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Income Tax Appellate Tribunal, AHMEDABAD “SMC” BENCH, AHMEDABAD
Before: Ms. SUCHITRA KAMBLE & SHRI NARENDRA PRASAD SINHA
PER SUCHITRA KAMBLE, JUDICIAL MEMBER:
This appeal is filed by the assessee against order dated 19.03.2024 passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the Assessment Year 2014-15.
The assessee has raised the following grounds of appeal :-
“1. On the facts and in the circumstances of the case as well in law, the Ld. National Faceless Appeal Centre, Delhi (hereafter referred to as ‘Ld. CIT(A)’ has erred in law and in facts in upholding reopening u/s.147 of the Income Tax Act, 1961 by Ld. AO Without prejudice to the above grounds, we raise the following grounds: 2. On the facts and in the circumstances of the case as well as in law, the Ld. CIT(A) has erred in law and in facts in upholding addition u/s.69A to the tune of Rs.13,98,575/-
The assessee filed return of income for the Assessment Year 2014-15 on 13.09.2015 declaring total income of Rs.8,62,516/-. The same was processed under Section 143(1) of the Income tax Act, 1961. As per the information received from the DDIT (Investigation), Shri Jignesh Shah and Shri Sanjay Shah were engaged in providing accommodation entries and bogus Long Terma Capital Gain (LTCG)/loss using various Penny Stock Companies which are listed in BSE. The assessee was one of the beneficiaries of obtaining accommodation entries and bogus LTCG who has taken accommodation entries of bogus LTCG to the tune of Rs.11,26,400/- on sale of 64,000 shares of M/s. Safal Herbs Limited. The assessee was called for the details for which the assessee has given the details as well as the submission and after taking into account submissions the Assessing Officer made addition of Rs.11,26,400/- as unexplained money under Section 69A of the Act as well as Rs.2,72,175/- under Section 69A of the Act in respect of sale of shares of M/s Excel Castronics Limited.
Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee.
The Ld. AR submitted that the CIT(A) has passed ex-parte order without deciding the matter on merits and, therefore, the matter may be remanded back to the file of the CIT(A) for proper adjudication of the issues on merit.
The Ld. DR relied upon the Assessment Order and the Order of the CIT(A).
We have heard both the parties and perused all the relevant material available on record. The CIT(A) has given ample opportunity to the assessee by issuing notice and it is not the case of the assessee that the notices were not issued to the assessee and the same was not received by the assessee. But the CIT(A) has passed the order without hearing the assessee’s plea as ex-parte order. Therefore, it will be appropriate to remand back this matter to the file of the CIT(A) for proper adjudication of the issues on merit. Needless to say, the assessee be given opportunity of hearing by following the principles of natural justice. It is further directed to the assessee that the assessee will pay a cost of Rs.5,000/- (Rupees Five Thousand only) to the Prime Minister’s Relief Fund within the period of two weeks from the date of receipt of this order. It is further directed to the assessee that the assessee will fully co-operate with the proceedings before the CIT(A) and if the assessee fails to do so, the CIT(A) is at liberty to pass appropriate order accordingly
In the result, appeal of the assessee is partly allowed for statistical purpose. Order pronounced in the open Court on this 26th September, 2024.