NAMAN BHANUBHAI SHAH,AHMEDABAD vs. THE ITO, WARD-3(3)(1), AHMEDABAD

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ITA 1113/AHD/2023Status: DisposedITAT Ahmedabad03 January 2025AY 2017-18Bench: DR. BRR Kumar (Vice President), Shri T.R. Senthil Kumar (Judicial Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal set aside the ex-parte assessment order and remanded the issue back to the Assessing Officer. This was conditional upon the assessee paying a cost of Rs. 5,000/-. The Assessing Officer was directed to pass a fresh order on merits after giving the assessee an opportunity of hearing.

What were the facts?

The assessee filed a return for AY 2017-18, which was accepted. Later, following a search, the assessment was reopened under Section 148, alleging escapement of income due to bogus accommodation entries related to sale of shares. The assessee failed to respond to notices, leading to an ex-parte assessment order under Section 144.

What were the issues?

Whether the ex-parte assessment order passed without granting proper opportunity of hearing to the assessee should be set aside, and if so, on what conditions.

Which sections of the Income-tax Act were involved?

Section 144,Section 143(3),Section 148,Section 69

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “D” BENCH

Before: DR. BRR Kumar & Shri T.R. Senthil Kumar

Assessment Year 2017-18 Naman Bhanubhai Shah The ITO, D-604, Dhananjay Tower, Ward-3(3)(1), Nr. Sachin Tower, Vs Ahmedabad Satellite, Ahmedabad-380015 PAN: AMEPS3004Q (Respondent) (Appellant) Assessee Represented: Shri K. C. Thaker, A.R. Revenue Represented: Shri Waghe Prasad Rao, Sr.D.R. Date of hearing : 01-01-2025 Date of pronouncement : 03-01-2025 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:-

This appeal is filed by the Assessee as against the ex-parte appellate order dated 27.10.2023 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, (in short referred to as “CIT(A)”), arising out of the exparte assessment order passed under section 144 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2017-18.

A.Y. 2017-18 Page No 2 Naman Bhanubhai Shah vs. ITO

2.

Brief facts of the case is that the assessee is an individual and has filed Return of Income for the Asst. Year 2017-18 on 31-03-2018 declaring total income of Rs.3,50,000/-. Regular assessment u/s. 143(3) was made on 18-12-2019 accepting the Returned Income. Information received pursuant to the Search and Seizure action in the Kushal Group of cases on 05-02-2019, the assessee is involved in price rigging and providing bogus accommodation entries of LTCG and STCG by selling shares of GBFL for Rs.79,79,854/- which has resulted in escaped assessment of income. Hence the assessment was reopened by issuing a notice u/s. 148 dated 31.03.2021.

3.

In response, the assessee filed Return of Income on 13-07-2021 declaring total income of Rs.3,50,000/- . However the assessee has not responded to the other notices issued by the Assessing Officer, which has resulted in passing an exparte assessment order treating the total transaction from GBFL share of Rs.79,79,854/- as unexplained income u/s. 69 of the Act.

4.

Aggrieved against the exparte assessment order, assessee filed an appeal with a delay of 118 days. The same was also not condoned by the Ld. CIT(A) as ‘sufficient cause’ was not adduced by the assessee. Ld. Counsel for the assessee submitted that one more opportunity be given to the assessee to make out its case on merits before the Lower Authorities.

5.

Per contra, Ld. Sr. D.R. appearing for the Revenue submitted that this being an exparte order before the Lower Authorities, heavy A.Y. 2017-18 Page No 3 Naman Bhanubhai Shah vs. ITO cost be imposed on the assessee for setting aside the matter to the JAO.

6.

We have considered the submissions of rival parties and in the Interest of Principle of Natural Justice, we deem it fit to set aside the issue back to the file of Jurisdictional Assessing Officer on the condition of imposing a cost of Rs. 5,000/- payable by the assessee to the Income Tax Department within two weeks of receipt of this order. On proper compliance of the above cost, the Assessing Officer is directed to pass fresh order on merits by giving proper opportunity of hearing to the assessee.

7.

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

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