Ushma Chandrakant Patel, Vadodara V. The DCIT (Int. Taxa), Vadodara

ITA 100/AHD/2021

AI Insights

The case involves Ushma Chandrakant Patel, the appellant, contesting an assessment order under Section 144 of the Income Tax Act, 1961, for the assessment year 2012-13. The appellant argued that the reassessment order was without jurisdiction as no notice under Section 148 was served. The Assessing Officer had made an addition of Rs. 35,07,952 to the appellant's income, which was confirmed by the CIT(A). The appellant contended that the addition was based on suspicion and without proper inquiry or opportunity to be heard. The Tribunal found merit in the appellant's request for remand due to the submission of additional evidences that were not previously considered by the Assessing Officer or CIT(A).

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299953 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-02-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 30-01-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 17-05-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: HARSHIL PATEL
• Keywords: Unexplained investment; Principle of natural justice
• Section: 69; 148; 271(1)(c); 144; 142(1); 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I .T .A . No .1 00 /A h d / 20 21 ( A s se ss m e nt Y e a r : 20 12- 13 ) Us h m a C h an d r a ka n t P at el 18, W in ds or Wa y, C a m p H ill , PA B - 1 , Pr a m uk h Sw a m i N a ga r Pa r t I I C h ha ni J a k a tn a ta , T P - 1 3, Va do dar a V s . D C I T I nt e r n a tio n a l Ta xa t ion , V a do da r a [ P AN N o. FF TP P9 4 38 C ] (Appellant) .. (Respondent) Appellant by : Shri Harshil Patel, A.R. Respondent by: Shri Ramesh Kumar, JCIT D a t e of H ea r i ng 31.01.2023 D a t e of P r o no u n ce me nt 10.02.2023 O R D E R The appeal filed by the assessee is against the order passed by the Ld. CIT(Appeals)-13, Ahmedabad on 23.03.2021 for A.Y. 2012-13. 2. The grounds of appeal raised by the assessee are as under: “1.1 Assessment proceedings U/s. 144 are not in accordance with law and not valid. 2.1 On the facts and circumstances of the case the learned A.O. has wrongly invoked the provision of Section 144 of Income Tax Act, 1961 as appellant has not received notice u/s. 148 of the act. AO did not serve notice U/s. 148 hence reassessment order is without jurisdiction. 2.2 Addition made by AO is on account of sale of Immovable property whereas CIT(a) has confirmed addition on account of purchase of immovable property Revenue is therefore in doubt about addition hence such addition cannot be sustained being based on suspicion conjecture and surmise. 2.3 Learned A O and CIT(A) has ignored even Bank payment of the property without any inquiry or opportunity of being heard. CIT(A) did not appreciate the purchase deed and bank statement before confirming addition U/s. 69 under unexplained investment. 2.4 In view of above it is requested to delate the addition. 3. YOUR APPELLANT REQUEST LEAVE TO ADD OR AMEND TO SUBSTITUTE ALL OR ANY OF THE GROUND OF APPEAL AT OR BEFORE THE HEARING OF APPEAL.” ITA No. 100/Ahd/2021 Ushma Chandrakant Patel vs. DCIT Asst.Year–2012-13 - 2 - 3. After recording the reasons to believe the escapement of income and approval of the PCIT, the notice under Section 148 was issued on 28.03.2019 which was received unserved. The ITO, Ward-1(2)(5), Vadodara transferred the case to the International Taxation, Circle Vadodara on 05.08.2019. The Assessing Officer issued various notices under Section 142(1) and even initiated the penalty proceedings under Section 271(1)(b) of the Act and issued show-cause notice dated 28.11.2019. However, neither any return of income was filed nor any submissions was made before the Assessing Officer. The Assessing Officer observed that during the assessment year the assessee sold an immovable property which was valued at Rs. 35,07,952/- by the Office of SRO and in absence of any explanations, the Assessing Officer completed the assessment order under Section 144 dated 12.12.2019 thereby making addition of Rs. 35,07,952/- and initiated penalty under Section 271(1)(b) and 271(1)(c) of the Act. 4. Being aggrieved by the assessment order the assessee filed appeal before the CIT(A). The CIT(A) dismiss the appeal of the assessee. 5. The Ld. A.R. submitted that the additional evidence could not be filed before the CIT(A) & Assessing Officer, therefore, the matter may be remanded back to the file of the Assessing Officer for proper adjudication. 6. The Ld. D.R. relied upon the assessment order and the order of the CIT(A). 7. Heard both the parties and perused all the relevant material available on record. After perusal of the records of the appeal memo it is found that Authorized Representative of the assessee has filed additional evidences vide ITA No. 100/Ahd/2021 Ushma Chandrakant Patel vs. DCIT Asst.Year–2012-13 - 3 - application dated 29.08.2022 (25.08.2022) before the Tribunal. It appears that all these documents were not before the Assessing Officer as well as before the CIT(A) and the reasons explained by the assessee for not producing these documents appears to be genuine. Therefore, it will be appropriate to remand back the entire issue to the file of the Assessing Officer for proper adjudication after taking cognizance of the evidences filed before us. The additional evidences are admitted and matter is remanded back to the file of the Assessing Officer. Needless to say, the assessee be given opportunity of hearing by following principle of natural justice. 8. In result, the appeal of the assessee is partly allowed for statistical purposes. This Order pronounced in Open Court on 10/02/2023 Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER Ahmedabad; Dated 10/02/2023 TANMAY, Sr. PS TRUE COPY आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं धत आयकर आय ु त / Concerned CIT 4. आयकर आय ु त(अपील) / The CIT(A)- 5. वभागीय त न ध, आयकर अपील!य अ धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड' फाईल / Guard file. आदेशान ु सार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ धकरण, अहमदाबाद / ITAT, Ahmedabad