ARVINDKUMAR SHIVSHYAM TRIPATHI,RAJKOT V. THE ITO, WARD-1(9), BHAVNAGAR

ITA 1397/AHD/2025

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The case involves Arvindkumar Shivshyam Tripathi, the appellant, who contested the orders of the Income Tax Officer and the Commissioner of Income Tax (Appeals) regarding the reopening of assessment and addition of Rs.24,60,158 under section 69C of the Income Tax Act, 1961, concerning alleged bogus purchases. The appellant argued that the orders were passed in violation of the principles of natural justice and without proper appreciation of the facts and evidence. The Tribunal noted that the assessee was given multiple opportunities to present his case but failed to do so adequately. In the interest of natural justice, the Tribunal decided to set aside the CIT(A)'s order and remand the case back to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 779375 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Appeal Filed On: 03-07-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUDHAKAR VERMA
• Assessee Lawyers: PARIMALSINH B PARMAR
• Keywords: Set aside; Corroborative evidences; Bogus purchase; Principle of natural justice; Initiation of penalty proceedings; Bogus
• Section: 147; 69C

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT Ms. SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. No.1397/Ahd/2025 (Assessment Year: 2018-19) Arvindkumar Shivshyam Tripathi, Maa Gayatri Traders, Plot No. 2078, Alang Ship Breaking Yard, Nr. Maruti Weigh Bridge, Rajkot-363140 [PAN : AJGPT0953Q] Vs. Income Tax Officer, Ward-1(9), Bhavnagar (Appellant) .. (Respondent) Appellant by : Shri Parimalsinh B Parmar, AR Respondent by: Shri Sudhakar Verma, Sr. DR Date of Hearing 09.10.2025 Date of Pronouncement 14.10.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- The captioned appeal has been filed by the assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals), /National Faceless Appeal Centre, Delhi, vide order dated 17.06.2025 relevant to the Assessment Year 2018-19. 2. The assessee has raised the following grounds of appeal: 1. The Ld. CIT(A) has erred, both in law and on facts, in passing ex-parte order which is in gross violation of the principles of natural justice. 2. The Ld. CIT(A) has erred, both in law and on facts, in confirming the action of learned AO in reopening the assessment under section 147 of the Act. Printed from counselvise.com ITA No. 1397/Ahd/2025 Asst. Year : 2018-19 - 2– 3. The Ld. CIT(A) has erred, both in law and on facts, in confirming, the action of learned AO in making addition of Rs.24,60,158/- under section 69C of the Act in respect of alleged bogus purchases. 4. The Ld. CIT(A) has erred, both in law and on facts, in confirming the action of learned AO in invoking provisions of section 115BBE of the Act in relation to addition of Rs.24,60,158/-made in respect of alleged bogus purchases. 5. Alternatively and without prejudice, the addition in respect of alleged bogus purchases ought to have been restricted to the extent of profit element embedded in such purchases. 6. Both, AO & CIT(A), have erred in passing the impugned orders without properly appreciating facts of the case, submissions of the assessee and documentary evidences available on record in the correct perspective. Such an act is in gross violation of the principles of natural justice and hence, the impugned order deserves to be quashed. 7. The Ld. CIT(A) has erred in law and on facts of the case in confirming levy of interest u/s. 234A/B/C/D of the Act. 8. The Ld. CIT(A) has erred in law and on facts of the case in confirming the action of initiation of penalty proceedings under section 271AAC(1) of the Act. 9. The appellant craves leave to add, amend, alter, edit, delete, modify or change all or any of the grounds of appeal at the time of or before the hearing of the appeal. 3. On perusal of the records, it is observed that the assessee was afforded three opportunities of hearing to furnish the requisite details, clarifications, and explanations in support of genuineness of the transaction. However, despite being granted multiple opportunities, the assessee failed to furnish the requisite details or explanations before the Ld. CIT(A). Consequently, the Ld. CIT(A), based on the material available on record, upheld the action of the Assessing Officer and dismissed the appeal. We also find that the assessee failed to establish the genuineness of its transaction even before the Assessing Officer. Therefore, the Ld. Counsel for the assessee prayed that, given an opportunity, the assessee would produce all necessary details, clarifications, and documentary evidence before the Revenue Printed from counselvise.com ITA No. 1397/Ahd/2025 Asst. Year : 2018-19 - 3– authorities in support of his claim. In view of the above and in the interest of natural justice, we set aside the order of the Ld. CIT(A) and restore the matter to the file of the Assessing Officer for a de novo assessment, with a direction to verify the documentary evidence to be furnished by the assessee and decide the matter in accordance with law. The assessee shall submit all relevant bank statements, documents, and supporting evidence, and to cooperate fully with the Revenue authorities without seeking unnecessary adjournments. 4. In the result, the appeal of the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 14.10.2025. Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) (True Copy) Ahmedabad; Dated 14.10.2025 MV आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "