MAHESHBHAI SOMABHAI BHOI,ANAND vs. THE ITO, WARD-1(3)(1), PETLAD

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ITA 2040/AHD/2024Status: DisposedITAT Ahmedabad28 April 2025AY 2018-193 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the impugned order of the CIT(A) and restored the matter back to the file of the CIT(A) for a fresh decision. The Tribunal noted the assessee's submissions that the loan was not received in the relevant year and that the assessee could explain the source, identity, creditworthiness of creditors, and genuineness of the transaction. The Tribunal also acknowledged the assessee's grievance regarding the ex-parte order of the CIT(A) and the failure to consider the submitted details. The assessee was directed to file submissions along with evidence before the CIT(A), which would be duly considered for a fresh order. The issue of whether the loan was income from unexplained sources was not decided on merits by the Tribunal, but the matter was remanded for fresh adjudication.

What were the facts?

The assessee, Maheshbhai Somabhai Bhoi, filed an appeal against the order of the Commissioner of Income Tax (Appeal)/National Faceless Appeal Centre (NFAC), Delhi, dated 03.10.2024. This order arose from an assessment made under Section 147 read with Section 144 of the Income Tax Act, 1961, for the Assessment Year 2018-19. The Assessing Officer had made an addition of Rs. 6,50,000/- by treating a loan received by the assessee as income from unexplained sources. The assessee was aggrieved by the CIT(A) upholding this addition.

What were the issues?

1. Whether the loan received by the assessee was during the assessment year 2018-19, and if so, whether the assessee could adequately explain the source, identity, creditworthiness of creditors, and genuineness of the transaction? (Mixed question of law and fact, turning on Section 68 of the Income Tax Act, 1961). Assessee's contentions: The assessee argued that the loan was not received in the year under consideration. Furthermore, the assessee contended that they could explain the source of the loan, along with the identity and creditworthiness of the creditors and the genuineness of the transaction. The assessee also pointed out that the CIT(A)'s order was ex-parte, and despite filing necessary details before the CIT(A), they were not considered. Revenue's contentions: No specific contentions for the revenue were recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “SMC” BENCH

Before: Shri Sanjay Garg & Ms. Annapurna Gupta

For Appellant: Shri S.N. Divetia, A.R. &, Shri Samir Vora, A.R
For Respondent: Shri Ashok Kumar Suthar, Sr. D.R

आदेश/ORDER Per Sanjay Garg, Judicial Member:

1.

The present appeal has been filed by the Assessee against the order passed by the Learned Commissioner of Income Tax (Appeal)/National Faceless Appeal Centre (NFAC), Delhi [hereafter referred to as “CIT(A)”] dated 03.10.2024 arising from the order passed u/s. 147r.w.s.144 of the Income Tax Act, 1961 (here-in-after referred to as “the Act”) relevant to the Assessment Year 2018-19.

2.

The assessee in this appeal is aggrieved by the action of the CIT(A) in upholding the addition of Rs. 6,50,000/- made by the Assessing Officer treating the loan received by the assessee as income of the assessee from unexplained sources. The ld. counsel for the assessee has submitted that firstly, the loan was not received during the year under consideration and secondly, the assessee can very well explain the source of the loan along with identity and creditworthiness of the creditors and genuineness of the transaction. The ld. counsel has further brought our attention to the ex-parte order of the CIT(A). The ld. counsel has submitted that though, the necessary details relating to the aforesaid credits were filed before the CIT(A), however, the Ld. CIT(A) failed to consider the same. Considering the above submissions of the assessee, the impugned order of the CIT(A) is set aside and the matter is restored back to the file of CIT(A) for decision afresh on this issue. The assessee will file the submissions along with evidences which will be duly considered by the CIT(A) and thereafter the Ld. CIT(A) will pass order afresh on the appeal of the assessee.

3.

In the result, the appeal of the assessee is treated as allowed for statistical purposes.

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