HITESH KANABHAI BHUTIYA,MANGROL V. ITO, WARD3, JUNAGAD, JUNAGADH

ITA 505/RJT/2024

AI Insights

The case involves Hitesh Kanabhai Bhutiya, an individual engaged in trading shares and derivatives, who appealed against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal was directed against the reassessment order under sections 147 and 144 of the Income-tax Act, 1961, for the Assessment Year 2012-13, which added Rs. 52,81,274 as unexplained cash deposit to the appellant's income. The Tribunal found that the appellant was not given adequate opportunity to present his case at the earlier stages and thus remanded the case for a fresh assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 473083 (ITAT-RAJKOT)
• Duration Of Justice: 3 month(s) 22 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: 21-10-2024
• Assessment Year: 2012-2013
• Appeal Filed On: 03-08-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIMANYU SINGH YADAV
• Assessee Lawyers: MEHUL RANPURA
• Keywords: Reassessment proceedings
• Section: 147; 148; 144

Judgement Text

" Page | 1 ITA No.505/RJT/2024 Hitesh Kanabhai Bhutiya CIN 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.505/RJT/2024 (\u000bनधा\u000fरणवष\u000f / Assessment Year: (2012-13) (Physical Hearing) Shri Hitesh KanabhaiBhutiya Nr. Hanuman Mandir, Mandvi Gate Porbandar Road, Mangrol Dist. Junagadh-362225 Vs. ITO, Ward -1, Aayakar Bhavan, Kalva chowk Junagadh \u0013थायीलेखासं./जीआइआरसं./PAN/GIR No.: AJKPB0677K (Assessee) (Respondent) Assessee by : Shri Mehul Ranpura, AR Respondent by : Shri Abhimanyu Singh Yadav, Sr.DR Date of Hearing : 21/10/2024 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 31.05.2024, u/s 147 r.w.s 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’), dated 26.11.2019 for Assessment Year 2012-13. 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.505/RJT/2024 Hitesh Kanabhai Bhutiya 2. The Ld. Commissioner of Income Tax (Appels), 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 without allowing adequate opportunity of being heard. 3.The Ld. CIT(A) erred on facts as also in law in confirming the addition of Rs.52,81,274/- being cash deposited into bank accounts. The addition confirmed is unjustified and uncalled for which may kindly be deleted. 4. Your honors appellant craves leave 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 and engaged in the business of trading in shares and derivatives of securities commodities through stock exchange. He has also derived brokerage income for trading in share for his referred clients. Return of income filed on 15.04.2013 declaring total income of Rs.1,79,000/-. Ld.AO initiated reassessment proceedings u/s 147 of the Act by issuing notice u/s 148 of the Act dated 26.03.2019. Thereafter the AO passed an order of assessment on 26.11.2019 on total income of Rs.54,60,270/- that there is an addition of Rs.52,81,274/- on account of unexplained cash deposit. 4. That the assessee filed an appeal against the order of assessment before the CIT(A). That Ld. CIT(A) dismissed the appeal on dated 31.05.2024 by passing an order that appeal of the appellant is not maintainable. 5. That the appellant challenged the legality and validity of impugned order of Ld. CIT(A) by filing of appeal before us. 6. Ld. AR for the assessee prayed that one more opportunity be given to explain the case before the Ld. AO. Since the assessee was not given due opportunity to explain the case. Page | 3 ITA No.505/RJT/2024 Hitesh Kanabhai Bhutiya 7. On the other hand, Ld. Departmental Representative fairly submitted that since the assessment order is passed on the basis of Best judgment u/s 144/147 of the Act and CIT(A) has also dismissed the appeal of the assessee as not maintainable. However, the Ld. Sr. DR has not objected to the prayer of the appellant. 8. We have considered the submissions of both the parties and perused the impugned orders of lower authorities. We note that the case of the appellant was reopened on the ground that the appellant has deposited an amount of Rs.52,81,274/- in various bank of cash credited in the account that the appellant has also high value cheque in favour of MTL Shar Master Capital Kunvarji finstock Pvt. Ltd. there are also RTGS debits and high value cash withdrawals in the account the assessee has huge transaction in his bank accounts have not been explained by the assessee. The Ld. A.O has passed the order u/s 144 of the Income Tax Act and made addition at Rs.52,81,274/- on account of unexplained cash deposit. Despite various opportunities given by the Ld. CIT(A). The appellant has not submitted document in compliance to notice by Ld. CIT(A). Ld. CIT(A) has dismissed the appeal of the appellant. We further note that LD. CIT(A) has not disposed of the appeal on merit. Therefore, we are of the view that one more 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 to submit document and support of the return of income before the Ld. AO as an when asked for the Ld. AO of the relevant details and explanation as furnished by the assessee. Page | 4 ITA No.505/RJT/2024 Hitesh Kanabhai Bhutiya 7. 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 "