DHIRUBHAI RAJABHAI KOLADIYA,AHMEDABAD V. THE INCOME TAX OFFICER, WARD-6(1)(4), AHMEDABAD

ITA 1009/AHD/2024

AI Insights

This case involves an appeal by Dhirubhai Rajabhai Koladiya against the order of the National Faceless Appeal Centre (NFAC), Delhi, which confirmed additions to his income for the assessment year 2017-18. The additions were initially made by the Assessing Officer under sections 143(3) and 154 of the Income Tax Act, citing unexplained cash deposits during the demonetization period. The CIT(A) dismissed Koladiya's appeal ex-parte, leading to his appeal to the ITAT. The ITAT found that the CIT(A) had not adequately addressed the merits of the case and had dismissed the appeal without proper consideration, thus remanding the case back to the CIT(A) for a detailed examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 313976 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B.P. SRIVASTAVA
• Assessee Lawyers: MEHUL K. PATEL
• Keywords: Principle of natural justice; Rectification of order
• Section: 143(3); 142(1); 154

Judgement Text

"THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH Before Dr. BRR Kumar, Vice President And Ms. Suchitra Kamble, Judicial Member Dhirubhai Rajabhai Koladiya, T/F 301-Rajdhani, 2/2, Swaminarayan Colony Rambag, Maninagar, Ahmedabad PAN: ADCPK4969K (Appellant) Vs The ITO, Ward-6(1)(4), Ahmedabad (Respondent) Assessee by: Shri Mehul K. Patel, A.R. Revenue by: Shri B.P. Srivastava, Sr. D.R. Date of hearing : 05-05-2025 Date of pronouncement : 07-05-2025 आदेश/ORDER Per Suchitra Kamble, Judicial Member: This is an appeal filed against the order dated 15-03- 2024 passed by National Faceless Appeal Centre, Delhi for assessment year 2013-14. 2. The grounds of appeal are as under:- “(1) That, on facts, and in law, the Learned CIT(A) has grievously erred in not providing reasonable and sufficient opportunity of hearing and in deciding the appeal by an ex-parte order, and in deciding the appeal u/s 154 of the Act, without waiting for the outcome of appeal filed against order u/s 143(3) of the Act.. (2) That on facts and in law the Learned NFAC-CITIAL has grievously erred in confirming the addition of Rs 52,39,850/- in ITA No. 1009/Ahd/2024 Assessment Year 2017-18 I.T.A No. 1009/Ahd/2024 Dhirubhai Rajabhai Koladiya, A.Y. 2017-08 2 respect of Opening balance of Cash Book made by a rectification order u/s 154 of the Act. (3) That on facts and in law the learned NFAC-CITIA) has grievously erred in assessing the income as per order u/s 143 (3) of the Act and beginning the computation of income at Rs.42,82,390/- which includes addition of Rs 35,00,000/- in respect of cash deposited in appellant's bank account. (4) That on facts, and in law, the learned NFAC-CITIA) has grievously erred in confirming the tax levied u/s 115BBE of the Act in respect of the said additions. (5) The appellant craves leave to add, alter, amend any ground of appeal.” 3. The assessee filed return of income on 20-07-2017 declaring total income at Rs. 7,82,390/-. The assessee derives income from business and house property and other sources. The Assessing Officer observed that the assessee has shown cash balances in books and accounts and cash in hand for the period 2014-15, 2015-16 and 2016-17 for which the Assessing Officer has given the notices u/s. 142(1) of the Act. The assessee submitted the reply and after verifying the same, the Assessing Officer made addition of Rs. 35,00,000/- as cash deposits during demonetization period. Thereafter, the Assessing Officer passed order u/s. 154 dated 02-03-2020 thereby making addition of Rs. 52,39,850/-. 4. Being aggrieved by the order u/s. 154 of the Act, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. I.T.A No. 1009/Ahd/2024 Dhirubhai Rajabhai Koladiya, A.Y. 2017-08 3 5. The ld. A.R. submitted that the CIT(A) has passed ex- parte order and therefore the matter may be remanded back to the file of CIT(A) for proper adjudication on the issues on merit. 6. The ld. D.R. relied upon the order u/s. 154, the assessment order and the order of the CIT(A). The D.R. further submitted that proper opportunity was granted by the CIT(A) to the assessee. 7. We have heard both the parties and perused all the materials available on record. The assessee has filed the adjournment application on two occasions before the CIT(A). The CIT(A) has not dealt with the issue on merit and simply dismissed the appeal of the assessee as ex-parte. Therefore, it will be proper to remand back this matter to the file of the CIT(A) for proper adjudication of the issues on merit. The assessee is directed to pay Rs. 10,000/- to the Income Tax Department within the period of 15 days from the date of receipt of this order. The assessee be given opportunity by following the principles of natural justice. 8. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 07-05-2025 Sd/- Sd/- (Dr. BRR Kumar) (Suchitra Kamble) Vice President Judicial Member Ahmedabad : Dated 07/05/2025 I.T.A No. 1009/Ahd/2024 Dhirubhai Rajabhai Koladiya, A.Y. 2017-08 4 आदेश क\u0006 \u0007\bत ल प अ\u000fे षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील\u0012य अ\u0013धकरण, अहमदाबाद "