Shri Vimal Manjibhai Kasundra , Morbi V. The ITO Ward-3, Morbi, Morbi

ITA 205/RJT/2023

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 8236 (ITAT-RAJKOT)
• Duration Of Justice: 9 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-03-2024
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: DB
• Next Hearing Date: 11-03-2024
• Assessment Year: 2010-2011
• Appeal Filed On: 13-06-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHISH KUMAR PANDEY
• Keywords: Bogus purchase; Principle of natural justice; Reassessment proceedings; Set aside
• Section: 147; 143(1)

Judgement Text

ITA No.205/RJT/2023 Assessment Year: 2010-11 1 IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT (Conducted through E-Court at Ahmedabad) BEFORE Ms. SUCHITRA KAMBLE, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ITA No.205/RJT/2023 Assessment Year: 2010-11 Vimal Manjibhai Kasundra, Ceramic Plaza, 3 rd Floor, 08-A, national Highway, Morbi – 363 642. [PAN – AKBPK6669 G] Vs. The Income Tax Officer, Ward – 3, Morbi. (Appellant) (Respondent) Assessee by Shri Chetan Agarwal, AR Revenue by Shri Ashish Kumar Pandey, Sr. DR D a t e o f H e a ri n g 12.03.2024 D a t e o f P ro n o u n c e m e n t 15.03.2024 O R D E R PER SUCHITRA KAMBLE, JUDICIAL MEMBER : This appeal is filed by the Assessee against the order dated 18.04.2023 passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the Assessment Year 2010-11. 2. The Assessee has raised the following grounds of appeal:- “1. That, the learned CIT(A) has erred in law and as well as on facts in dismissing/disposing off the appeal ex-parte on basis of Latin Dictum “VIGILANTIBUS ET NON DORMIENTIBUS JURA SUB VENIUNT” 2. That the learned CIT(A) has erred in law and as well as on facts in holding that the addition made of Rs.7,65,000/- as bogus purchase from Parth Chem Impex Pvt. Ltd. is rightly added as income. 3. Under the circumstances it is prayed that the order of the Ld. CIT(A) may kindly be set aside and the additions upheld by him as above may kindly be deleted.” ITA No.205/RJT/2023 Assessment Year: 2010-11 2 3. The assessee filed return of income for the Assessment Year 2010-11 on 29.09.2010 declaring total income at Rs.6,54,950/-. The return of income was processed under Section 143(1) of the Income Tax Act, 1961 thereby accepting the returned income. Further, the case was reopened under Section 147 of the Act on the basis of information received from CIT that M/s. Locus Lab, Proprietary concern of the assessee had taken accommodation entry in the form of bogus bill from one of the Hawala Party M/s Parth Chem Impex Pvt. Ltd. amounting to Rs.7,50,000/-. During the course of reassessment proceedings, the assessee failed to furnish any explanation in response to the show cause notice issued by the Assessing Officer as to why amount of Rs.7,65,000/- shown as purchases from M/s Parth Chem Impex Pvt. Ltd. should not be treated as undisclosed income. Subsequently, the Assessing Officer completed the assessment on 29.02.2016 thereby disallowing the amount of Rs.7,65,000/- and treated the same as undisclosed income. 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 CIT(A) has not adjudicated the issues contested in the appeal before him on merit and simply dismissed the appeal of the assessee. The Ld. AR submitted that the matter may be remanded back to the file of the CIT(A) for proper adjudication of the issues. 6. The Ld. DR relied upon the Assessment Order and the order of the CIT(A). 7. We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the CIT(A) has given notices of hearing but whether that was properly served upon the assessee or not has not been mentioned in the order of the CIT(A). Besides this, the CIT(A) has dismissed the appeal of the assessee only on the ground of non-appearance and not commented on merit of the case. Hence, it is appropriate to remand back this matter to the file of the CIT(A) for proper adjudication of the issues contested by the assessee before the CIT(A) as per law and decide the issues. Needless to say, the assessee be given opportunity of hearing by following the principles of natural justice. ITA No.205/RJT/2023 Assessment Year: 2010-11 3 8. In the result, appeal of the assessee is partly allowed for statistical purpose. Order pronounced in the open Court on this 15 th March, 2024 . Sd/- Sd/- (WASEEM AHMED) (SUCHITRA KAMBLE) Accountant Member Judicial Member Ahmedabad, the 15 th day of March, 2024 PBN/* 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 Rajkot Bench, Rajkot