JAYSHREEJIBEN SANJAYKUMAR DHAKAN,RAJKOT vs. ASSESSMENT UNIT, INCOME TAX DEPARTMENT, NATIONAL FACELESS ASSESSEMENT CENTER, DELHI

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ITA 402/RJT/2024Status: DisposedITAT Rajkot04 April 2025AY 2016-174 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal noted that four notices were issued by the Ld. CIT(A) but there was no compliance, leading to an ex-parte order. The primary reason for non-compliance was attributed to the consultant being busy with the treatment of his sister, who was suffering from cancer, with medical documents placed on record. Considering this, the Tribunal was of the view that an opportunity should be given to the assessee to present her case before the lower authority. The Tribunal also noted that the Assessing Officer had passed an order under section 144 of the Act. Therefore, the Tribunal set aside the order of the Ld. CIT(A) and remitted the matter back to the file of the Ld. AO for fresh adjudication on merits, after providing due opportunity to the assessee of being heard. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Jayshreeben Sanjaykumar Dhakan, is appealing an order dated April 15, 2024, passed by the National Faceless Appeal Centre (NFAC), which upheld an assessment order dated March 29, 2022, passed by the Assessment Unit under section 147 read with sections 144 and 144B of the Income Tax Act, 1961. The assessment year in question is 2016-17. The assessee had not filed a return of income for this year. The case was re-opened based on information received from DDIT (Inv.) indicating unaccounted investment of Rs. 26,55,000/-. The assessee jointly purchased a flat for Rs. 26,55,000/-, but the agreement showed Rs. 19,91,000/- (including service tax), with the balance Rs. 6,64,000/- paid as 'on money'. The Assessing Officer made an addition of Rs. 6,64,000/- under section 69 of the Act. The assessee's appeal to the CIT(A) was dismissed ex-parte.

What were the issues?

1. Whether the Ld. CIT(A) erred in confirming the Assessing Officer's action of making an addition of Rs. 6,64,000/- as unexplained cash credits, without appreciating the facts and providing opportunities for cross-examination, as per section 69 of the Income Tax Act, 1961? Assessee's Contention: The assessee argued that the Ld. CIT(A) erred in confirming the addition of Rs. 6,64,000/- as unexplained credits. The assessee contended that the Ld. CIT(A) did not appreciate the facts and failed to provide opportunities for cross-examination. The assessee also stated that due to the sister's breast cancer, compliance with the notices issued by the Ld. CIT(A) was not possible, and therefore, prayed for an opportunity to present the case before the lower authority. Revenue's Contention: The Ld. Sr. DR relied upon the order of the Ld. CIT(A) and did not object to the prayer of the Ld. AR for an opportunity to be heard.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 144B,Section 69

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RAJKOT BENCH,

Before: DR. ARJUN LAL SAINI & SHRI DINESH MOHAN SINHA

For Respondent: Shri Abhimanyu Singh Yadav, Ld. Sr. DR
Hearing: 27/03/2025Pronounced: 04/04/2025

आदेश / O R D E R PER DINESH MOHAN SINHA, JM:

1.

Captioned appeal filed by the assessee is directed against the order passed by the National Faceless Appeal Centre [(in short “NFAC/Ld. CIT(A)”] vide order dated 15.04.2024, which in turn assessment order passed by Assessment Unit, Income Tax Department / Assessing Officer under section 147 r.w.s. 144 and 144B of the Income Tax Act, 1961 (in short “the Act”), vide order dated 29.03.2022.

2.

Grounds of appeal raised by the assessee are as follows:

1) On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in confirming the AO’s action making addition of Rs. 6,64,000/- considering as on account of unexplained cash credits an arbitrary amount as unexplained credits without appreciating the facts and providing opportunities and evidence to criss examine. 2) On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in

3.

Brief facts of the case that the assessee has not filed her return of income for AY 2016-17. The assessee’s case was re-opened for assessment u/s. 147 of the I. T. Act, 1961. That the information was received from DDIT (Inv.), Unit-2, Ahmedabad vide email dated 07.07.2020. In the sworn statements they have confirmed that on money was accepted against the sale o flats. On verification of chart, it is found that the assessee smt. Jayshreejiben Sanjaykumar Shakan has made unaccounted investment of Rs. 26,55,000/- in the AY 2016-17.

2) The assessee Smt. Jayshreeben Thakkar has purchased a flat in the project of Cream city during the FY 2015-16 at the cost of Rs. 26,55,000/-. However, the value has been shown in the agreement of purchase of flat, the value has been shown as Rs. 19,91,000/- including Service tax of Rs. 1,14,960/-. The balance amount of Rs. 6,64,000/- has paid as ‘on money’ to the builder as per the details available on record. The property has been purchased jointly with the assessee’s husband Shri. Sanjaybhai A Dhakan as per the list/ excel sheet which was impounded from the builder during the survey proceedings. Further, this fact was clarified by Shri Ashutosh Gantara, authorized signatory of company, in his survey statements.

3) In response to the notices issued, the assessee has submitted details vide her reply dated 18.02.2022. On verification of the details, it is seen that the assessee and her husband Shri. Sanjaybhai A. Dhakan has jointly taken a housing loan of Rs. 18,00,000/- from Dewan Housing Finance Corporation Limited for purchasing the said flat. The assessee has also submitted copy of bank statement and copy of purchase agreement of the property.

4) The total income of the assessee is computed as under:

Income from other sources Addition made u/s. 69 of the I. T. Act, 1961 Rs. 6,64,000/- Total Income Rs. 6,64,000/-

4.

That the assessee filed an appeal against the order of the Ld. AO, vide order dated 29.03.2022. In the office of the Ld. CIT(A), Rajkot. The Ld. CIT(A) has dismissed the appeal with following observation:

“It is observed from records that the instant appeal was filed by the appellant on 30/04/2022. Almost two years have elapsed since then. It is not conceivable that the appellant could not gather relevant material or evidences during the last two years and after giving the final opportunity, the appellant is again seeking adjournment. it was clearly mentioned in the notice dated 29/03/2024 that in case of failure to reply. there is no cause of interference with the order passed by the AO under section 147r.w.s144 of the Act dated 29/03/2022 for the AY 2016-17 in the case of the appellant and the same is confirmed.”

5.

That the assessee filed an appeal against the impugned order dated 15.04.2024 before the Tribunal.

6.

During the course of hearing, the Ld. AR of the assessee submitted that sister of the assessee met with breast cancer; hence the assessee could not comply with the notices issued by the Ld. CIT(A). Therefore, the Ld. AR of the assessee prayed for an opportunity to be given to the assessee to present his case before the lower authority.

7.

On the other hand, the Ld. Sr. DR has relied upon the order of the Ld. CIT(A) and not objected to the prayer of the Ld. AR.

8.

We have heard both the parties and perused the documents available on record. We note that four notices have been issued by the Ld. CIT(A), but there was no compliance to the notice. The Ld. CIT(A) is disposed of the appeal by an ex-parte order. We note that the main reason for non compliance was that the consultant was busy in treatment of his sister who is suffering from Cancer (Medical documents placed on record). Thereafter, we are of the view that an opportunity should be given to the assessee to present his case before the Lower Authority. We note that the Ld. AO has also passed an order u/s. 144 of the Act. We set aside the order of Ld. CIT(A) and remit the matter back to the file of Ld. AO for fresh adjudication on merit after giving due opportunity to the assessee of being heard.

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

Order pronounced in the open court on 04 -04-2025.

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