DHAVAL CHANDRAKANT SHINGALA,RAJKOT V. ITO, WARD-1(1)(3), RAJKOT, RAJKOT

ITA 437/RJT/2024

AI Insights

The case involves an appeal by Dhaval Chandrakant Shingala against the order of the Learned Commissioner of Income Tax (Appeals), which had confirmed additions made by the Assessing Officer under section 144 of the Income-tax Act, 1961. The additions included estimated profits from share trading and unexplained cash deposits in bank accounts. The appellant argued that the additions were unjustified and sought a re-examination of the case, citing non-representation by his consultant during the appellate proceedings. The Tribunal found merit in the appellant's request for another opportunity to present his case and thus remanded the matter for fresh assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 473085 (ITAT-RAJKOT)
• Duration Of Justice: 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 29-10-2024
• Assessment Year: 2015-2016
• Appeal Filed On: 21-06-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIMANYU SINGH YADAV
• Assessee Lawyers: MEHUL RANPURA
• Keywords: Set aside
• Section: 144

Judgement Text

" Page | 1 ITA No.437/RJT/2024 Dhaval Chandrakant Singala IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER AND SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER आयकरअपीलसं./ITA No.437/RJT/2024 (\u000bनधा\u000fरणवष\u000f / Assessment Year: (2015-16) (Physical Hearing) Shri Dhaval Chandrakant Shingala Block No.13, Alap Heritage Society opp. Rajwadi Gola, staya Sai Main Road Rajkot -360005 Vs. ITO, Ward -1(1)(3) Rajkot \u0013थायीलेखासं./जीआइआरसं./PAN/GIR No.: BEDPS6999L (Assessee) (Respondent) Assesseeby : Shri Mehul Ranpura, AR Respondent by : Shri Abhimanyu Singh Yadav, Sr.DR Date of Hearing : 29/10/2024 Date of Pronouncement : 25/11/2024 आदेश / O R D E R PER DINESH MOHAN SINHA, AM: The appeal filed by the assessee, is directed against the order passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘NFAC/Ld. CIT(A)’], dated 17.05.2024, u/s 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’), dated 22.12.2017 for Assessment Year 2015-16. 2. The assessee has raised following grounds of appeal: “1.The grounds of appeal mentioned hereunder are without prejudice to one another. Page | 2 ITA No.437/RJT/2024 Dhaval Chandrakant Singala 2.Ld. of Commissioner Income-tax (Appeals), National Faceless Appeal Centre, Delhi [hereinafter referred to as the \"CIT(A)\"] erred on facts as also in law in dismissing the appeal ex-parte. 4.The Id. CIT(A)erred on facts as also in law in confirming addition of Rs.68,25,978/- made by the AO by estimating profit at 1% of total share transaction of Rs.68,25,97,717/-. The addition confirmed is unjustified and uncalled for, which may kindly be deleted. 5.The Id. CIT(A)erred on facts as also in law in confirming addition of Rs.27,54,000/- made on the alleged ground that the appellant failed to explain sources of cash deposit in the bank accounts held with Axis Bank alongwith necessary material evidence. The addition confirmed is unjustified and uncalled for, which deserves to be deleted, may kindly be deleted. The addition confirmed is unjustified and uncalled for, which may kindly be deleted. 6. Your honour’s appellant crave to add, to amend, alter, or withdraw any or more grounds of appeal on or before the hearing of appeal.” 3. Brief facts of the case are that the appellant is an individual deriving income by way of job work besides having share trading transactions through authorized share broker. The appellant filed his return of income on 31.03.2017 declaring total income at Rs.2,26,820/-. Subsequently, the case was selected for scrutiny, the Ld. AO issued several noticesand fixed the case for hearing but there was no response on behalf of the assessee. The Ld. AO passed a best assessment order on 22.12.2017 u/s 144 of the Act and made addition Rs.95,79,978/-on account of profit on share trading and unexplained cash deposits in the bank account. 4. That Feeling Aggrieved by the order dated 22.12.2017 the appellant filed an appeal before the ld. CIT(A). That the appellant has not submitted any written submission during the course of appellate proceedings before Page | 3 ITA No.437/RJT/2024 Dhaval Chandrakant Singala the Ld. CIT(A) that the Ld. CIT(A) has dismissed the appeal of the assessee on the basis of grounds of appeal filed with form 35. 5. Ld. AR for the assessee has submitted that assessee has appointed consultant to represent the case before the lower authority. The consultant neither appeared before the Ld. CIT(A) nor given information about the hearing of the case to the appellant. That the appellant prayed for a one more opportunity of hearing in this case. 6. On the other hand, Ld. Departmental Representative fairly submitted that since the assessment order is passed on the basis of best judgment u/s 144 of the Act and CIT(A) has also dismissed the appeal of the assessee on the basis of record. 7. We have considered the submissions of both the parties and perused the material available on record. We note that the assessee challenged the validity of order of Ld. CIT(A) and filed an appeal before us. We also note despite various opportunities given by the Ld. CIT(A) for hearing the case. We note that before the Ld. CIT(A), the appellant has not offered any explanation regarding estimated profit on share trading and cash deposit in bank. Ld. CIT(A) has passed the impugned order ex-parte and dismissed the appeal of the assessee. The Ld. A.O has passed the order u/s 144 of the Income Tax Act and made addition of Rs.95,79,978/- on account of profit on share trading and unexplained cash deposits in the bank account. We are of the view that an opportunity should be given to the appellant to present his case. Accordingly in the facts and circumstances of the case and in the interest of justice, the impugned order of the Ld. CIT(A) is set aside and the matter is remanded to the record of Ld. A.O for fresh adjudication. We further direct to the appellant Page | 4 ITA No.437/RJT/2024 Dhaval Chandrakant Singala to submit document and support of the return of income before the Ld. AO as when asked for the Ld. AO of the relevant details and explanation as furnished by the assessee. 8. In the result, the appeal of the assessee is Allowed for statistical purposes. Order is pronounced in the open court on 25/11/2024. Sd/- Sd/- (Dr. A.L. SAINI) (DINESH MOHAN SINHA) ACCOUNTANT MEMBER JUDICIALMEMBER Patel, Sr. PS Rajkot True Copy \u001bदनांक/ Date: 25 /11/2024 Copy of the Order forwarded to 1. The Assessee 2. The Respondent 3. The CIT(A) 4. Pr. CIT 5. DR/AR, ITAT, Rajkot 6. Guard File By Order Assistant Registrar/Sr. PS/PS ITAT, Rajkot Date Initial 1. Draft dictated on (dictation sheet is enclosed with main file.) 13.11.24 } PS 2. Draft placed before author 13.11.24 PS 3. Draft proposed & placed before the second member 4. Draft discussed/approved by Second Member. 5. Approved Draft comes to the Sr.PS/PS 6. Kept for pronouncement on 7. File sent to the Bench Clerk 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Draft dictation sheets are attached PS "