CHIRAGBHAI JADURAI PATEL,AHMEDABAD V. THE INCOME TAX OFFICER, WARD-1(2)(1), AHMEDABAD

ITA 708/AHD/2024

AI Insights

This case involves an appeal by Chiragbhai Jadurai Patel against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal pertains to the Assessment Year 2016-17 and challenges the reopening of the assessment and subsequent additions made by the AO under various sections of the Income Tax Act, 1961. The primary issues revolved around the validity of the reopening of the assessment, the jurisdiction assumed by the AO based on vague information, and the mechanical approval granted under section 151 of the Act. The ITAT found procedural lapses and remanded the case back to the AO for a thorough re-assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472322 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 18-11-2024
• Assessment Year: 2016-2017
• Appeal Filed On: 12-04-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C. DHARANI NATH
• Assessee Lawyers: MAHESH CHHAJED
• Keywords: Reopening of assessment; Principle of natural justice; Borrowed satisfaction
• Section: 69A

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदा बा द \u0012ा यपीठ SMC, अहमदा बा द । IN THE INCOME TAX APPELLATE TRIBUNAL “ SMC ” BENCH, AHMEDABAD ] BEFORE DR. BRR KUMAR, VICE PRESIDENT MS. SUCHITRA KAMBLE, JUDICIAL MEMBER आयकर अपील सं /ITA No.708/Ahd/2024 िनधा \u000fरण वष\u000f /Assessment Year : 2016-17 Chiragbhai Jadurai Patel C/o. M.S. Chhajed & Co., CA, “Kamal Shanti” Nr.Sardar patel Statue, Ahmedabad – 380 014 (Gujarat) बनाम/ v/s. The ITO Ward-1(2)(1) Ahmedabad – 380 015 \u0013थायी लेखा सं./PAN: AHFPP 9617 E (अपीलाथ\u0017/ Appellant) (\u0018\u0019 यथ\u0017/ Respondent) Assessee by : Shri Mahesh Chhajed, AR Revenue by : Shri C. Dharani nath, Sr.DR सुनवाई की तारीख/Date of Hearing : 18/11/2024 घोषणा की तारीख /Date of Pronouncement: 22/11/2024 आदेश/O R D E R PER DR. BRR KUMAR, VICE PRESIDENT This is an appeal filed by the assessee against the order of the Ld.Commissioner of Income Tax (Appeals) [CITA] , National Faceless Appeal Centre, Delhi in proceeding u/s.250 of the Income Tax Act, 1961 vide order dated 06/03/2024 passed for the Assessment Year (AY) 2016-17. 2. The grounds of appeal taken by the assessee are as under:- 1. The order passed by the Ld. CIT (A) is against law, equity & justice. ITA No. 708/Ahd/2024 Chiragbhai Jadurai Patel vs. ITO Asst. Year : 2016-17 2 2. The Ld. CIT (A) has erred in law and on facts in upholding validity of reopening of assessment though Reopening of assessment is on borrowed satisfaction and without independent application of mind. 3. The Ld. CIT (A) has erred in law and on facts in upholding validity of reopening of assessment though the Ld. AO has assumed jurisdiction on the basis of some non specific & vague information. 4. The Ld. CIT (A) has erred in law and on facts in upholding validity of reopening of assessment done by the Ld. AO for cash deposit in bank accounts. 5. The Ld. CIT (A) has erred in law and on facts in upholding validity of reopening of assessment though Ld. CIT has granted mechanical approval u/s 151 of the Act. 6. The CIT(A) has erred in law and on facts in upholding addition made by the Ld. A.O. of Rs. 10,24,100/- U/S 69A r.w.s 115BBE of the Act. 7. The CIT (A) has erred in law and on facts in upholding the addition made by the Ld. A.O. of Rs. 6,15,642/- for credit entries through RTGS. 8. The appellant Craves liberty to add, amend, alter or modify all or any grounds of appeal before final appeal. 3. The brief facts of the case are that the assessee is Restaurateur having source4 of income from Business and Profession and income from other sources. The assessee has filed his return of income on 13/04/2017 declaring total income of Rs.2,58,800/-. The assessment proceedings were initiated on the assessee u/s.147 of the Income Tax Act, 1961 (“the Act”) and ultimately concluded in passing of the order u/s.147 r.w.s.144/144B of the Act, owing to non-filing of evidences before the Assessing Officer. The addition made by the AO has been confirmed by the Ld.CIT(A) by passing of an ex-parte order due to non-compliance of the notices issued to the assessee by the Ld.CIT(A). ITA No. 708/Ahd/2024 Chiragbhai Jadurai Patel vs. ITO Asst. Year : 2016-17 3 4. We have heard both the parties and perused the material available on record. Before us, the Ld.Cousel for the assessee has fairly agreed to pay an amount of Rs.5,000/- towards the cost, which shall be deposited in the Prime Minister’s National Relief Fund and the copy of proof to the AO, who shall issue the notice to the assessee and pass an assessment order De novo. The amount to be deposited within a period of two weeks from the receipt of this order. Thus, the matter is remanded back to the file of the AO for proper verification and adjudication of the issues as per the Income Tax Statute. Needless to say, the assessee be given proper opportunity of hearing in the interest of natural justice. It is further directed that the assessee will take utmost care, who appear before the AO and fully co-operate with the assessment proceedings. Otherwise, the AO is at liberty to take appropriate action and adjudicate the matter as per law. 5. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Court on 22nd November, 2024 at Ahmedabad. Sd/- Sd/- (SUCHITRA KAMBLE) JUDICIALMEMBER ( DR. BRR KUMAR ) VICE PRESIDENT टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS ITA No. 708/Ahd/2024 Chiragbhai Jadurai Patel vs. ITO Asst. Year : 2016-17 4 आदेश की ितिलिप अ!ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\" / The Appellant 2. #थ\" / The Respondent. 3. संबंिधत आयकर आयु% / Concerned CIT 4. आयकर आयु% ) अपील ( / The CIT(A)-(NFAC), Delhi 5. िवभागीय ितिनिध अिधकरण अपीलीय आयकर /DR,ITAT, Ahmedabad, 6. गाड\u000f फाईल / Guard file. आदेशानुसार/ BY ORDER, स#ािपत ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad 1. Date of dictation pad attached with file : 20.11.2024 2. Date on which the typed draft is placed before the Dictating Member. : 21.11.2024 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 22.11.24 7. Date on which the file goes to the Bench Clerk. : 22.11.24 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order : "