Vishal Chandubhai patel, Surat V. Income Tax Officer, Ward2(2)(5), Surat

ITA 168/SRT/2022

AI Insights

This case involves an appeal by Vishal Chandubhai Patel against the order of the Commissioner of Income Tax (Appeals)-4, Surat, which confirmed additions made by the Assessing Officer under sections 143(3) rws 147 and 69A of the Income Tax Act. The additions pertained to undisclosed sources of income amounting to Rs. 31,23,439, which were allegedly deposited in the assessee's bank account. The primary contention of the assessee was the lack of a fair hearing, as the orders were passed ex parte. The Tribunal found merit in the assessee's arguments and restored the matter to the CIT(A) for a fresh decision, emphasizing the need for a fair hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134680 (ITAT-SURAT)
• Duration Of Justice: 7 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 01-01-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 29-05-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 69A

Judgement Text

आयकर अपीलीय अिधकरण, सुरत Ɋायपीठ, सुरत IN THE INCOME TAX APPELLATE TRIBUNAL, “SMC BENCH” SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER आ.अ.सं./ITA No.168/SRT/2022 (AY 202-13) (Hearing in virtual Court) Vishal Chandubhai Patel, 1/83 TPS, Timba-1, Kamrej, Surat-394330 Ph. 9099038121 Email: [e-mail] PAN No: BNCPP 6714 P Vs Income tax Officer, Ward- 2(2)(5), Aayakar Bhawan, Majura Gate, Surat-395001 अपीलाथŎ/Appellant ŮȑथŎ /Respondent िनधाŊįरती की ओर से /Assessee by Shri Chetan Agarwal, C.A राजˢ की ओर से /Revenue by Shri Vinod Kumar, Sr-DR सुनवाई की तारीख/Date of hearing 02.01.2023 उद्घोषणा की तारीख/Date of pronouncement 02.01.2023 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by assessee is directed against the order of learned Commissioner of Income Tax(Appeals)-4, Surat [for short to as “Ld. CIT(A)”] dated 27.03.2022 for assessment year 2012-13, which in turn arises out assessment order passed by Assessing Officer under section 143(3) rws 147 of the Income Tax Act, (Act) dated 02.12.2019. The assessee has raised the following grounds of appeal:- “1. The Ld. CIT(A) erred in law as well as on facts in confirming an addition of Rs. 20,23,439/- being cash deposited in bank and Rs. 11,00,000/- being time deposit in bank u/s 69A of the Act without giving an effective opportunity of hearing and in passing ex-party order.. ITA No.168/SRT/2022 (AY 202-13) Vishal Chandulal Patel 2 2. At the outset of hearing, Ld. Authorized Representative (Ld.AR) for the assessee submits that Ld. CIT(A) passed the impugned ex parte order without giving fair and reasonable opportunities of hearing to the assessee. The Ld. CIT(A) in para-5.7 of impugned order has recorded that despite giving final opportunity no compliance was made on the part of assessee. The Ld. CIT(A) finally dismissed the appeal of assessee without adjudicating the various grounds of appeal as per mandate of Section 250(6) of the Act. The ld AR for the assessee submits that the assessee is not much literate person and is living in the village. The assessee has good case on merit and is likely to succeed if the assessee is given chance to contest the appeal on merit. The cash deposits in the bank was either from withdrawal/ transfer from other accounts and resulted in double addition. The Ld. AR for the assessee further submits that matter may be restored back to the file of Ld. CIT(A) for adjudicating the issue afresh in accordance with law. 3. On the other hand, Ld. Senior Departmental Representative (ld. Sr-DR) for the Revenue submits that assessee was given ample opportunities as reflected by Ld. CIT(A) recorded in para-5.7 of his order. The ld. Sr-DR for the Revenue submits ITA No.168/SRT/2022 (AY 202-13) Vishal Chandulal Patel 3 that Ld. CIT(A) has left no option but to decide the issue raised by assessee on the basis of materials available on record since no corroborative materials placed on record by assessee the Ld. CIT(A) upheld the order of Assessing Officer. In alternative submission, the ld. Sr. DR for the Revenue submits that in case the Hon’ble Tribunal is deem appropriate, the assessee be directed to be vigilant and not to default in attending the proceedings and to waste the time of public authorities/ld. CIT(A). 4. I have heard the rival submissions of both the parties and perused the materials available on record and the orders of lower authorities carefully. I find that during assessment stage, the Assessing Officer made addition of Rs. 31,23,439/- on account of undisclosed sources, deposited in HDFC Bank. The assessing officer made addition by taking view that no reply was given by assessee no any details were furnished. The Ld. CIT(A) upheld the action of Assessing Officer passed ex parte impugned order. 5. Before me, the Ld. AR for the assessee vehemently argued that assessee was not given fair and reasonable opportunity either by Assessing Officer in assessment proceedings or by Ld. ITA No.168/SRT/2022 (AY 202-13) Vishal Chandulal Patel 4 CIT(A) in appellate proceedings. Considering the fact that both the lower authorities passed their ex parte order. Therefore, I deem it appropriate to restore the ground of appeal back to the file of ld CIT(A), with the direction to adjudicate the issue afresh on merit. I also find additional reasons for restoring appeal back to the file of ld CIT(A), as his order is not in accordance with the mandate of section 25(6) of Income-tax Act. Needless to order that before passing the order the ld. CIT(A) shall grant fair opportunity of hearing to the assessee. The assessee is also directed to appear before the ld.CIT(A) as and when the date of hearing and to provide all necessary evidence and information without any further delay and not to seek the adjournment without any valid reasons. Accordingly, the grounds of appeal by assessee are allowed for statistical purpose 6. In the result, appeal of the assessee is allowed for statistical purposes in above terms. Order pronounced in the open court on 02/01/2023 at the time of hearing. Sd/- (PAWAN SINGH) [Ɋाियक सद˟ JUDICIAL MEMBER] सूरत /Surat, Dated: 02 /01/2023 ITA No.168/SRT/2022 (AY 202-13) Vishal Chandulal Patel 5 Ranjan Sr PS Copy to: 1. Appellant- 2. Respondent- 3. CIT(A)- 4. CIT 5. DR 6. Guard File True copy/ By order Sr.P.S./Assistant Registrar, ITAT, Surat