HINABEN BABULAL PIPALIYA,RAJKOT vs. ITO WARD 1(1)(1), RAJKOT, RAJKOT

ITA 292/RJT/2026Status: DisposedITAT Raipur25 September 2026AY 2020-215 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the assessee wished to submit additional documents and evidence before the Ld. CIT(A) to prove her claim. It was also observed that no opportunity of cross-examination was given to the assessee concerning documents found at third-party premises. The assessee's counsel submitted that the entire documents and evidence were not submitted during the assessment proceedings, and therefore, another opportunity to contest the issue should be provided. Furthermore, the assessee had not been provided with a copy of the seized documents. Consequently, the Tribunal was of the view that the matter should be restored back to the file of the Ld. CIT(A). The directions included providing the seized documents pertaining to the assessee, granting an opportunity for cross-examination, and calling for an appropriate remand report from the Assessing Officer concerning the additional evidences. Accordingly, the order of the Ld. CIT(A) was set aside, and the issue was remitted back to the file of the Ld. CIT(A) for fresh adjudication. The appeals were allowed for statistical purposes.

What were the facts?

The assessee, Hinaben Babulal Pipaliya, filed two appeals (ITA Nos. 292 & 294/Rjt/2026) for Assessment Years 2019-20 and 2020-21. These appeals challenge orders passed by the National Faceless Appeal Centre (NFAC)/Commissioner of Income-tax (Appeals) under section 250 of the Income-tax Act, 1961. These orders arose from assessment orders passed by the Assessing Officer under section 147 of the Act. The appeals were heard together as they involved common issues. The assessee's counsel submitted that during a search and survey operation on real estate builders and associates in Rajkot, including the RK Group, on 24.08.2021, incriminating documents were seized. The assessee claimed that she needed to submit additional documents and evidence before the Ld. CIT(A) and that an opportunity for cross-examination was not provided. The seized material pertaining to the assessee was also not provided.

What were the issues?

1. Whether the assessee was denied a fair opportunity to present her case before the Ld. CIT(A) by not being provided with seized material and an opportunity for cross-examination, thereby violating principles of natural justice, in relation to the assessment proceedings initiated under Section 147 of the Income-tax Act, 1961? Assessee's Contentions: - The assessee sought to submit additional documents and evidence before the Ld. CIT(A) to substantiate her claims. - An opportunity for cross-examination was not provided by the Ld. CIT(A) regarding documents found at third-party premises. - The Assessing Officer initiated assessment proceedings against a third party without establishing that seized documents pertained to the assessee or contained relevant information about her. - The seized material pertaining to the assessee was not provided. - The matters should be remitted back to the Ld. CIT(A) with a direction to provide the seized material to the assessee for her comments. Revenue's Contentions: - The Ld. DR for the revenue did not raise any objection if the matter was restored back to the file of the Ld. CIT(A) with directions for the assessee to submit additional evidence and for the Ld. CIT(A) to provide an opportunity for cross-examination and seized material.

Which sections of the Income-tax Act were involved?

Section 250,Section 147,Section 132,Section 133A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC”

Before: Dr. Arjun Lal Saini

For Appellant: Shri Fenil H. Mehta, Ld. AR
For Respondent: Shri Shishir Kumar, Ld. Sr. DR
Hearing: 30/07/2026Pronounced: 25/09/2026

Per, Dr. Arjun Lal Saini, AM:

Captioned two appeals filed by the assessee, pertaining to assessment years (AY) 2019-20 & 2020-21, are directed against the separate orders under section 250 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the National Faceless Appeal Centre (NAC) Delhi/Commissioner of Income-tax (Appeals) [in short ‘NFAC/Ld.CIT(A)’], dated 22.12.2025, which in turn arise out of separate assessment orders passed by the Assessing Officer u/s 147 of the Act.

ITA No. 292 & 294/Rjt/2026 H

The order continues below.

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