DAXESHKUMAR CHIMANBHAI PATEL,DHUNDAKUVA BORSAD V. INCOME TAX OFFICER 1(3)(3) VADODARA, INCOME TAX OFFICE VADODARA

ITA 1047/AHD/2023

AI Insights

The case involves Daxeshkumar Chimanbhai Patel, an agriculturist, who appealed against the order of the CIT(A), National Faceless Appeal Centre, Delhi, for the Assessment Year 2017-18. The primary contention was the absence of a notice under section 143(2) during the assessment proceedings, which the assessee argued was mandatory for the validity of the proceedings. Additionally, the assessee contested the additions made under section 69A as unexplained money, amounting to Rs.53,87,650, based solely on bank credit entries. The Assessing Officer had made these additions following the demonetization period, where significant cash deposits were noted in the assessee's bank accounts. The CIT(A) upheld the Assessing Officer's decision, leading to the appeal before the Tribunal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 470515 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: B. P. SRIVASTAV
• Assessee Lawyers: ADJOURNMENT APPLICATION FILED
• Section: 144; 142(1); 143(2); 131; 69A

Judgement Text

"ITA No.1047/Ahd/2023 Assessment Year: 2017-18 Daxeshkumar Chimanbhai Patel vs. ITO Page 1 of 4 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH, AHMEDABAD BEFORE DR. BRR KUMAR, VICE PRESIDENT & Ms. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No.1047/Ahd/2023 Assessment Year: 2017-18 Daxeshkumar Chimanbhai Patel, Dhundakuva Borsao, At Bobrsad District, Anand – 388 540. [PAN – AVKPP 8230 C] Vs. The Income Tax Officer, Ward – 1(3)(3), Vadodara. (Appellant) (Respondent) Assessee by Adjournment Application filed Revenue by Shri B.P. Srivastav, Sr. DR Date of Hearing 06.03.2025 Date of Pronouncement 19.03.2025 O R D E R PER SUCHITRA KAMBLE, JUDICIAL MEMBER: This appeal is filed by the Assessee against order dated 16.10.2023, passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the Assessment Year 2017-18. 2. The assessee has raised the following grounds of appeal: “1. On the facts and in the circumstance of the case and in law, the Hon'ble CIT (Appeals) has erred in upholding the order passed by the Learned A.O. even though the order passed by L'd A.O. is erroneous in law as no notice for assessment was issued under section 143(2) as is mandatorily required to issued for assessment proceedings to be valid. 2 On the facts and in the circumstance of the case and in law, the Hon'ble CIT (Appeals) has erred in confirming the additions of Rs.53,87,650/- made under 69A by Learned A.O. as unexplained money on basis of credit entries only in the bank accounts. 3 The Hon'ble CIT (Appeals) has erred in law and in fact in confirming the order passed under section 144 of the Income Tax Act, 1961 by the ITA No.1047/Ahd/2023 Assessment Year: 2017-18 Daxeshkumar Chimanbhai Patel vs. ITO Page 2 of 4 Learned A.O. as the assessment order was passed without service of proper notices. The proceedings were carried out without properly communicating the notices to the appellant as required as per the Income Tax Law and hence the order passed without communication of notice was illegal, invalid and bad in law and the same be held so. 4 The Hon'ble CIT (Appeals) has erred in law and in fact in confirming the order passed by the Learned A.O. on the ground of verification of records and merits of the case though the order has been passed without consideration of verification of records and merits of the case. 5 The appellant craves leave to add, amend, alter, delete, change or modify any or all grounds of appeal before or at the time of the hearing.” 3. The assessee is a Farmer/Agriculturist and has not filed return of income. As per the information available, the Assessing Officer noticed that during the period of demonetisation from 09.11.2016 to 30.12.2016, the assessee made cash deposits. Subsequent to the same, statutory notices under Section 142(1) r.w.s.129 of the Income Tax Act, 1961 was issued on 28.05.2019 and 06.08.2019. The summons under Section 131 of the Act dated 23.08.2019 was also issued thereby calling upon the Banks (Bank of Baroda & Dena Bank) for the information related to the cash deposits during the demonetisation period. The assessee has not submitted any details before the Assessing Officer and, therefore, the Assessing Officer observed that since the source of cash deposits of Rs.11,87,500/- and other amount of Rs.42,00,151/- credited in assessee’s Bank account was not proved by the assessee and hence made total addition of Rs.53,87,651/- as unexplained money under Section 69A of the Act and the total income assessed was taxed under Section 115BBE of the Act @ 60%. 4. Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. At the time of hearing, the Chartered Accountant of the assessee filed adjournment letter dated 06.03.2025, the same is rejected and none appeared before the Tribunal. After going through the records, we are taking the cognisance of the grounds taken by the assessee before the CIT(A) as well as the submissions/statement of facts attached to Form no.35. ITA No.1047/Ahd/2023 Assessment Year: 2017-18 Daxeshkumar Chimanbhai Patel vs. ITO Page 3 of 4 6. The Ld. DR submitted that the assessee has taken ground no.1 related to issuance of notice under Section 143(2) of the Act but the same is not required in assesses case as the assessee has a not filed return of income. Hence, issuing of notice under Section 143(2) of the Act does not arise. Thus, ground no.1 of assessee’s appeal is dismissed. 7. Ther Paper Book filed by the assessee before us is not properly certified and, therefore, not taken into consideration. 8. After hearing the Ld. DR and going through the order of the CIT(A), it appears that the CIT(A) has passed ex-parte order without going into the merits of the case. Since the assessee is an Agriculturist who is illiterate and the Assessment Order as well is passed under Section 144, it will be appropriate to remand back this matter to the file of the Assessing Officer for proper adjudication of the evidences/documents which the assessee is directed to be filed before the Assessing Officer and the Assessing Officer is directed to adjudicate the issue on merit as per the Income Tax Act. The assessee be given opportunity of hearing by following the principles of natural justice. Thus, the appeal of the assessee is partly allowed for statistical purpose. 9. In the result, appeal filed by the assessee is partly allowed for statistical purpose. Order pronounced in the open Court on this 19th March, 2025. Sd/- Sd/- (DR. BRR KUMAR) (SUCHITRA KAMBLE) Vice President Judicial Member Ahmedabad, the 19th March, 2025 PBN/* ITA No.1047/Ahd/2023 Assessment Year: 2017-18 Daxeshkumar Chimanbhai Patel vs. ITO Page 4 of 4 Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order TRUE COPY Assistant Registrar Income Tax Appellate Tribunal Ahmedabad benches, Ahmedabad "