PRAVIN DAMJIBHAI JIVANI,RAJKOT vs. THE ITO WD 2(1)(1), RKT, RAJKOT

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ITA 554/RJT/2026Status: DisposedITAT Rajkot06 July 2026AY 2018-194 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal, while noting the assessee's failure to substantiate claims and cooperate, granted one final opportunity based on principles of natural justice, subject to a cost of ₹500. The appeal was allowed for statistical purposes.

What were the facts?

The assessee failed to file a return of income for AY 2018-19 and did not provide sufficient supporting documents for significant financial transactions during reassessment proceedings. The Assessing Officer made an addition of Rs. 2,24,79,578/-, which was sustained by the CIT(A).

What were the issues?

Whether the assessee should be granted another opportunity to present their case before the Assessing Officer, despite previous non-compliance, and the implications of substantial financial transactions without proper substantiation.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 142(1),Section 144,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Rajkot Bench, Rajkot

Before: Dr. Arjun Lal Saini & Shri Sonjoy Sarma

For Appellant: Ms. Devina Patel, Ld. AR
For Respondent: Shri Gopi Nath Chaubey, Ld. Sr. DR
Hearing: 02/07/2026Pronounced: 06/07/2026

आयकर अपीलीय अिधकरण, राजकोट �यायपीठ, राजकोट। In The Income Tax Appellate Tribunal, Rajkot Bench, Rajkot Before Dr. Arjun Lal Saini, Accountant Member And Shri Sonjoy Sarma, Judicial Member आयकर अपील सं./ITA No. 554/RJT/2026 [ �नधा�रण वष�/Assessment Year: 2019-20 ] Pravin Damjibhai Jivani The ITO Wd 2(1)(1), Prop. Santosh, H/29 Marketing Yard, It Office, New Aaykar Bhawan, Vs. Rajkot-360003, Vaitaka, Rajkot-360001 Gujarat Gujarat �थायीलेखासं./जीआइआरसं./PAN/GIR No.: AIWPR3086P (अपीलाथ�/Appellant) (��यथ�/Respondent) Appellant by : Ms. Devina Patel, Ld. AR Respondent by : Shri Gopi Nath Chaubey, Ld. Sr. DR Date of Hearing : 02/07/2026 Date of Pronouncement : 06/07/2026

:: ORDER :: Per, Shri Sonjoy Sarma, JM: Captioned appeal filed by the assessee, pertaining to assessment year (AY) 2019-20, is directed against the order under section 250 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the National Faceless Appeal Centre Delhi [in short ‘NFAC’], dated 16.02.2026, which in turn arises out of an assessment order passed by the Assessing Officer u/s 147 of the Act, dated 14.03.2023.

2.

Brief facts of the case that the assessee is an individual who did not file a return of income for Assessment Year 2018–19. Information was received by the department regarding significant financial transactions undertaken by the assessee during the relevant previous year, including purchase of equity shares Rs.10,22,725/-

ITA No. 554/RJT/2026 Pravin Damibhai Tivani cash deposits in Citizen Co-operative Bank Ltd. amount of Rs.1,65,00,600/-, Purchase of equity shares through recognized stock exchange Rs. 11,97,755/-, sale of equity shares through stock exchange Rs. 4,334/-, total purchases reported under GST of Rs.37,04,275/-, remuneration paid to partners of Rs.49,889/- respectively. The total income alleged to have escaped assessment was computed at Rs.2,24,79,578/-. Accordingly, notice under Section 148 of the Income Tax Act was issued to the assessee. During reassessment proceedings, notices under Section 142(1) and subsequently under Section 144 of the Act were also issued directing the assessee to submit a trading account, profit and loss account, bank statements of Citizen Co-operative Bank Ltd., stock transaction statements, and certain other documents. However, according to the Assessing Officer, the assessee failed to submit sufficient supporting evidence and documentary records to substantiate the transactions to the satisfaction of the department. Consequently, the Assessing Officer made an addition of Rs.2,24,79,578/- to the income of the assessee.

3.

The assessee preferred an appeal before the Ld.CIT(A). Where, the Ld. CIT(A) granted several opportunities and fixed hearings on multiple dates. However, no effective reply was submitted by the assessee. Accordingly, the appeal of the assessee was dismissed and the addition made by the Assessing Officer was sustained.

4.

Aggrieved by the order of the Ld. CIT(A), the assessee filed an appeal before the this tribunal, contending that the assessee could not properly participate in the proceedings before the lower authorities and requesting that another opportunity may be granted by remanding the issue back to the file of AO.

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ITA No. 554/RJT/2026 Pravin Damibhai Tivani 05. On, the other hand, Ld. DR strongly opposed the request and argued that the conduct of the assessee demonstrated a lack of interest in participating in proceedings and had resulted in unnecessary consumption of valuable judicial time. Therefore, it was requested that the appeal be dismissed with heavy costs. We, after hearing the rival submissions and examining the material available on record, we observed that the assessee had undertaken considerable financial transactions but had failed to file the return of income, indicating default in filing returns and payment of due taxes. Even during proceedings initiated under Section 148, the assessee did not adequately respond. We, also noted that the conduct of the assessee reflected failure to substantiate the claims properly. However, considering the principles of natural justice, the we granted one final opportunity to the assessee subject to imposition of cost of ₹500, which shall be deposit towards the Prime Minister National Relief Fund and submit proof of such payment before the Assessing Officer. In the event of failure to deposit the amount, the Assessing Officer would be at liberty to take appropriate action in accordance with law.

6.

The assessee was further directed to cooperate fully with the Assessing Officer and furnish all supporting documents.

7.

Accordingly, the appeal of the assessee was allowed for statistical purposes.

Order pronounced in the open court on this 6th day of July, 2026.

Sd/- Sd/- [ Dr. Arjun Lal Saini ] [ Shri Sonjoy Sarma ] लेखा सद�य/Accountant Member �याियक सद�य/Judicial Member राजकोट/Rajkot िदनांक/ Date: 06/07/2026 Copy of the order forwarded to : 1. The assessee

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ITA No. 554/RJT/2026 Pravin Damibhai Tivani 2. The Respondent 3. CIT 4. The CIT(A) 5. DR, ITAT, Rajkot 6. Guard File By order //True Copy// Sr. Private Secretary ITAT, Rajkot

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