BHOOMI PROBUILD PRIVATE LIMITED,AHMEDABAD V. THE ITO, WARD-1(1)(2), AHMEDABAD

ITA 923/AHD/2025

AI Insights

The case involves Bhoomi Probuild Private Limited appealing against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, for the Assessment Year 2012-13. The primary contention was regarding the confirmation of an addition of Rs.1,64,13,782 made by the Assessing Officer (AO) on account of cash deposits, which were allegedly already shown in the balance sheet under 'Secured Loans' & 'Unsecured Loans'. The assessee argued that the CIT(A) erred in law and on facts by confirming the addition without considering the merits of the case or the grounds of the appeal. The ITAT noted the assessee's failure to comply with previous notices and submitted documents, leading to the decision to remand the case for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669247 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B.P SRIVASTAVA
• Assessee Lawyers: MEHUL K PATEL
• Keywords: Principle of natural justice; Reason to believe
• Section: 147; 234B

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER I.T.A. No.923/Ahd/2025 (Assessment Year: 2012-13) Bhoomi Probuild Private Limited, A 402, Sahjanand Shopping Centre, Police Commissioner Road, Sahibaug, Ahmedabad-380004. [PAN :AAECB6014 A] Vs. Income Tax Officer, Ward-1(1)(2), Ahmedabad. (Appellant) .. (Respondent) Appellant by : Shri Mehul K Patel, AR Respondent by: Shri B.P Srivastava, Sr DR Date of Hearing 24.06.2025 Date of Pronouncement 26 .06.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal is filed by the Assessee against the appellate order dated 27.02.2025 passed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2012-13. 2. The assessee has raised the following grounds of appeals: 1. Ground 1-On the facts and circumstances of the case, the order passed by the learned Commissioner of Income Tax (Appeals) [CIT(A)] is bad both in the eye of law and on facts. ITA No. 923/Ahd/2025 Bhoomi Probuild Pvt Ltd. Vs. ITO Asst. Year : 2012-13 - 2– 2. Ground 2-On the facts and circumstances of the case, learned CIT(A) has erred both on facts and in law in confirming the addition of Rs.1,64,13,782/- made by the AO on account of cash deposit which was already shown in the balance sheet under the head 'Secured Loans' & 'Unsecured Loans'. 3. Ground 3-On the facts of case, the Ld.CIT(A) has erred in confirming the addition made by AO, without considering the reply submitted by the assessee and without considering the merits of the case. 4. Ground 4- On the facts and circumstances of the case, learned CIT(A) has erred on facts on not considering the grounds of the appeal filed by the assessee. 5. Ground 5-On the facts and circumstances of the case, learned 5 CIT(A) has erred both on facts and in law in passing the order to the assessee is clear violation of principle of natural justice. 6. Ground 6-On the facts and circumstances of the case, learned 6 CIT(A) has erred in law and on facts in charging interest u/s 234A or 234B or 234C. 7. Ground 7-On the facts and circumstances of the case, the learned Assessing Officer erred both in fact and in law by issuing a notice under Section 147 based on a reason to suspect 7 rather than a reason to believe, without possessing any tangible, credible, cogent, and relevant material at the time of issuing the notice. The order was passed solely on the basis of non-complying of notices on time. 8. Ground 8-On the facts and circumstances of the case, the learned Assessing Officer erred both in fact and in law by not considering Article 245 of the Constitution of India - limitation of delegated legislation. 3. On going through the record, we find that the notices u/s.250 were issued by the Ld.CIT(A) on 02.07.2019, 21.08.2019, 09.09.2019, 03.10.2019, 14.10.2019, 19.10.2019, 09.11.2019, 18.11.2019 & 23.11.2019, requesting the assessee to submit certain details/clarification/ explanation regarding the source of unexplained cash deposits. Since the assessee failed to submit any supportive ITA No. 923/Ahd/2025 Bhoomi Probuild Pvt Ltd. Vs. ITO Asst. Year : 2012-13 - 3– evidence/substantial documents before the Ld.CIT(A), the appeal of the assessee was dismissed. At the time of hearing, we noticed that Ld.AR for the assessee has filed an adjournment application. We also find that the assessee has not even complied before the Assessing Officer. Having gone through the fact, we hold that the no prejudice will be caused to the revenue if the Assessing Officer is allowed to examine the details/explanation submitted by the assessee. Hence, the matter is remanded to the Assessing Officer for conducting assessment de-novo and a cost of Rs.10,000/- imposed on the assessee, the amount should be deposited into “Prime Minister Relief Fund” and the receipt shall be submitted before the JAO, who shall take it on record before passing the order giving effect to the order of the ITAT. The assessee shall submit all the relevant document and bank statement and comply with the notices issued by the Assessing Officer without seeking any 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 26.06.2025. Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 26.06.2025 MV ITA No. 923/Ahd/2025 Bhoomi Probuild Pvt Ltd. Vs. ITO Asst. Year : 2012-13 - 4– 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 "