The ITO, Ward-1, Gandhinagar V. Shri Ashokkumar Bhavanbhai Patel, Gandhinagar

ITA 1426/AHD/2019

AI Insights

The case involves cross-appeals by the Income Tax Officer, Ward-1, Gandhinagar, and Shri Ashokkumar Bhavanbhai Patel, concerning reassessment orders for three consecutive assessment years. The reassessments were initiated under section 147 of the Income Tax Act, 1961, due to alleged unexplained cash deposits amounting to Rs. 15,80,000 in the assessee's bank account. The Tribunal considered the legal arguments presented by both parties, focusing on the validity of the reassessment and the subsequent additions made to the assessee's income. The Tribunal's decision aimed to clarify the legal standing of the reassessment process and its implications on the assessed income.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133570 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 5 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-03-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 13-12-2022
• Assessment Year: 2011-2012
• Appeal Filed On: 10-09-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reassessment proceedings
• Section: 147

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठअहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठ ‘C’ अहमदाबाद। अहमदाबाद।अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER ITA No.1425 to 1427/Ahd/2019 Assessment Year :2010-11, 2011-12 and 2012-13 ITO, Ward-1 Gandhinagar. Vs. Shri Ashokkumar Bhavanbhai Patel 4-3. Sector 8B Gandhinagar. PAN : ANXPP 2639 J ITA No.1461 to 1463/Ahd/2019 Assessment Year : 2010-11, 2011-12 and 2012-13 Shri Ashokkumar Bhavanbhai Patel 4-3. Sector 8B Gandhinagar. Vs. ITO, Ward-1 Gandhinagar. (Applicant) (Responent) Assesseeby : Shri Rajesh Shah, AR Revenue by : Shri A.P. Singh, CIT & Pooja Parekh, Sr.DR स ु नवाई क तार ख/D a t e o f H e a r i n g : 1 4 / 1 2 / 2 0 2 2 घोषणा क तार ख /D a t e o f P r o n o u n c e m e n t : 0 6 / 0 3 / 2 0 2 3 आदेश/O R D E R PER BENCH These are cross-appeals filed by the Revenue and assessee against orders passed by the Commissioner of Income-tax (Appeals), Gandhinagar, Ahmedabad [hereinafter referred to as “the ld.CIT(A)”] dated 1.7.2019, 11-7-2019 and 12-7-2019, under section 250(6)of the Income Tax Act, 1961 [hereinafter referred to as "the Act" for short] pertaining to the Asst.Years 2010-11 to 2012-13 respectively. ITA No.1425 to 1427/Ahd/2019 ITA No.1461 to 1463/Ahd/2019 2 2. It was pointed out that all the appeals arose from orders passed in reassessment proceedings initiated on the assessee in the impugned years ,as per the provision of section 147 of the Act, which reassessment proceedings were initiated for identical reasons, being escapement of income on account of cash found deposited in the bank account of the assessee. That all assessments resulted in treating the cash deposits as unexplained and thus income of the assessee from undisclosed sources alongwith several other additions made. The ld.counsel for the assessee contended that the facts and circumstances leading to the additions in all the cases were identical, and therefore, all the appeals be taken up together for hearing and adjudication. The ld.DR fairly agreed to this, and therefore all the appeals were heard together and are being disposed of by this common consolidated order. 3. The ld.counsel for the assessee pointed out that in the appeals filed by the assessee for each of the assessment years involved in ITA No.1461 to 1463/Ahd/2019, the assessee has challenged the validity of the assessment framed under section 147 of the Act. Therefore, the appeals of the assessee were taken up first for hearing. ITA No.1461 to 1463/Ahd/2019,Assessees Appeals A.Y 2010-11 to 2012-13 4. The assessee has in all the appeals raised identical legal ground challenging validity of the assessment framed under section 147 of the Act in ground no.1. For the sake of brevity and convenience, we arereproducingGround No.1 raised by the assessee in ITA No.1461/Ahd/2014for A.Y 2010-11as under: ITA No.1425 to 1427/Ahd/2019 ITA No.1461 to 1463/Ahd/2019 3 “l. That the reopening of the assessment u/s 147 of the I. T. Act to verify cash deposits amounting to Rs. 15,80,000/- with HDFC Bank which the assessee had not offered as an income for taxation in the ITR is absolutely bad-in-law and also because every receipt is not necessarily an income as per the judicial decisions, the re-opening of the assessment and the consequential assessment order passed be cancelled.” 5. The ld.counsel for the assessee contended that his arguments against validity of assessment framed was that reasons recorded by the AO for reopening of the case of the assessee could not have been lead to belief of escapement of income at all. In this regard, he drew our attention to reasons recorded by the AO in each of the assessment years. Taking us first to PB page no.48 filed before us, dated 1.4.2021 which was reasons recorded by the AO for reopening of the case of the assessee pertaining to Asst.Year 2010-11. He then took us to PB Page No.50 containing reasons for reopening of the assessment for Asst.Year 2011-12 and PB Page No.52 containing the reasons recorded for reopening of the assessment for Asst.Year 2012-13. They read as under: ITA No.1425 to 1427/Ahd/2019 ITA No.1461 to 1463/Ahd/2019 4 ERROR: stackunderflow OFFENDING COMMAND: ~ STACK: