BHARATKUMAR KANTIJI THAKOR,GANDHINAGAR V. THE ITO, WARD-1, GANDHINAGAR

ITA 1358/AHD/2024

AI Insights

This case involves an appeal by Bharatkumar Kantiji Thakor against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, concerning the assessment year 2010-11. The primary issues in the appeal included the legality of the reopening of the assessment under section 148 of the Income Tax Act, 1961, and various additions made to the assessee's income, which were contested as unexplained money, capital gains, and unexplained investments. The NFAC's decision to confirm these additions was challenged on grounds of improper legal procedure and lack of substantive evidence. The Income Tax Appellate Tribunal (ITAT) found that the NFAC had not adequately addressed the merits of the case and thus remanded it back to the AO for a detailed examination.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 33526 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 07-10-2024
• Assessment Year: 2010-2011
• Appeal Filed On: 12-07-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVINDRA
• Assessee Lawyers: PARIN SHAH
• Keywords: Set aside; Unexplained investment; Cost of acquisition; Reopening of assessment; Initiation of penalty proceedings
• Section: 148; 250; 56(2)(vii)(b); 69A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD ] ] BEFORE DR. BRR KUMAR ACCOUNTANT MEMBER ITA No.1358/Ahd/2024 Asstt.Year : 2010-11 Bharatkumar Kantiji Thakor 113-1, Koteshwar Gam Vadvalo Vas Motera Gam Gandhinagar. PAN : AKGPT 9389 P Vs ITO, Ward-1 Gandhinagar. (Applicant) (Responent) Assessee by : Shri Parin Shah, CA Revenue by : Shri Ravindra, Sr.DR सुनवाई क\t तारीख/Date of Hearing : 07/10/2024 घोषणा क\t तारीख /Date of Pronouncement: 07/10/2024 आदेश आदेश आदेश आदेश/O R D E R This is assessee’s appeal against the order of the ld.Commissioner of Income Tax (Appeal), National Faceless Appeal Centre (NFAC), Delhi dated 14.05.2024 for the Asst.Year 2010-11 passed under section 250 of the Income Tax Act, 1961 (“the Act” for short). 2. The grounds raised by the assessee in the appeal are as under: 1. The order passed by lower authorities is bad in law and required to be quashed. 2. The reopening of assessment u/s 148 is bad in law as same has been done for verification purpose only for making fishing and roving inquiries. 3. The reopening of assessment u/s 148 is bad in law as same has been done without recording escapement of income. 4. The reopening of assessment u/s 148 is bad in law as same has been reopened beyond period of 4 years from the end of assessment year without recording satisfaction of failure on part of appellant to disclose fully and truly material facts. 5. Ld. NFAC erred in law and on facts in confirming addition of Rs.13.54,783/- as unexplained money u/s 69A of the Act. ITA No.1358/Ahd/2024 2 6. Ld. NFAC erred in law and on facts in confirming addition of Rs.2,66,566/- on account of capital gain by replacing cost of acquisition without referring the same to valuation officer. 7. Ld. NFAC erred in law and on facts in confirming addition of Rs.1,25,765/- by treating investment made as unexplained investment. 8. Ld. NFAC erred in law and on facts in confirming addition of Rs.72,153/- by invoking section 56(2)(vii)(b) of the Act. 9. The order passed by NFAC is in violation of section 250(6) of the Act and accordingly, same may be set aside to adjudicate on merits. 10. Charging of Interest u's 234A.234B,234C & 234D are unjustified. 11. Initiation of penalty proceedings u/s 271(l)(c) is unjustified. 3. On through the order of the ld.CIT(A) it is found that the appeal of the assessee has been summarily dismissed without adjudicating the issue on merits. Hence, in the fitness of things, the case is hereby remanded back to the AO for adjudicating the issue afresh. In the set aside proceedings, the assessee shall co-operate with the Revenue authorities and shall not seek unnecessary adjournment. 4. In the result, the appeal of the assessee is allowed for statistical purpose. Dictated on the Open Court, typed and pronounced on 7th October, 2024. Copy of this order be given to the assessee. The Registry is directed to dispatch as per procedure. Sd/- (DR. BRR KUMAR) ACCOUNTANT MEMBER Ahmedabad, dated 07/10/2024 vk* "