ARCHIT GAUTAMBHAI PATEL,VADODARA vs. ITO GUJ-W-(301)(94), VADODARA

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ITA 1537/AHD/2024Status: DisposedITAT Ahmedabad21 February 2025AY 2021-22Bench: Shri T.R. Senthil Kumar (Judicial Member), Shri Makarand Vasant Mahadeokar (Accountant Member)1 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal, in the interest of natural justice, set aside the previous orders. The Assessing Officer was directed to consider additional documents filed by the assessee and pass a fresh assessment order after providing an opportunity of hearing.

What were the facts?

The assessee, engaged in the pharmaceutical business, filed its return of income. The assessment was selected for scrutiny due to a large increase in turnover without a corresponding increase in net profit. The Assessing Officer made additions for disallowed expenses and interest.

What were the issues?

Whether to admit additional documents filed by the assessee and whether the assessment order should be set aside for fresh consideration.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “B” BENCH

Before: Shri T.R. Senthil Kumar & Shri Makarand Vasant Mahadeokar

Assessment Year 2021-22 Archit Gautabhai Patel The ITO, 10A Vrindavan Park Ward-1(3)(1), Nr. Swati Society, Vs Vadodara OPP. Jivan Chetna School, EME Sama Road, Vadodara-390024 Gujarat PAN: AOMPP9476P (Respondent) (Appellant) Assessee Represented: Written Submission Revenue Represented: Shri Santosh Kumar, Sr.D.R. Date of hearing : 20-02-2025 Date of pronouncement : 21-02-2025 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:-

This appeal is filed by the Assessee as against the ex-parte appellate order dated 23.08.2023 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, (in short referred to as “CIT(A)”), arising out of the assessment order passed under section 143(3) r.w.s. 144B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2021-22.

A.Y. 2021-22 Page No 2 Archit Gautambhai Patel. vs. ITO

2.

Brief facts of the case is that the assessee is an individual engaged in Pharmaceutical business. For the Asst. Year 2011-12, assessee filed its Return of Income on 14-02-2022 declaring total income of Rs.39,10,940/-. The return was selected for scrutiny as the Pharma Industry has shown large increase in turnover but there is no corresponding increase in net profit. During assessment proceedings, the Assessing Officer called for various expenses namely CME Business Development Expenses, Consumables, Medical Purchase, Staff Salary, etc. The assessee furnished partial information. Based on the same, the Assessing Officer made an addition of Rs. 22,11,306/- disallowing various expenses and interest expenses of Rs. 2,19,336/-.

3.

Aggrieved against the same, assessee filed an appeal before Ld. CIT(A) but the appeal was dismissed for non-prosecution.

4.

At the outset, the assessee vide its letter dated 17-01-2025 submitted that the assessee could not file the relevant details before the Lower Authorities, since his father was hospitalized for major surgery at Ahmedabad. Now at this juncture, the assessee filed, bank statements, supplier invoices, bank loan statements and other records as additional documents and requested to admit the same. The assessee filed the additional documents as Annexures A to I running to 139 pages.

5.

Ld. Sr. D.R. appearing for the Revenue has no serious objection in setting aside the matter back to the file of Jurisdictional A.Y. 2021-22 Page No 3 Archit Gautambhai Patel. vs. ITO Assessing Officer to verify the additional documents filed by the assessee.

6.

Therefore in the interest of Principle of Natural Justice, we deem it fit to set aside the orders passed by the Lower Authorities with a direction to the Jurisdictional Assessing Officer to take on record, the additional evidences filed by the assessee and pass fresh assessment order in accordance with law by providing proper opportunity of hearing to the assessee. Needless to say, the assessee should make use of this final opportunity of hearing and cooperate with the Jurisdictional Assessing Officer for passing fresh assessment order.

7.

In the result, the appeal filed by the Assessee is allowed for statistical purpose.

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