HITENDRASINH MAHIDA,BORSAD V. ACIT, CIRCLE-1(3),VADODARA, VADODARA

ITA 845/AHD/2025

AI Insights

The case involves three appeals filed by Sanjaysinh Mahida and Hitendrasinh Mahida against the orders of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre for the Assessment Years 2016-17 & 2017-18. The appeals were consolidated due to identical facts and issues. The main contention was the failure of the CIT(A) to provide an adequate opportunity of being heard and the reliance on the assessment order without proper appreciation of facts. The assessee argued that the CIT(A) erred in confirming the addition of Rs.28,09,000 under section 69A of the Income Tax Act, 1961, without understanding the true nature of the transaction, particularly during the demonetization period when cash was deposited into bank accounts.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714283 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRATEEK SHARMA
• Assessee Lawyers: A.K KHANDELWAL
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER I.T.A. Nos.844 & 887/Ahd/2025 (Assessment Years: 2016-17 & 2017-18) SanjaySinh Mahida, Nr. Tekrabhag Ni Daheli, Devavanta Sojitra, Tala Deva, Talpad, Sojitra, Petlad-387340. [PAN :AUYPM3324 P] Vs. The Income Tax Officer, Ward-1(3)(1), Petlad. And I.T.A. No.845/Ahd/2025 (Assessment Year: 2017-18) Hitendrasinh Mahida, 1308 and 1309, Near Railway Crossing, Bhadran Road, Borsad, Dist. Anand, Ananad-388540. [PAN :AUYPM3325 N] Vs. The Assistant Commissioner of Income Tax, Circle-1(3), Vadodara. (Appellant) .. (Respondent) Appellant by : Shri A.K Khandelwal, AR Respondent by: Shri Prateek Sharma, Sr DR Date of Hearing 06.08.2025 Date of Pronouncement 07.08.2025 O R D E R PER BENCH : Delay Condoned The captioned three appeals are filed by the Assessee against the separate orders dated 26.10.2023 & 22.12.2023 passed by the Printed from counselvise.com ITA No.844/Ahd/2025 with two others Sanjaysinh Mahida Vs. ITO Asst. Year : 2016-17 - 2– Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre relating to the Assessment Years 2016-17 & 2017-18. The facts involved in these three appeals are identical, hence the matters were heard together and are being disposed of vide this common order for the sake of convenience. We will take ITA No.845/Ahd/2025 for AY 2017-18 as lead case for the purpose of adjudication. ITA No.845/Ahd/2025 for AY 2017-18 2. The assessee has raised the following grounds of appeals: 1. That the Hon'ble CIT(A) failed to provide adequate and effective opportunity of being heard and dismissed the appeal for non- prosecution and thus violated the principles of natural justice. 2. The Hon'ble CIT(A) did not decide the appeal on merits and totally relied upon the assessment order and thus decision is hot based on proper appreciation of facts. 3. On facts and circumstances of the case the Hon. CIT(A) has gravely erred in confirming addition of Rs.28,09,000/ under section 69A of income tax act, 1961 without understanding the true nature of transaction and also without properly appreciating the facts of this case. 4. On facts and circumstances of the case the Hon. CIT (A) ignored the fact that applicant has withdrawn cash from bank. capital from firm and the same were deposited during Demonetization period into bank accounts with SBI and Central Bank of India. Interestingly one of bank account is belong to partnership firm in which applicant is partner. 3. On going through the record, we find that the notices of hearing u/s.250 were issued by the Ld.CIT(A) on 16.01.2021, 21.08.2023, Printed from counselvise.com ITA No.844/Ahd/2025 with two others Sanjaysinh Mahida Vs. ITO Asst. Year : 2016-17 - 3– 17.10.2023, 17.11.2023, & 05.12.2023 requesting the assessee to submit certain details/clarification/ explanation regarding source of cash deposit. Since the assessee remained non-compliant with the notices issued and failed to submit the relevant documents before the Ld.CIT(A), the appeal of the assessee was dismissed. Before us the Ld. Counsel for the assessee prayed that, given an opportunity, due compliance will be made and all the details/clarification/explanation would be provided to the revenue authorities. Since the primary adjudication of ground of appeal has not been taken by Ld. CIT(A), in the interest of justice, the matter is remanded to the Ld.CIT(A) for conducting assessment de-novo. The assessee shall submit all the relevant documents and comply with the notices issued by the Revenue authorities without seeking any unnecessary adjournments. ITA Nos. 844 & 887/Ahd/2025 for AYs 2016-17 & 2017-18. 4. The facts involved in these two appeals are identical to those in ITA No. 845/Ahd/2025 for A.Y. 2017-18, which we have decided in favour of the assessee for statistical purposes in the preceding paragraphs. Therefore, the decision taken in ITA No. 845/Ahd/2025 for A.Y. 2017-18 shall apply mutatis mutandis to ITA Nos. 844 & 887/Ahd/2025 for A.Ys. 2016-17 & 2017-18 as well. Accordingly, these two appeals of the assessee are also allowed for statistical purposes. Printed from counselvise.com ITA No.844/Ahd/2025 with two others Sanjaysinh Mahida Vs. ITO Asst. Year : 2016-17 - 4– 5. In the combined result, the appeals filed by the assessee are allowed for statistical purposes. The order is pronounced in the open Court on 07.08.2025. - Sd/- Sd/- (SIDDHARTHA NAUTIYAl) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 07.08.2025 MV आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "