INCOME-TAX OFFICER, PALANPUR V. SIDDHARTH SATISHBHAI JOSHI, GUJARAT

ITA 1324/AHD/2024

AI Insights

The case involves an appeal by the Income Tax Officer, Palanpur against Siddharth Satishbhai Joshi concerning the Assessment Year 2014-15. The Revenue challenged the order of the Commissioner of Income-tax (Appeals), which quashed the assessment order due to the non-issuance of a notice under Section 143(2) of the Income Tax Act. The Assessing Officer had initiated reassessment proceedings under Section 147, believing that income had escaped assessment. However, it was found that the return was processed under Section 143(3), not Section 143(1) as claimed by the Assessing Officer, leading to the quashing of the reassessment order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 783526 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-11-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2014-2015
• Appeal Filed On: 05-07-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAMESHWAR P. MEENA
• Assessee Lawyers: M.S. CHHAJED
• Keywords: Unexplained investment; Reason to believe
• Section: 148; 143(3); 2

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER I.T.A. No. 1324/Ahd/2024 (Assessment Year: 2014-15) Income-Tax Officer, Palanpur Vs. Siddharth Satishbhai Joshi, Ranpur Ugmanavas, Deesa, Gujarat-385535 [PAN : AMZPJ 9064 E] (Appellant) .. (Respondent) Assessee by : Shri M.S. Chhajed, AR Revenue by: Shri Rameshwar P. Meena, Sr DR Date of Hearing 04.11.2025 Date of Pronouncement 04.11.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT : This appeal has been filed by the Revenue against the order passed by the Ld. Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as \"CIT(A)\" for short), dated 08.05.2024, under Section 250 of the Income-tax Act, 1961 [hereinafter referred to as \"the Act\" for short], for Assessment Year (AY) 2014-15. 2. The Revenue has raised the following grounds:- “(a) The Ld. CIT(A) has erred in law and on facts in quashing the assessment order passed u/s 143(3) r.w.s. 147 r.w.s. 144B of IT Act on the basis of non- issuance of notice u/s 143(2) of the IT Act, without appreciating the facts that the assessee has not filed return of income within prescribed time limit in response to notice u/s 148 of the IT Act. (b) The Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs.2,19,17,017/- made by AO on account of unexplained investment in land.” Printed from counselvise.com ITA No. 1324/Ahd/2024 ITO Vs. Siddharth Satishbhai Joshi Asst. Year : 2014-15 - 2– 3. The reasons recorded by the Assessing Officer for initiating proceedings u/s 147 of the Act are reproduced below: “……. 4. Basis of reason to believe: As discussed above the assessee has disclosed only a meager income in the return and also made huge cash deposit in the bank as discussed above, I have reason to believe that income chargeable to tax has escaped assessment to the extent of on money and sales consideration paid i.e. Rs.2,19,17,017/- 5. As per above discussion, I have reason to believe that income chargeable to tax has escaped assessment for A.Y. 2014-15 and intend to reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to the notice subsequently in the course of the proceedings under this section. 6. In this case a return of income was filed for the year under consideration but no scrutiny assessment u/s 143(3) of the act was made and the return of income was only processed u/s 143(1) of the act. In view of the above, provisions of clause (b) of explanation 2 to section 147 are applicable to facts of this case and the assessment year under consideration is deemed to be a case where income chargeable to tax has escaped assessment. 7. In this case more than four years have lapsed from the end of assessment year under consideration. Hence necessary sanction to issue notice u/s 148 has been obtained separately from Principal Commissioner of Income tax as per provisions of section 151 of the Act.” 4. The Assessing Officer held that the return of income was processed under Section 143(1) of the Act, whereas the facts on record reveal that the return was processed under Section 143(3) of the Act. The ld. Counsel for the assessee also submitted that the assessment order dated 14.12.2016 had been passed under Section 143(3) of the Act, and the Ld. DR could not dispute this fact on record. Printed from counselvise.com ITA No. 1324/Ahd/2024 ITO Vs. Siddharth Satishbhai Joshi Asst. Year : 2014-15 - 3– Thus, it is evident from the record that the Assessing Officer had not applied his mind to the facts of the case, which renders the reassessment order void and ab initio. Accordingly, the reassessment order is hereby quashed. 5. In the result, the appeal of the Revenue is dismissed. The order is dictated and pronounced in the open Court on 04.11.2025 Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Ahmedabad; Dated 04/11/2025 **btk आदेश की \bितिलिप अ\u000eेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u0007 / The Appellant 2. \b थ\u0007 / The Respondent. 3. संबंिधत आयकर आयु\u0015 / Concerned CIT 4. आयकर आयु\u0015(अपील) / The CIT(A)- 5. िवभागीय \bितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation ……dictated in the open court on 04.11.2025.. 2. Date on which the typed draft is placed before the Dictating Member …….04.11.2025….. 3. Other Member……….04.11.2025………… 4. Date on which the approved draft comes to the Sr.P.S./P.S …….04.11.2025….………. 5. Date on which the fair order is placed before the Dictating Member for pronouncement ….04.11.2025…. 6. Date on which the fair order comes back to the Sr.P.S./P.S ……..04.11.2025………………. 7. Date on which the file goes to the Bench Clerk ….04.11.2025…. 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order 10. Date of Dispatch of the Order…………………………………… Printed from counselvise.com "