ASHOK APPAJI PATIL,BELGAUM V. INTL. TAXATION WARD, PANAJI, PANAJI

ITA 49/PAN/2025

AI Insights

The case involves Ashok Appaji Patil, who appealed against the final assessment order passed by the Assessing Officer (AO) under sections 144 and 144C(13) of the Income Tax Act, 1961. The AO had made additions to the assessee's income based on unexplained investments and credits related to property purchases. The DRP partially upheld the AO's decision, leading to the current appeal. The Tribunal found that the assessee was not given an adequate opportunity to present his case regarding the unexplained credits and directed a re-examination of this issue.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705873 (ITAT-PANAJI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIJULA UNIYAL.
• Assessee Lawyers: LETTER DT
• Keywords: Unexplained cash credit; Unexplained investment; Principle of natural justice; Reason to believe
• Section: 144; 142(1); 69

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI G D PADMAHSHALI ACCOUNTANT MEMBER I T A.No.49/PAN/2025 (A.Y.2016-17) Ashok Appaji Patil, 3338/1A,Sankalp building, Gondhalli Galli, Belagavi-590001, Karnataka. Vs. I T O, International Taxation, 3 floor, REAC, Panaji-403001, Goa. PAN/GIR No:AQOPP2917M Appellant .. Respondent Appellant by : Letter dt 1-07-2025. Respondent by : Smt.Rijula Uniyal.Sr.DR Date of Hearing 02.07.2025 Date of Pronouncement 03.07.2025 आदेश / O R D E R PER PAVAN KUMAR GADALE, JM: The assessee has filed the appeal against the order of the Assessing Officer passed u/s 144 r.w.s 144C(13) of the Income Tax Act, 1961 passed in pursuance to the directions of the Dispute Resolution Panel (DRP) u/s 144C(5) of the Act. The assessee has raised grounds of appeal challenging the action of lower authorities DRP/AO partly sustaining the addition without providing ITA.49/PAN/2025 Ashok Appaji Patil. - 2 - adequate opportunity of hearing and not considering the submissions and evidences. 2. The brief facts of the case are that, the assesse has not filed the return of income for A.Y.2016-17.The Assessing Officer (AO) based on the information from RMS data found that the assesse has purchased immovable property of Rs.1,60.00.000/ in the F.Y.2015-16. The assessing officer has reason to believe that the income has escaped assessment and has issued the notice u/sec148 of the Act dated 26.03.2023 and incompliance, the assesse has filed the return of income disclosing a total income of Rs.NIL on 24.04.2023. Further notice u/sec 143(2) and U/sec 142(1) of the Act are issued to furnish the details of sources and documents supporting the purchase of property. The assessee has filed the explanations along with sources and housing loan with respect to purchase of two flats at Borivali Mumbai dealt at Para 5 to 7.4 of the order. Whereas the AO was not satisfied with the explanations in respect of Sources of purchases to the extent of Rs.42,00,000/- made an addition u/sec 69 & u/sec69A of the Act and assessed the total income ITA.49/PAN/2025 Ashok Appaji Patil. - 3 - of Rs.42,00,000/- and passed a draft assessment order on 19.03.2024 u/s 144C(1) of the Act. 3. Aggrieved with the draft assessment order, the assessee has filed the objections in Formno-35A with the Dispute Resolution Panel (DRP). The DRP has dealt on the objections, submissions and remand report and issued directions to the A.O for deleting the addition u/sec69 of the Act of Rs.32,00,000/- on account of unexplained investment and similarly rejected the explanations on the unexplained credits u/sec69A of the Act of Rs.10,00,000/- and passed the directions u/s 144C(5) of the Act vide order dated 11.12.2024. Subsequently, the A.O. after the receipt of the orders of the DRP, has passed the final assessment order with addition u/sec69A of the Act and assessed the total income of Rs.10,00,000/-and passed the order u/s144 r.w.s 144C(13) of the Act dated 29-01-2025. Aggrieved by the order of the AO, the assessee has filed an appeal before Honble Tribunal. 4. We heard the Ld.DR submissions and perused the material on record. The assessee in the grounds of appeal challenged that the DRP has erred in overlooking the submissions, documents, bank statements and confirmation letters in respect of ITA.49/PAN/2025 Ashok Appaji Patil. - 4 - addition of unexplained credits u/sec69A of the Act and also the DRP has not provided adequate opportunity to the assessee considering the constraints of the assessee stationed on a ship. Whereas the evidences play a important role in decision making in the adjudicating proceedings. Accordingly, we considering the principles of natural justice, restore the disputed issue to the extent of addition sustained u/sec69A of the Act for limited purpose the file of the DRP to relook afresh on the addition u/sec69A of the act and pass the order and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information. And we allow the grounds of appeal for statistical purpose. 5. In the result, the appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 03.07.2025. Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated 03.07.2025 ITA.49/PAN/2025 Ashok Appaji Patil. - 5 - आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant 2. Ĥ×यथȸ / The Respondent. 3. संबंͬधत आयकर आयुÈत / The CIT 4. आयकर आयुÈत(अपील) / Concerned CIT 5. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय अͬधकरण, अहमदाबाद / DR, ITAT, 6. गाड[ फाईल / Guard file. आदेशानुसार/ BY ORDER, स×याͪपत ĤǓत //True Copy// 1. ( Asst. Registrar) ITAT, Panaji Date Initial 1. Draft dictated on PS 2. Draft placed before author PS 3. Draft proposed & placed before the second member PS 4. Draft discussed/approved by Second Member. PS 5. Approved Draft comes to the Sr.PS/PS PS 6. Kept for pronouncement on 7. File sent to the Bench Clerk 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Dictation Pad is enclosed 2. Other M "