Jasubhai Narjibhai Desai, Idar V. The ITO, Ward-2, Himmatnagar

ITA 11/AHD/2022

AI Insights

The case involves Jasubhai Narjibhai Desai, an individual deriving income from his position as Principal at Shree J.M. Tanna High School, who appealed against the order of the CIT(A), National Faceless Appeal Centre, Delhi. The appeal was related to the assessment year 2016-17, where the Assessing Officer had added Rs. 9,31,545 as income from unexplained cash deposits in the assessee's bank account. The CIT(A) upheld this addition, leading to the current appeal. The Tribunal found that the assessee was not given a fair opportunity to present additional evidence regarding the source of these deposits, which were claimed to be from the sale of agricultural products. Consequently, the Tribunal decided to remand the matter back to the CIT(A) for a fresh examination.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299954 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-01-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 13-12-2022
• Assessment Year: 2016-2017
• Appeal Filed On: 04-01-2022
• Laws Referred To: Income Tax Rules, 1962
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Additional evidence
• Section: 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I .T .A . No .1 1/ A h d / 2 02 2 ( A s se ss m e nt Y e a r : 20 16- 17 ) Ja s ub h a i N a r j ibh ai D es a i Sh r e e J . M. T a n na H i gh Sc ho ol , Ka di ya d r a , I da r , G uj a r a t- 38 34 4 0 V s . I T O War d - 2 , H i mm a t na ga r [ P AN N o. A A MP P 2 1 7 8A ] (Appellant) .. (Respondent) Appellant by : Shri Pritesh Shah, A.R. Respondent by: Shri Alpesh Parmar, Sr. D.R. D a t e of H ea r i ng 14.12.2022 D a t e of P r o no u n ce me nt 18.01.2023 O R D E R The appeal filed by the assessee is against the order passed by the Ld. CIT(Appeals), National Faceless Appeal Centre (in short “NFAC”), Delhi on 03.08.2021 for A.Y. 2016-17. 2. The grounds of appeal raised by the assessee are as under: “1. The learned CIT(A) erred in law and on facts in rejecting the additional evidences submitted under Rule 46A of the Income Tax Rules, 1962, submitted during the course of appellate proceedings, such evidences are requested to be admitted. 2. The learned CIT(A) erred in law and on facts in confirming the addition of cash deposited to the bank amounting to Rs. 9,31,545/- made by the Assessing Officer, such addition is requested to be deleted. Your appellant prays for leave to add, to alter and / or to amend the above ground before the final hearing of the appeal.” 3. The assessee is an individual and derives income from salary as Principal in the High School. The return of income for A.Y. 2016-17 was filed on 21.07.2016 showing total income of Rs. 3,48,210/-. During the year under consideration, the Assessing Officer observed that the assessee deposited in cash of Rs. 15,96,000/- in his bank saving account of State Bank of India. The assessee failed to give satisfactory reply and therefore, ITA No. 11/Ahd/2022 Jasubhai Narjibhai Desai vs. ITO Asst.Year–2016-17 - 2 - show-cause notice was issued. The assessee thereafter replied the show- cause notice and submitted various agricultural bills. After taking into account the evidences the Assessing Officer made addition of Rs. 9,31,545/- as cash deposits. 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 assessee filed additional evidences before the CIT(A) which was rejected. The Ld. A.R. submitted that the assessee already supplied the source of cash deposits to bank which were the sale of agricultural products being sales vouchers of sale of agricultural products in cash. The Ld. A.R. submitted that the Assessing Officer at no point of time ask the assessee for further proof for affidavit in respect of those vouchers produce during the assessment proceedings related to agricultural products and sales thereof. The Ld. A.R. submitted that the CIT(A) should have take cognizance of the additional evidences. 6. The Ld. D.R. relied upon the order of the CIT(A) and the assessment order. 7. Heard both the parties and perused all the relevant material available on record. It is pertinent to note that the assessee was not given opportunity in respect of the vouchers produce relating to agricultural products. The additional evidences produce by the assessee before the CIT(A) was rejected only on the ground that sufficient opportunities were given during the course of assessment proceedings. But it appears that after producing ITA No. 11/Ahd/2022 Jasubhai Narjibhai Desai vs. ITO Asst.Year–2016-17 - 3 - evidences before the Assessing Officer the assessee was never granted opportunity of hearing. Therefore, it will be appropriate to admit the additional evidences and remand back the issue contested by the assessee to the file of the CIT(A). Needless to say, the assessee be given opportunity of hearing by following principles of natural justice. 8. In the result, the appeal of the assessee is partly allowed for statistical purpose. This Order pronounced in Open Court on 18/01/2023 Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER Ahmedabad; Dated 18/01/2023 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 1. Date of dictation 16.01.2023 2. Date on which the type draft is placed before the Dictating Member 16.01.2023 3. Other Member..................... 4. Date on which the approved draft comes to the Sr.P.S./P.S .01.2023 5. Date on which the fair order is placed before the Dictating Member for pronouncement .01.2023 6. Date on which the fair order comes back to the Sr.P.S./P.S 18.01.2023 7. Date on which the file goes to the Bench Clerk 18.01.2023 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 Despatch of the Order..........................................