CHIRAGBHAI JADURAI PATEL,AHMEDABAD vs. THE INCOME TAX OFFICER, WARD-1(2)(1), AHMEDABAD

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ITA 708/AHD/2024Status: DisposedITAT Ahmedabad22 November 2024AY 2016-17Bench: DR. BRR KUMAR, VICE PRESIDENT MS. SUCHITRA KAMBLE (Judicial Member)4 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, considering the assessee's agreement to pay Rs. 5,000/- to the Prime Minister's National Relief Fund, remanded the matter back to the AO for a fresh assessment. The assessee was directed to cooperate with the proceedings.

What were the facts?

The assessee, a restaurateur, filed his return of income. The assessment proceedings were initiated under section 147, and additions were made by the Assessing Officer (AO) and confirmed by the CIT(A). The assessee appealed the CIT(A)'s order.

What were the issues?

The primary issues revolved around the validity of reopening the assessment and the correctness of additions made by the AO for cash deposits and RTGS credit entries.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 144B,Section 151,Section 69A,Section 115BBE,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “ SMC ” BENCH, AHMEDABAD

Before: DR. BRR KUMARMS. SUCHITRA KAMBLE

For Appellant: Shri Mahesh Chhajed, AR
Hearing: 18/11/2024Pronounced: 22/11/2024

आयकर अपील सं / Year : 2016-17 Chiragbhai Jadurai Patel The ITO बनाम/ C/o. M.S. Chhajed & Co., CA, Ward-1(2)(1) v/s. “Kamal Shanti” Ahmedabad – 380 015 Nr.Sardar patel Statue, Ahmedabad – 380 014 (Gujarat) "थायी लेखा सं./PAN: AHFPP 9617 E (अपीलाथ"/ Appellant) ("" यथ"/ Respondent) Assessee by : Shri Mahesh Chhajed, AR Revenue by : Shri C. Dharani nath, Sr.DR सुनवाई की तारीख/Date of Hearing : 18/11/2024 घोषणा की तारीख /Date of Pronouncement: 22/11/2024 आदेश/O R D E R

PER DR. BRR KUMAR, VICE PRESIDENT

1.

This is an appeal filed by the assessee against the order of the Ld.Commissioner of Income Tax (Appeals) [CITA] , National Faceless Appeal Centre, Delhi in proceeding u/s.250 of the Income Tax Act, 1961 vide order dated 06/03/2024 passed for the Assessment Year (AY) 2016-17.

2.

The grounds of appeal

taken by the assessee are as under:-

1. The order passed by the Ld. CIT (A) is against law, equity & justice. Chiragbhai Jadurai Patel vs. ITO Asst. Year : 2016-17 2

2. The Ld. CIT (A) has erred in law and on facts in upholding validity of reopening of assessment though Reopening of assessment is on borrowed satisfaction and without independent application of mind.

3. The Ld. CIT (A) has erred in law and on facts in upholding validity of reopening of assessment though the Ld. AO has assumed jurisdiction on the basis of some non specific & vague information.

4. The Ld. CIT (A) has erred in law and on facts in upholding validity of reopening of assessment done by the Ld. AO for cash deposit in bank accounts.

5. The Ld. CIT (A) has erred in law and on facts in upholding validity of reopening of assessment though Ld. CIT has granted mechanical approval u/s 151 of the Act.

6. The CIT(A) has erred in law and on facts in upholding addition made by the Ld. A.O. of Rs. 10,24,100/- U/S 69A r.w.s 115BBE of the Act.

7.

The CIT (A) has erred in law and on facts in upholding the addition made by the Ld. A.O. of Rs. 6,15,642/- for credit entries through RTGS. 8. The appellant Craves liberty to add, amend, alter or modify all or any grounds of appeal before final appeal.

3. The brief facts of the case are that the assessee is Restaurateur having source4 of income from Business and Profession and income from other sources. The assessee has filed his return of income on 13/04/2017 declaring total income of Rs.2,58,800/-. The assessment proceedings were initiated on the assessee u/s.147 of the Income Tax Act, 1961 (“the Act”) and ultimately concluded in passing of the order u/s.147 r.w.s.144/144B of the Act, owing to non-filing of evidences before the Assessing Officer. The addition made by the AO has been confirmed by the Ld.CIT(A) by passing of an ex-parte order due to non-compliance of the notices issued to the assessee by the Ld.CIT(A). Chiragbhai Jadurai Patel vs. ITO Asst. Year : 2016-17

4.

We have heard both the parties and perused the material available on record. Before us, the Ld.Cousel for the assessee has fairly agreed to pay an amount of Rs.5,000/- towards the cost, which shall be deposited in the Prime Minister’s National Relief Fund and the copy of proof to the AO, who shall issue the notice to the assessee and pass an assessment order De novo. The amount to be deposited within a period of two weeks from the receipt of this order. Thus, the matter is remanded back to the file of the AO for proper verification and adjudication of the issues as per the Income Tax Statute. Needless to say, the assessee be given proper opportunity of hearing in the interest of natural justice. It is further directed that the assessee will take utmost care, who appear before the AO and fully co-operate with the assessment proceedings. Otherwise, the AO is at liberty to take appropriate action and adjudicate the matter as per law.

5.

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

Order pronounced in the Court on 22nd November, 2024 at Ahmedabad. (SUCHITRA KAMBLE) ( DR. BRR KUMAR ) JUDICIALMEMBER VICE PRESIDENT टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS Chiragbhai Jadurai Patel vs. ITO Asst. Year : 2016-17

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