Tanzil Mohammad Ilyas Kapadia, Surat V. Income Tax Officer, Ward 2(2)(1), Surat, Surat

ITA 172/SRT/2024

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 6639 (ITAT-SURAT)
• Duration Of Justice: 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-06-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 29-05-2024
• Assessment Year: 2020-2021
• Appeal Filed On: 15-02-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SURESH K. KABRA
• Keywords: Unexplained investment; Principle of natural justice; Additional evidence
• Section: 144

Judgement Text

आयकर अपीलीय अिधकरण, सुरत Ɋायपीठ, सुरत IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER आ.अ.सं./ITA No.172/SRT/2024 (AY 2020-21) (Hearing in Physical Court) Tanzil Mohammad Ilyas Kapadia, 11/223, Tebrez Complex, Opp. Pratrap Press Gali, Surat-395002 [PAN No. DHKPK 5310 R] Vs Income Tax Officer, Ward-2(2)(1), Surat, Room #626, Income Tax Office, Aayakar Bhawan, Majura Gate, Surat-395001 अपीलाथŎ/Appellant ŮȑथŎ /Respondent िनधाŊįरती की ओर से /Assessee by Shri Suresh K. Kabra, CA राजˢ की ओर से /Revenue by Shri J.K.Chandnani, Sr-DR अपील पंजीकरण/Appeals instituted on 16.02.2024 सुनवाई की तारीख/Date of hearing 30.05.2024 उद्घोषणा की तारीख/Date of pronouncement 05.06.2024 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 National Faceless Appeal Centre, Delhi [ for short, “NFAC)/Ld. CIT(A)”] dated 15.01.2024 for the assessment year 2020-21, which in turn arises out of assessment order passed by Assessing Officer under section 144 r.w.s. 144B of Income Tax Act, 1961 (‘the Act’) on 24.09.2022. 2. Rival submission of both the parties heard. Record perused. The Ld. Authorized Representative (Ld.AR) for the assessee submits that he has very limited issue before the Bench that assesse could not file document of shareholding in the property acquired by the assessee as it was not available with the assessee. Before Assessing Officer made compliance and filed his bank details showing the payment for source of investment. The assessee ITA No.172/SRT/2024 (A.Y 20-21) Tanzil Mohammad Ilyas Kapadia 2 has now filed the copy of the sale deed of the property showing the ½ ownership in the property. The assessing officer made addition The assessment was also completed under section 144 r.w.s. 144B of the Act in making addition for the want of evidence. The Ld. AR of the assessee submits that assessee purchased immovable property along with his co- owner, Tanveer Kapadia, was having 50% share in the property in question. The addition was made by the Assessing Officer only for want of non-filing the convenience deed showing share of assessee. The Assessing Officer treated the entire purchase consideration as unexplained investment rather assessee has only 50% (1/2) share in the property. The assessee has obtained certified copy of purchase deed, which is placed on record. The assessee purchased said property along with his brother, Tanveer Kapadia. The Ld. AR of the assessee submits that such evidence may be allowed to be filed which is relevant for adjudication of the issue involved in the present appeal. The Ld. AR of the assesse submits that a very short matter can be decided by the Bench to restore the matter back to the file of lower authorities for natural justice. 3. On the other hand, Ld. Sr-DR for the Revenue submits that besides showing the actual share of assessee, the assessee is required to substantiate his source of investment, which has not been substantiated by assessee. Therefore, in case Bench consider that document filed by assessee is sufficient to prove half of the share in the property acquired by the assessee, the Assessing Officer may be allowed to examine source of investment and ITA No.172/SRT/2024 (A.Y 20-21) Tanzil Mohammad Ilyas Kapadia 3 matter may be restored back to the file of Assessing Officer with a direction to assessee to substantiate the source of investment of assessee’s share. 4. We have considered the submission of both the parties and have gone through the orders of the lower authorities carefully. We find that Assessing Officer made the addition of Rs.40,00,000/- by taking view that assessee failed to explain the offer about the nature and source of investment and assessee failed to file any documentary evidence that assessee purchase immovable property jointly with other co-owner. The Ld.CIT(A) confirmed the action of Assessing Officer in ex parte proceedings by taking view that notices of hearing in appeal was served on five occasions though assessee failed to substantiate the grounds of appeal. Considering the fact that assessee has filed copy of sale deed of property acquired during the relevant period for the first time before Tribunal showing the facts that assessee and his brother, Tanveer Kapadia are having 50% share each in the property. The documents filed by assessee is relevant for adjudication of issue involved in the present appeal. Therefore, the evidence / additional evidence filed by the assessee is admitted. Further considering the fact that assessee has not substantiated his source of investment before Assessing Officer. Therefore, in the interest of justice, the matter is back to the file of Assessing Officer to pass order afresh in accordance law. The assessee is directed to substantiate the source of investment and to file copy of purchase deed showing that assessee has acquired 50% share in the property in question. ITA No.172/SRT/2024 (A.Y 20-21) Tanzil Mohammad Ilyas Kapadia 4 With this direction, the appeal of assessee is treated as allowed for statistical purposes. 5. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 05/06/2024. Sd/- Sd/- (BIJAYANANDA PRUSETH) (PAWAN SINGH) [लेखा सद˟/ACCOUNTANT MEMBER] [Ɋाियक सद˟ JUDICIAL MEMBER] Surat, Dated: 05/06/2024 Dkp. Out Sourcing Sr. P.S Copy to: 1. Appellant- 2. Respondent- 3. CIT(A) 4. CIT 5. DR 6. Guard File True copy/ By order // True Copy // Sr. Private Secretary /Assistant Registrar, ITAT, Surat