 have been subjected to assessment u/s 147 and the case of AY 2017-18 has been subjected to assessment u/s 143(3). During the course of assessment proceedings, the assessee could make only partial compliances/submissions as a result of which the Ld. AO completed these assessments substantially in the nature of ex- parte assessments and made various additions/disallowances, inter alia, on account of unexplained deposits in bank accounts, disallowance of various business expenditure including interest on bank overdraft, re-computation of capital gains, taxation of income from transactions of commodity exchange, etc. Ld. AR submitted that the assessee has subsequently, with considerable efforts, collected the requisite details and documentary evidences from various sources and now he is in a position to make an effective representation before Ld. AO. Since the material collected by assessee and proposed to be filed constitutes additional evidences requiring detailed verification at the level of Ld. AO, Ld. AR prayed that the present matters may be restored to the file of Ld. AO for a fresh adjudication after considering assessee’s evidences and submissions. Ld. AR asserted and assured that the assessee shall extend full co-operation and make an effective representation during the remand proceedings.

(ii) Ld. AR further asserted that, in the event these matters are restored to the file of the Ld. AO, the assessee shall not claim or insist upon the partial relief already granted by Ld. CIT(A). He agreed that the Ld. AO may undertake a de novo assessment in totality.

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Vikesh Mandviwala ITA No. 773 to 776/SRT/2023, A.Y. 2011-12 to 2013-14 & 2017-18 4. Replying to same, the Ld. DR for the Revenue though dutifully supported the orders of lower authorities yet did not show any objection against remanding these matters to Ld. AO for a fresh adjudication. He, however, submitted that while restoring, suitable directions may be issued to ensure strict compliance by the assessee during fresh assessment proceedings.

5.

We have given our thoughtful consideration to the rival submissions and carefully perused the orders of lower authorities. Having regard to the principles of natural justice and considering that no prejudice would be caused to the Revenue if the matters are restored for fresh examination, we deem it appropriate to restore these matters to the file of the Ld. AO for adjudication afresh, at the risk and responsibility of the assessee and in terms of the submissions and undertaking given by the Ld. AR as recorded hereinabove. The Ld. AO shall afford adequate opportunity of being heard to the assessee; consider the evidences and submissions that may be furnished by assessee; and thereafter pass fresh orders in accordance with law uninfluenced by the observations made in the earlier assessment orders. The assessee is also directed to remain vigilant and extend full co-operation in the fresh assessment proceedings by complying with the notices and hearings as may be fixed by Ld. AO without seeking unnecessary adjournments. In the event of failure on the part of the assessee to do so, the Ld. AO shall be at liberty to proceed in accordance with law. Ordered accordingly.

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Vikesh Mandviwala ITA No. 773 to 776/SRT/2023, A.Y. 2011-12 to 2013-14 & 2017-18 6. Resultantly, these appeals are allowed for statistical purposes.

Order pronounced in open court on 13/07/2026

Sd/- Sd/- (SUCHITRA KAMBLE) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Surat दिन ांक /Dated : 13-07-2026 *a.k. Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPYAssistant Registrar Income Tax Appellate Tribunal Surat Bench, Surat

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