Shri Rasik Vallabhbhai Moliya, Rajkot V. The ITO Ward- 1 (1) (5), Rajkot, Rajktot

ITA 170/RJT/2023

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 4036 (ITAT-RAJKOT)
• Duration Of Justice: 8 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 24-01-2024
• Assessment Year: 2010-2011
• Appeal Filed On: 18-05-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained investment; Principle of natural justice; Set aside
• Section: 148; 144; 139(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT (Conducted Through Virtual Court) Before: Shri Waseem Ahmed, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member Rasik Vallabhbhai Moliya At Village Madhapar, Jamnagar Road, Rajkot, Gujarat PAN: AMUPM1990P (Appellant) Vs The ITO, Ward-1(1)(5), Rajkot (Respondent) Assessee Represented: Shri D.M. Rindani, A.R. Revenue Represented: Shri K.L. Solanki, Sr. D.R. Date of hearing : 25-01-2024 Date of pronouncement : 31-01-2024 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This appeal is filed by the Assessee as against exparte order dated 20.03.2023 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, (in short referred to as “CIT(A)”), arising out of the exparte Reassessment order passed under section 144 r.w.s. 147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2010-11. ITA No. 170/Rjt/2023 Assessment Year 2010-11 I.T.A No. 170/Rjt/2023 A.Y. 2010-11 Page No Shri Rakik Vallabhbhai Moliya vs. ITO 2 2. The brief facts of the case is that the assessee is an individual who has made transaction of purchase and sale of commodities in Multi Commodity Exchange (MCX). As per information, the assessee made transaction of Rs.19,04,96,560/-, however assessee has not filed his Return of Income u/s. 139(1) of the Act. Hence a notice u/s. 148 was issued by the Assessing Officer on 31.03.2017. As there was no compliance to the notices, exparte assessment order passed estimating 1% share transaction of Rs.19,04,965/-. 3. Aggrieved against the assessment order, the assessee filed an appeal before Commissioner of Income Tax (Appeals) on 11.01.2018. Thereafter the appeal was transferred to National Faceless Appeal Centre, wherein three opportunities of hearing given on 14.01.2021, 22.02.2021 and 15.03.2023. Since there was no response from the assessee, the Ld. CIT(A), NFAC confirmed the addition made by the Assessing Officer and the appeal filed by the Assessee was dismissed exparte. 4. Aggrieved against the same, the assessee is in appeal before us raising the following Grounds of Appeal: 1. The Learned Commissioner of Income-tax (Appeals)-NFAC Delhi erred in upholding validity of reassessment u/s 147 by issue of notice u/s 148 in light of reasons recorded. 2. Without prejudice to ground no. 1 above, on merits, the Learned Commissioner of Income-tax (Appeals)-NFAC, Delhi erred in confirming the action of the assessing officer in making addition of Rs. 19,04,965/- by treating 1% of alleged share transactions of Rs.19,04,96,560/- as unexplained investment. 3. The appellant craves leave to add, amend, alter and withdraw any ground of appeal anytime up to the hearing of this appeal. I.T.A No. 170/Rjt/2023 A.Y. 2010-11 Page No Shri Rakik Vallabhbhai Moliya vs. ITO 3 5. Ld. Counsel Shri D.M. Rindani appearing for the assessee submitted before us a Paper Book containing 31 pages and drawn our attention to the written submissions as well as Additional documents filed by the assessee under Rule 46A of the Income Tax Rules before Commissioner of Income Tax (Appeals)-1, Rajkot on 16.01.2020. Pursuant to the same, the Ld. CIT(A)-1, Rajkot vide his letter dated 16.01.2020 and No.CIT(A)-1/Rjt/Rem.Rep/10014-(18- 19)/RVM/2019-20 to the Assessing Officer calling for his Remand Report. Without considering the above Paper Book and admissions of additional documents under Rule 46A, Ld. NFAC dismissed the appeal filed by the assessee for non-prosecution. Therefore pleaded to set aside the matter back to the file of Ld. CIT(A). 6. Per contra, Ld. Sr. D.R. Shri K.L. Solanki appearing for the Revenue submitted that the Paper Book contains the Ledger account, Bank statement and other details. In the Original assessment order being an exparte order and the assessment year involved herein 2010-11, the matter may be set aside back to the file of Jurisdictional Assessing Officer since Remand Report is called from the A.O. 7. We have given our thoughtful consideration and perused the materials available on record. Ld. CIT(A), NFAC simply dismissed the appeal without verifying the entire records, what was transmitted to NFAC and without considering the written submissions and admissions of new documents under Rule 46A of the Rules. Therefore in the Interest of Natural Justice and Fair Play, we deem it fit to set aside the matter back to the file of Ld. I.T.A No. 170/Rjt/2023 A.Y. 2010-11 Page No Shri Rakik Vallabhbhai Moliya vs. ITO 4 Jurisdictional Assessing Officer to frame fresh assessment order, taking note of the additional documents submitted by the assessee. Needless to say that the assessee should cooperate with the Assessing Officer by providing all the necessary documents for passing fresh assessment order. 8. In the result, the appeal filed by the Assessee is allowed for statistical purpose. Order pronounced in the open court on 31-01-2024 Sd/- Sd/- (WASEEM AHMED) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER True Copy JUDICIAL MEMBER Ahmedabad : Dated 31/01/2024 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, राजकोट