Madhusudan Bhuraprasad Yadav, Ahmedabad V. The ITO, Ward-5(1)(3), Ahmedabad

ITA 244/AHD/2023

AI Insights

The case involves Madhusudan Bhuraprasad Yadav, the appellant, who appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal was related to the assessment year 2011-12, where the assessee's case was reopened due to non-filing of returns despite having significant transactions in commodities exchange. The Assessing Officer made an addition of Rs. 6,02,929 as Short Term Capital Gain from shares/commodity transactions under Section 144 r.w.s 147 of the Income Tax Act. The CIT(A) dismissed the appeal without considering the merits, leading to the current appeal before the Tribunal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299926 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 18-07-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 16-04-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reopening of assessment; Non passing of speaking order
• Section: 147; 148; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I .T .A . N o . 2 4 4/ A h d /2 0 2 3 ( A s se ss m e nt Y e a r : 20 11- 12 ) Ma d h us ud an B h ur a p r a s a d Ya da v D- 1 0 1, S i ta ba g Te n a me nt , Ge ba n s h a Pi r Wa lo Kh anc ho , Op p. Gu j ar a t War H ou s e , Is a n pu r V a tva R o ad , A h me d a b a d - 38 2 4 45 Vs .I T O War d - 5 ( 1) ( 3 ) , A h me da ba d [ P AN N o. A A SP Y 7 10 0M ] (Appellant) .. (Respondent) Appellant by : Shri M. K. Patel, A.R. Respondent by : Ms. Saumya Pandey Jain, Sr. D.R. D a t e of H ea r i ng 19.07.2023 D a t e of P r o no u n ce me nt 21.07.2023 O R D E R The appeal filed by the assessee is against the order passed by the Ld. Commissioner of Income Tax (Appeals), (in short “Ld. CIT(A)”), National Faceless Appeal Centre (in short “NFAC”), Delhi on 17.02.2023 for A.Y. 2011-12. 2. The grounds of appeal raised by the assessee are as under: “1. That on facts, and in law, the learned NFAC has grievously erred in not granting sufficient and reasonable opportunity of hearing to the appellant, and in dismissing the appeal. 2. That on facts, and in law, the learned NFAC has grievously erred in confirming the re-opening of assessment u/s 147 of the Act. 3. That on facts, and in law, the learned NFAC has grievously erred in not deciding the appeal on merits and in dismissing the appeal by a non speaking order, and thereby confirming the addition of Rs.6,02,930/- made by estimating profit @ 1% from transactions in shares/commodities. 4. The appellant craves liberty to add, alter, amend any ground of appeal.” 3. The assessee is an individual. The case of the assessee was reopened for scrutiny for the reason that the assessee had contract of Rs. 10,00,000/- or ITA No. 244/Ahd/2023 Madhusudan Bhuraprasad Yadav vs. ITO Asst.Year–2011-12 - 2 - more in commodities exchange and not filed the return as per the information available with the Revenue office. Notice under Section 148 of the Act was issued on 27.03.2018 and duly served upon the assessee. The Assessing Officer despite giving statutory notices the assessee has not replied the same and pass the order under Section 144 r.w.s 147 of the Act thereby making addition of Rs. 6,02,929/- as Short Term Capital Gain from shares / commodity transactions. 4. Being aggrieved by the assessment order the assessee filed appeal before the CIT(A). The CIT(A) dismiss the appeal of the assessee. 5. The Ld. A.R. submitted that since the Assessing Officer as well as the CIT(A) has not decided the case on merit despite filing the evidences before the CIT(A), the matter may be remanded back to the file of the Assessing Officer for proper adjudication of the evidences filed before the CIT(A). 6. The Ld. D.R. submitted that despite giving sufficient opportunity the assessee has not responded before the Revenue authorities as well s before the CIT(A). Therefore, the CIT(A) rightly dismiss the appeal of the assessee. 7. Heard both the parties and perused all the relevant material available on record. It is pertinent to note that the CIT(A) has passed ex-parte order without taking into cognizance the evidences filed before the CIT(A). The appeal is decided without discussing about the service of the notices for hearing as well as the findings of the CIT(A) are clearly on the basis of non-appearance of the assessee. From the perusal of the records, it appears that the assessee has filed the details of evidences such as computation of income, summary of speculation transactions, working and STCG and LTCG as well as scrip-wise ITA No. 244/Ahd/2023 Madhusudan Bhuraprasad Yadav vs. ITO Asst.Year–2011-12 - 3 - working of LTCG alongwith Form No. 35 which is the additional evidences filed before the CIT(A). The CIT(A) has totally ignored these additional evidences and therefore, it will be appropriate to admit this additional evidences and remand back the matter to the file of the CIT(A) for proper adjudication of the issues contested by the assessee in the appeal filed before the CIT(A) after taking cognizance of these evidences. Needless to say, the assessee be given opportunity of hearing by following principle of natural justice. The CIT(A) is directed to confront these evidences to the Assessing Officer and called for remand report before deciding the issues on merit and after taking cognizance of the remand report decide the same as per law. The assessee is directed to cooperate the hearing before the CIT(A). 8. In the result, the appeal of the assessee is allowed for statistical purpose. This Order pronounced in Open Court on 21/07/2023 Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER Ahmedabad; Dated 21/07/2023 TANMAY, Sr. PS TRUE COPY आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं धत आयकर आय ु त / Concerned CIT 4. आयकर आय ु त(अपील) / The CIT(A)- 5. वभागीय त न ध, आयकर अपील!य अ धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड' फाईल / Guard file. आदेशान ु सार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ धकरण, अहमदाबाद / ITAT, Ahmedabad