Ilyashbhai Ibrahimbhai Vohra, Kheda V. The Income Tax Officer, Ward-3, Nadiad

ITA 171/AHD/2023

AI Insights

The case involves Ilyashbhai Ibrahimbhai Vohra, an agent for the sale of talk time for Telenor, who appealed against the order of the CIT(A), National Faceless Appeal Centre, Delhi, for the Assessment Year 2017-18. The primary contention was the addition of Rs.36,12,530 as unexplained money under Section 69A of the Income Tax Act, 1961, due to substantial cash deposits during the demonetisation period, which the assessee failed to explain. The Assessing Officer passed an ex-parte order under Section 144, leading to the addition. The CIT(A) dismissed the appeal on grounds of non-appearance without discussing the contested points. The Tribunal found the dismissal by CIT(A) to be without merit and remanded the case for a detailed examination of the issues.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129285 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 05-06-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 16-03-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Additional evidence
• Section: 144; 139; 142(1); 69A

Judgement Text

ITA No.171/Ahd/2023 Assessment Year: 2017-18 Page 1 of 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH, AHMEDABAD BEFORE Ms. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No.171/Ahd/2023 Assessment Year: 2017-18 Ilyashbhai Ibrahimbhai Vohra, Sagar Infocom, Ambica Complex, Kheda, Gujarat – 387 411. [PAN – APDPV 0393 R] Vs. Income Tax Officer, Ward – 3, Nadiad. (Appellant) (Respondent) Assessee by Shri B.T. Thakkar, AR Revenue by Shri Sanjay Jain, Sr. DR Da te o f He a r in g 06.06.2023 Da te o f P ro n o u n ce m e n t 09.06.2023 O R D E R This appeal is filed by the Assessee against order dated 30.01.2023 passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the Assessment Year 2017-18. 2. The Assessee has raised the following ground of appeal:- “1. Addition of Rs.36,12,530/- made as unexplained money being bad in law may please be deleted now. Your appellant prays to add, alter and amend the grounds of appeal at the time of hearing.” 3. The assessee is an agent for the sale of talk time for Telecom Company Telenor. Cash was received from customers for mobile recharge. Cash received was deposited in the Bank account. Such funds deposited were then transferred to the Telenor Company. The assessee has not field return of income for the relevant Assessment Year (A.Y.) either under Section 139 or after issue of notice under Section 142(1) of the Income Tax Act, 1961. As per information, it was observed by the Revenue that under “Operating Clean Money” the assessee has deposited substantial cash in bank account during the demonetisation period but has not filed income tax return. The assessee deposited money in cash of Rs.13,05,000/- in the bank account during demonetisation period. Statutory notices were issued but the assessee did not respond and, therefore, the Assessing officer passed Assessment ITA No.171/Ahd/2023 Assessment Year: 2017-18 Page 2 of 3 Order under Section 144 of the Act thereby making addition of Rs.36,12,530/- under Section 69A of the Act as unexplained money. 4. Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. The Ld. AR submitted that the assessment order as well as order of the CIT(A) is ex-parte and, therefore, the matter may be remanded back to the file of Assessing Officer. The Ld. AR submitted that certain details were filed but the same was not taken on record by the CIT(A). 6. The Ld. DR 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. From the perusal of the order of the CIT(A), it appears that the CIT(A) dismissed the appeal only on the ground of non-appearance and not discussed any point related to the ground contested by the assessee before the CIT(A). It appears that the assessee could not attend the hearing because of the genuine reasons and, therefore, in the interest of justice, it will be appropriate to remand back this matter to the file of the CIT(A) for proper adjudication of the issue contested therein on merit and that after taking cognisance of the additional evidence filed before the Tribunal. Needless to say the assessee be given opportunity of hearing by following the principles of natural justice. 8. In the result, appeal of the assessee is partly allowed for statistical purpose. Order pronounced in the open Court on this 9 th June, 2023. Sd/- (SUCHITRA KAMBLE) Judicial Member Ahmedabad, the 9 th day of June, 2023 PBN/* ITA No.171/Ahd/2023 Assessment Year: 2017-18 Page 3 of 3 Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Assistant Registrar Income Tax Appellate Tribunal Ahmedabad benches, Ahmedabad