CHIRAGBHAI HASMUKHBHAI PATEL,SABARKANTHA V. THE ITO, WARD-4, HIMATNAGAR

ITA 308/AHD/2025

AI Insights

The case involves Chiragbhai Hasmukhbhai Patel, the appellant, contesting the appellate order from the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, which confirmed the order passed by the Income Tax Officer under section 147 of the Income Tax Act. The appellant challenged the reopening of the assessment, claiming it was without valid reason and that the additions made to his income were unjustified. The primary issues revolved around the legality of the assessment reopening, the validity of the additions made, and the procedural fairness in the handling of the appellant's submissions. The Tribunal found that the appellant was not given a fair opportunity to present his case, leading to the decision to remand the case for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314241 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHAVNASINGH GUPTA
• Assessee Lawyers: D K PARIKH
• Keywords: Additional evidence; Reopening of assessment; Non compliance
• Section: 147

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER I.T.A. No.308/Ahd/2025 (Assessment Year: 2012-13) Chiragbhai Hasmukhbhai Patel, Sundarpura, P.O Sundarpura, Taluka Bayad, Sabarkantha-383325. [PAN :BBBPP9868 A] Vs. Income Tax Officer, Ward-4, Himatnagar. (Appellant) .. (Respondent) Appellant by : Shri D K Parikh , AR Respondent by: Ms. Bhavnasingh Gupta, Sr DR Date of Hearing 01.05.2025 Date of Pronouncement 06.05.2025 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 18.06.2024 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. The learned CIT(Appeals) / NATIONAL FACELESS APPEAL CENTRE | NFAC) has grievously erred both in law and on facts in Confirming the order passed by Id AO [ITO WARD-4, HIMATNAGAR) u/s 147 of the Act by not properly considering the appellants plea based on direct decisions that reopening of assessment was without valid \"Reason\" to believe that deposits in bank amounted to escaped income. The order passed by Id AO being illegal and without jurisdiction, the same ought to be quashed. It be quashed now. ITA No. 308/Ahd/2025 CHIRAGBHAI h pATEL. Vs. ITO Asst. Year : 2012-13 - 2– 2. Without prejudice to the above ground, the Id CIT(A)/NFAC further erred both in law and on facts in confirming additions of Rs. 20,02,032/- comprising of explained sources as submitted to him that there was previous cash withdrawals from very same bank account which was re- deposited and the credits by cheques were from party whose confirmation was filed and also evident from narration in bank account statement. The additions being untenable on facts and against sanction of law be deleted now. 3. Without prejudice to the above grounds, the id CIT(A)/NFAC miserably failed to consider the fact that as the appellant being a farmer and had no any undisclosed source of other income, and also, since no books of account are at all required to be maintained, section 69A of the IT Act was wrongly invoked. The addition made by Id AO by wrongly invoking section 69A of the IT Act ought to be deleted. It be deleted now 4. Without prejudice to the above, the Id CIT(A)/NFAC further grievously erred in law and on facts in not considering that in view of the additional evidences furnished were vital and significant to render justice and bring facts on record and hence the same ought not to be rejected on technical grounds when the appellant had filed reply dated 11.11.2019 in response to AO's notice which could not be considered even when the assessment was finalized on 15.11.2019. It be so held now and additions made be deleted. 5. Both the lower authorities erred in law and on facts in not affording adequate. opportunity on the facts of the case as narrated in Statement of Facts before id CIT(A) and also now explained in the affidavit executed for the reasons of non compliance and non filing appeal in time. The same be considered in best interest of justice to finally find the facts. 6. The appellant craves leave to add, alter, modify or delete any of the grounds at the 3. At the outset, the Ld. Counsel for the assessee pleaded that the assessee could not file submission before the Assessing Officer. The Ld. Counsel further prayed that, given an opportunity due compliance will be made before the Assessing Officer. Since the order of the Ld. CIT(A) is also an ex-parte without adjudication of the issues on merits, we hold that no prejudice will be caused to the revenue if an opportunity is given to the ITA No. 308/Ahd/2025 CHIRAGBHAI h pATEL. Vs. ITO Asst. Year : 2012-13 - 3– assessee to represent his case before the Assessing Officer. Hence, the matter is remanded to the Assessing Officer for conducting assessment de- novo. 4. In the result, the appeal filed by the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 06.05.2025 Sd/- Sd/- Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 06.05.2025 MV 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 "