Smt. Monal Yashwantbhai Thakker, Ahmedabad V. ACIT, Central Circle-1(1), Ahmedabad

ITA 1736/AHD/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 3592 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 02-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Assessment record; Revised return
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH (CONDUCTED THROUGH VIRTUAL COURT) BEFORE: SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI AMARJIT SINGH, ACCOUNTANT MEM BER SMT. MONAL YASHWANT BHAI THAKKER, 19-21, NARAYAN CHAMBERS, B/H, PATANG HOTEL, ASHRAM ROAD, AHMEDABAD PAN: ACLPT2079H (APPELLANT) VS THE ACIT, CIRCLE-1(1), AHMEDABAD (RESPONDENT) REVENUE BY: SHRI R.R. MAKWANA, SR. D.R. ASSESSEE BY: NONE DATE OF HEARING : 08-10-2021 DATE OF PRONOUNCEMENT : 13-10-202 1 /ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:- THIS ASSESSEES APPEAL FOR A.Y. 2015-16, ARISES FRO M ORDER OF THE CIT(A)-11, AHMEDABAD DATED 27-06-2018, IN PROCEEDI NGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHO RT THE ACT. ITA NO. 1736/AHD/2018 ASSESSMENT YEAR 2015-16 I.T.A NO. 1736/AHD/2018 A.Y. 2015-16 PAGE NO SMT. MONAL YASHWANT BHAI THAKKER VS. ACIT 2 1. THE LD. A. O. HAS ERRED IN LAW AND ON FACTS COMPUTI NG INCOME OF RS.24,40,300/-EVEN THOUGH THE APPELLANT HAS PROV IDED ALL NECESSARY EXPLANATIONS AND DETAILS DURING THE ASSESSMENT PROC EEDINGS. 2. THE ID. AO HAS ERRED IN LAW IN EXPANDING TH E LIMITED SCRUTINY TO COMPLETE SCRUTINY BY GOING BEYOND THE ISSUE OF VERI FICATION BY MISMATCH AND EXPANDING THE SCOPE OF CHANGING THE HE AD OF INCOME WITHOUT SEEKING PRIOR APPROVAL FROM THE HIGHER AUTH ORITY. 3. THE FACT IN BRIEF IS THAT RETURN OF INCOME D ECLARING TOTAL INCOME AT RS. 27,98,660/- WAS FILED ON 28 TH AUGUST, 2015. SUBSEQUENTLY, THE ASSESSEE HAS FILED REVISED RETURN OF INCOME ON 29 TH SEP, 2015 AND 9 TH JAN, 2016 DECLARING TOTAL INCOME OF RS. 4,06,510/-. THE CASE OF THE ASSESSEE WAS SUBJECT TO SCRUTINY ASSESSMENT AND NOT ICE U/S. 143(3) OF THE ACT WAS ISSUED ON 29 TH JULY, 2016. THE ASSESSMENT U/S. 143(3) OF THE ACT WAS FINALIZED ON 11 TH DECEMBER, 2017 ASSESSING THE TOTAL INCOME AT RS. 26,02,404/-. THE ASSESSING OFFICER WAS OF T HE VIEW THAT ASSESSEE HAS WRONGLY COMPUTED TOTAL TAXABLE INCOME BY CHANGI NG THE AMOUNT OF INTEREST AND RENT RECEIVED FROM OTHER SOURCES TO IN COME FROM BUSINESS AND PROFESSION AND INCORRECTLY SET OFF THE INCOME A GAINST BROUGHT FORWARD BUSINESS LOSS OF RS. 13,92,146/- WHICH WOUL D NOT BE AVAILABLE TO THE ASSESSEE. 4. AGGRIEVED ASSESSEE HAS FILED APPEAL BEFOR E THE LD. CIT(A). THE LD. CIT(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE . I.T.A NO. 1736/AHD/2018 A.Y. 2015-16 PAGE NO SMT. MONAL YASHWANT BHAI THAKKER VS. ACIT 3 5. HEARD BOTH THE SIDES AND PERUSED THE MATER IAL ON RECORD. THE LD. CIT(A) HAD DISMISSED THE APPEAL OF THE ASSESSEE HOL DING THAT THE CONTENTION OF THE ASSESSEE ON THE ISSUE THAT THE CA SE WAS SELECTED FOR LIMITED SCRUTINY BUT THE ASSESSING OFFICER MADE THE DETAILED SCRUTINY WHICH WAS BEYOND HIS POWER. IN THIS CONNECTION, TH E LD. CIT(A) HELD THAT THE LIMITED SCRUTINY CAN BE CONVERTED INTO FUL L SCRUTINY WITH THE APPROVAL OF HIGHER AUTHORITIES AND THE ASSESSEE COU LD NOT PRODUCE ANY EVIDENCES TO SHOW THAT APPROVAL FROM CONCERNED AUTH ORITY WAS NOT TAKEN. IN THIS REGARD, WE HAVE PERUSED THE MATER IAL ON RECORD AND IT IS NOTICED THAT NOWHERE IN THE ASSESSMENT RECORD, THE ASSESSING OFFICER HAS MADE ANY REFERENCE THAT ANY APPROVAL OF THE HIG HER AUTHORITY WAS TAKEN FOR CONVERTING THE CASE OF THE ASSESSEE FROM LIMITED SCRUTINY TO THE DETAILED SCRUTINY. UNDER THE CIRCUMSTANCES, W E OPINED THAT THE DECISION OF LD. CIT(A) IS UNJUSTIFIED SINCE THE LD. CIT(A) HAS NEITHER CALLED ANY REMAND REPORT FROM THE ASSESSING OFFICER ON THE OBJECTION OF THE ASSESSEE REGARDING TAKING OF APPROVAL FROM HIGH ER AUTHORITY FOR CONVERTING LIMITED SCRUTINY TO THE DETAILED SCRUTIN Y NOR THE LD. CIT(A) HAS GIVEN DETAILED REASON ALONG WITH THE POINTS FOR DETERMINATION OF HIS DECISION AS PRESCRIBED IN SECTION 250(6) OF THE I.T . ACT. THEREFORE, WE ARE OF THE VIEW THAT IT WOULD BE APPROPRIATE TO RES TORE THIS CASE OF THE ASSESSEE TO THE FILE OF THE LD. CIT(A) FOR ADJUDICA TING AFRESH AFTER OBTAINING REPORT FROM THE ASSESSING OFFICER AS DIS CUSSED SUPRA IN THIS ORDER. THEREFORE, WE RESTORE THIS CASE TO THE FIL E OF THE LD. CIT(A) FOR I.T.A NO. 1736/AHD/2018 A.Y. 2015-16 PAGE NO SMT. MONAL YASHWANT BHAI THAKKER VS. ACIT 4 ADJUDICATING AFRESH AS DIRECTED ABOVE. ACCORDINGL Y, THIS GROUND OF APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL P URPOSES. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 13-10-2021 SD/- SD/- (RAJPAL YADAV) (AMARJIT SINGH) VICE PRESIDENT ACCOUNTANT MEMBER AHMEDABAD : DATED 13/10/2021 / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,