BHAGWAN RAOSAHEB DAMALE,LADSANGVI V. INCOME TAX OFFICER, WARD 1(9), AURANGABAD, AURANGABAD

ITA 1441/PUN/2024

AI Insights

The case involves Bhagwan Raosaheb Damale, the appellant, contesting an order from the Commissioner of Income Tax (Appeals) which upheld a reassessment order by the Assessing Officer. The reassessment added Rs. 24,31,592 as unexplained money under section 69A of the Income Tax Act, 1961. The appellant argued that some of the cash deposits were sourced from previous cash withdrawals and used for business purposes, which the Commissioner did not accept. Additionally, the appellant contested the validity of the reassessment order due to the absence of a Document Identification Number (DIN) and the non-provision of reasons for reopening the assessment. The Tribunal, referencing directives from the Bombay High Court, found that the Assessing Officer failed to provide the recorded reasons for reopening the assessment, leading to the setting aside of the Assessment Order and a directive for a de-novo assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472082 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 28-11-2024
• Assessment Year: 2012-2013
• Appeal Filed On: 02-07-2024
• Other Referred Cases: Tata Capital Financial Services Ltd. v. Asstt. CIT [2022] 137 taxmann.com 315/287 Taxman 1 (Bom.), Sahebrao Deshmukh Co-op. Bank Ltd. Vs. Assistant Commissioner of Income-tax 455 ITR 92
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANOJ TRIPATHI
• Assessee Lawyers: DHIRAJ DANDGAVAL
• Keywords: Reassessment proceedings; Reopening of assessment; Principle of natural justice
• Section: 69A

Judgement Text

" ।आयकरअपीलीयअिधकरण ”एस एम सी” ɊायपीठपुणेमŐ। IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “SMC” :: PUNE BEFORE DR.DIPAK P. RIPOTE, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.1441/PUN/2024 िनधाᭅरण वषᭅ / Assessment Year: 2012-13 Bhagwan Raosaheb Damale, At Post Ladsangvi, Aurangabad, Maharashtra – 431007. PAN: AZWPD4618F V s The Income Tax Officer, Ward-1(9), Aurangabad. Appellant/ Assessee Respondent / Revenue Assessee by Shri Dhiraj Dandgaval – CA/AR Revenue by Shri Manoj Tripathi – DR Date of hearing 28/11/2024 Date of pronouncement 29/11/2024 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: This is an appeal filed by the assessee against the order of ld.Commissioner of Income Tax(Appeals)[NFAC] for Assessment Year 2012-13 dated 19.03.2024 passed u/sec.250 of the Income tax Act, 1961. The Assessee has raised the following grounds of appeal : “1. On the facts and in the circumstances of the case and in law the Ld, Commissioner of Income Tax (Appeal) is not justified is upholding the Reassessment order of the Assessing Officer making addition of ITA No.1441/PUN/2024 2 Rs.24.31,592/- in the hands of the assessee u/s 69A of the Income Tax Act, 1961 being unexplained money. 2. On the facts and in the circumstances of the case and in law the Ld. Commissioner of Income Tax (Appeal) has not accepted the assessee’s submission that some of the cash deposit was sourced from the previous cash withdrawn from the bank account. 3. On the facts and in the circumstances of the case and in law the Ld. Commissioner of Income Tax (Appeal) has not accepted that the cash withdrawn was used for business purposes and purchases were made from the same. 4. On the facts and in the circumstances of the case and in law the reassessment order is not a valid order as the DIN is not mentioned thereon by the Assessing Officer. 5. On the facts and in the circumstances of the case and in law the reassessment proceedings shall be considered as invalid as the reasons recorded for reopening of the assessment were not supplied to the assessee during the reassessment proceedings. 6. The assessee prays to add. amend, alter, withdraw or delete any of the grounds of appeal raised above during the appellate proceedings in the interest of natural justice.” Findings and Analysis : 2. We have heard both the parties and perused the records. In this case, Assessment Order has been passed u/sec.148 of the Act. At the outset, the Ld.Authorised Representative(ld.AR) for the Assessee submitted that the “Reasons Recorded” by the Assessing Officer for reopening of the case were not provided by the Assessing Officer(AO) to the Assessee. ITA No.1441/PUN/2024 3 2.1 Per Contra, Ld.Departmental Representative(ld.DR) for the Revenue submitted that the Assessee had never asked for copy of the reasons recorded, hence Assessing Officer had not provided the copy. 2.2 Thus, it’s a fact that the Assessing Officer had not provided copy of reasons recorded for Reopening. Admittedly, the Assessee had not asked for the reasons recorded. However, Hon’ble Bombay High Court in the case of Tata Capital Financial Services Ltd. v. Asstt. CIT [2022] 137 taxmann.com 315/287 Taxman 1 (Bom.) and in the case of Sahebrao Deshmukh Co-op. Bank Ltd.Vs.Assistant Commissioner of Income-tax 455ITR 92 had given general directions to the Assessing Officer which specifically mentioned that it is the duty of the Assessing Officer to provide copy of the reasons recorded for reopening of assessment. 2.3 Therefore,respectfully following the directions of Hon’ble Jurisdictional High Court(supra), we direct the Assessing Officer to provide copy of the reasons recorded along with copy of the approval if any obtained from higher authorities for reopening the case. ITA No.1441/PUN/2024 4 2.4 Accordingly, the Assessment Order is set-aside to the Assessing Officer for de-novo assessment. The Assessing Officer shall provide opportunity of hearing to the Assessee.We do not express any opinion on the merit of the case. Accordingly, grounds of appeal raised by the assessee are allowed for statistical purpose. 3. In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 29th November, 2024. Sd/- Sd/- (VINAY BHAMORE) (DR. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 29th Nov, 2024/ SGR* आदेशकᳱᮧितिलिपअᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. िवभागीयᮧितिनिध, आयकर अपीलीय अिधकरण, “एस एम सी” बᱶच, पुणे / DR, ITAT, “SMC” Bench, Pune. 6. गाडᭅफ़ाइल / Guard File. आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune. "