SHRI DILIP BHAGWANDAS JETHWANI,AHMEDABAD vs. THE INCOME TAX OFFICER, WARD-7(2)(1), AHMEDABAD

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ITA 2193/AHD/2017Status: DisposedITAT Ahmedabad15 October 2018AY 2009-102 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the matter needed to be examined on merits, considering the assessee's bank accounts and other financial records. It directed the CIT(A) to reconsider the issue afresh, taking into account the submitted material and the assessee's available funds.

What were the facts?

The assessee challenged an order passed by the CIT(A) concerning assessment under Section 143(3) r.w.s. 147. The assessee argued that the authorities below relied on an inadmissible statement recorded during survey proceedings instead of adjudicating afresh based on submitted documents.

What were the issues?

Whether the authorities below properly adjudicated the matter on merits by considering all relevant documents, or if they improperly relied on an inadmissible statement recorded during survey proceedings.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

Before: Shri Pramod Kumar]

1.

By way of this appeal, the assessee appellant has challenged correctness of order dated 2nd August 2017 passed by the CIT(A) in the matter of assessment under Section 143(3) r.w.s. 147 and 254 of the Income-tax Act, 1961, for the assessment year 2009-10.

2.

When this appeal was called out for hearing, learned counsel pointed out that this is second round of hearing before the Tribunal, and rather than giving effect to the directions of the Tribunal to adjudicate afresh “in the light of documents filed by the assessee”, the authorities below have emphasized upon the statement of the assessee as recorded during survey proceedings, which is inadmissible anyway. I am thus urged to once again remit the matter to the file of the Assessing Officer for fresh adjudication on merits. Learned Departmental Representative, on the other hand, opposes this prayer as aimed to waste time and delay the adjudication process reaching finality.

3.

I have heard the rival contentions, perused the material on record and duly considered facts of the case in the light of the applicable legal position.

SMC-ITA No. 2193/Ahd/2017 Dilip Kr. Bhagwandas Jethwani Vs. ITO AY : 2009-10 Page 2 of 2

4.

I find that the matter indeed needs to be examined on merits and the documents, such as copies of bank accounts – placed before us at pages 37 to 56 and the accounts of the assessee, need to be taken into account. It is true that the assessee has made investment in the relevant previous year but one has to consider, de-hors the statement of the assessee to what extent it can be treated as explained out of funds available to him. In view of these discussions, and bearing in mind entirety of the case, I deem it fit and proper to remit the matter to the file of the CIT(A) for considering the matter afresh in the light of above observations and such material as the assessee may produce, in accordance with the law. Ordered, accordingly.

5.

In the result, appeal is allowed for statistical purposes. Order pronounced in the open Court on this 15th day of October, 2018.

Sd/-

Pramod Kumar (Accountant Member) Ahmedabad, the 15th day of October, 2018 **bt Copies to: (1) The appellant (2) The respondent (3) Commissioner (4) CIT(A) (5) Departmental Representative (6) Guard File By order

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