GHANSHYAM PRAGJIBHAI NAKRANI,AHMEDABAD V. THE ITO, WARD-1, INTL.TAXN., AHMEDABAD

ITA 1500/AHD/2024

AI Insights

The case involves Ghanshyam Pragjibhai Nakrani, an NRI, who appealed against the order of the Commissioner of Income Tax (International Taxation) for the Assessment Year 2022-23. The primary contention was the non-consideration of detailed submissions made before the draft assessment order under section 144C(1) of the Income Tax Act, and subsequent erroneous additions and penalty proceedings initiated by the Assessing Officer. The Dispute Resolution Panel had earlier rejected the assessee's application citing a delay in filing. The Tribunal found merit in the assessee's arguments, particularly regarding the procedural lapses and the need for a comprehensive review of the submissions made.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 25521 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2022-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ADJOURNMENT APPLICATION
• Assessee Lawyers: MEHUL THAKKAR
• Keywords: Cost of acquisition; Initiation of penalty proceedings
• Section: 69A; 144C

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE DR.BRR KUMAR, VICE PRESIDENT & SHRI TR SENTHIL KUMAR, JUDICIAL MEMBER I.T.A. No.1500/Ahd/2024 (Assessment Year: 2022-23) Ghanshyam Pragjibhai Nakrani, 37, Malabar Hill Bunglow, Opp. Sai Kutir Bunglows, MG Road, Nikol, Ahmedabad-382350. Vs. The Income Tax Officer, Ward-1, International Taxation, Ahmedabad. [PAN No.ABXPN8061G] (Appellant) .. (Respondent) Appellant by : Shri Mehul Thakkar, AR Respondent by: Adjournment Application Date of Hearing 02.01.2025 Date of Pronouncement 03.01.2025 O R D E R PER: DR. BRR KUMAR, VICE PRESIDENT: This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax(International Taxation), vide order dated 07.06.2024 passed for the Assessment Year 2022-23. 2. The Assessee has taken the following grounds of appeal:- 1. The Ld. A.O. has erred in law and on facts in not considering the detailed submission made on 23.03.2024, before passing the draft assessment order under section 144C(1) of the Income Tax Act. ITA No.1500/Ahd/2024 Asst.Year –2022-23 - 2– 2. The Dispute Resolution Panel has erred in law and on facts in rejecting the application before it on the ground that the application before it was barred by limitation. 3. The Ld. A.O. has erred in law and on facts in making high pitch addition amounting Rs. 88,43,190, U/s. 69A of the Act despite the fact that the detailed explanation/submission was made in this regard on 23.03.2024. 4. The Ld. A.O. has erred in law and on facts in making addition of Rs. 12,00,000/- on account of LTCG being the sale consideration of the property without granting deduction towards cost of acquisition and cost of improvement, if any. 5. The Ld. A.O. has erred in law and on facts in initiation of penalty proceedings under section 271AAC(1) and 270A of Income Tax Act, 1961. 6. The assessee 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. Heard the argument of both the parties and perused the facts on record. The issue to be examined by the revenue pertains to the sources of the loan received by the assessee. The assessee is an NRI could not submit the details of bank account before the Assessing Officer to prove the credits. In this case, the draft order has been passed by the Assessing Officer on 23.03.2024. The Ld.DRP, rejected the application of the assessee seeking direction on the section 144C on the grounds that the assessee has filed objection with the delay of one day. 4. It is fairly agreeable that the matter needs to be examined afresh by the Assessing Officer, hence in the interest of justice the issue is remanded the Assessing Officer to initiate assessment proceedings de-novo. ITA No.1500/Ahd/2024 Asst.Year –2022-23 - 3– 5. In the result, the appeal filed by the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 03.01.2025 Sd/- Sd/- (TR SENTHIL KUMAR) (DR. BRR KUMAR) JUDICIAL MEMBER VICE PRESIDENT (True Copy) Ahmedabad; Dated 03.01.2025 TRUE COPY आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant 2. ᮧ᭜यथᱮ / The Respondent. 3. संबंिधत आयकर आयुᲦ / Concerned CIT 4. आयकर आयुᲦ(अपील) / The CIT(A)- 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडᭅ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad "