BEENA JASHWANTBHAI PATEL L/H OF LATE SHRI JASHWANTBHAI ISHWARBHAI PATEL,AHMEDABAD V. THE ACIT, CIRCLE, GANDHINAGAR

ITA 1274/AHD/2024

AI Insights

The case involves an appeal by Beena Jashwantbhai Patel, the legal heir of the late Shri Jaswantbhai Ishwarbhai Patel, against the order of the National Faceless Appeal Centre (NFAC), which had dismissed the appeal for want of prosecution and confirmed substantial additions to the assessee's income under various heads including unsecured loans and sundry debtors for the Assessment Year 2019-20. The tribunal noted procedural lapses in the handling of the appeal by the NFAC, particularly the lack of a reasonable opportunity of hearing and the decision made ex-parte. The tribunal decided to remand the case back to the Assessing Officer for a fresh assessment, emphasizing the need for adherence to legal principles and proper procedural conduct.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474035 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2019-2020
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R N DSOUZA
• Assessee Lawyers: ADJOURNMENT APPLICATION FILED
• Section: 144; 68

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE DR.BRR KUMAR, VICE PRESIDENT SHRI T.R SENTHIL KUMAR, JUDICIAL MEMBER I.T.A. No.1274/Ahd/2024 (Assessment Year:2019-20 Beena Jashwantbhai Patel, L/H of Late Shri Jaswantbhai Ishwarbhai Patel, B/001-002, Sagun Castel Complex, Satellite Park, Satellite, Ahmedabad-380015. Vs. The Assistant Commissioner of Income Tax, Circle, Gandhinagar. [PAN No.ACSPP9227C] (Appellant) .. (Respondent) Appellant by : Adjournment Application Filed Respondent by: Shri R N Dsouza, CIT.DR Date of Hearing 03.02.2025 Date of Pronouncement 04.02.2025 O R D E R PER: DR. BRR KUMAR, VICE PRESIDENT: This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Appeal)/National Faceless Appeal Centre, Delhi vide order dated 24.04.2024 for the Assessment Year 2019-20. 2. The Assessee has taken the following grounds of appeal:- (1) That on facts, in law, and on evidence on record, the learned National Faceless Appeal Centre (NFAC) has grievously erred in not providing sufficient and reasonable opportunity of hearing and in deciding the appeal vide ex-parte order and in dismissing it for want of prosecution. ITA No. 1274/Ahd/2024 Asst.Year 2019-20 - 2– (2) That on facts, in law, and on evidence on record, the NFAC ought to have decided the grounds of appeal on merits, as prayed for. (3) That on facts, and in law, the learned NFAC ought to have held that the assessment order passed in the name of deceased assessee is invalid and void ab- initio. (4) That on facts, in law, and on evidence on record, the learned National Faceless Appeal Centre (NFAC) has grievously erred in confirming the addition made u/s 68 of the Act of Rs. 18,47,75,393/- which is total of Unsecured Loans of Rs.6,22,28,444/-Sundry Debtors of Rs.1,79,28,498/- and Current Assets, Loans & advances and Deposit works of Rs.10,46,18,451/- (5) The appellant craves leave to add, alter, amend any ground of appeal. 3. The assessment in this case has been completed u/s. 144 of the Act by adding unsecured loans of Rs.6,22,28,444/-, Sundry debtors of Rs.1,79,28,498/- and loans and advances given to others of Rs.10,46,18,451/-. owing to the absence of any reply from the assessee and the same has been confirmed summarily by the Ld. CIT(A), in the order passed, dismissing the appeal of the assessee for want of prosecution. Before us, it was submitted that the assessee stands expired and the legal heir of the assessee was brought on record to who filed appeal before us. 4. Having gone through the record before us, we find that the additions have been made both on the asset and liability side of the balance-sheet by the Assessing Officer which is a patent violation of principle of taxation. Since the action of the AO making the addition and action of the Ld.CIT (A) for not adjudicating on merits, we feel that in the interest of justice would be well served by remanding the file to the Assessing Officer for assessment de-novo. The assessee shall reply to all the notices issued by the revenue authorities from time to time, failing which the AO is at liberty to initiate penalty proceeding as per the provisions of the Act. ITA No. 1274/Ahd/2024 Asst.Year 2019-20 - 3– 5. In the result, the appeal of the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 04.02.2025 Sd/- Sd/- (T.R SENTHIL KUMAR) (DR. BRR KUMAR) JUDICIAL MEMBER VICE PRESIDENT (True Copy) Ahmedabad; Dated 04.02.2025 Manish, Sr. PS TRUE COPY आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant 2. ᮧ᭜यथᱮ / The Respondent. 3. संबंिधत आयकर आयुᲦ / Concerned CIT 4. आयकर आयुᲦ(अपील) / The CIT(A)- 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडᭅ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad "