Anilkumar Panachand Agrawal, Banaskantha V. ITO, Ward-2 (BK), Palanpur

ITA 263/AHD/2019

AI Insights

The case involves Anilkumar Panachand Agrawal, who appealed against the order passed by the CIT(Appeals)-4, Ahmedabad, concerning the assessment year 2010-11. The primary contention was regarding the addition of undisclosed income based on bank deposits, which the assessee argued was not solely derived from income. The Assessing Officer (AO) had reopened the assessment under Section 147 of the Income Tax Act, leading to an addition of Rs. 21,42,320 as undisclosed income from cash deposits. The CIT(A) upheld the AO's decision, prompting the appeal to the Tribunal. The Tribunal noted that the assessee had not been able to present relevant evidences due to oversight by a tax consultant and remanded the case back to the CIT(A) for a fresh examination with the new evidences.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299962 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 10 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-01-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 13-12-2022
• Assessment Year: 2010-2011
• Appeal Filed On: 20-02-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Additional evidence
• Section: 148; 144; 205

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I .T .A . No .2 63 /A h d / 20 19 ( A s se ss m e nt Y e a r : 20 10- 11 ) An ilk u m ar P a n a c h a nd A gr a w a l Ag r aw al A ge nc y, N r . Sh iv S ha kt i Ma r k e t Y a r d , Pal a n pu r H ig hw a y R o ad , D ee sa , Di s t. B a nas ka nt h a V s . I T O War d - 2 , Pa l an p u r ( B K ) [P AN N o.A J GP A 0 8 93 E] (Appellant) .. (Respondent) Appellant by : Shri Hardik Vora, A.R. Respondent by: Shri Alpesh Parmar, Sr. D.R. D a t e of H ea r i ng 14.12.2022 D a t e of P r o no u n ce me nt 13.01.2023 O R D E R The appeal filed by the assessee is against the order passed by the Ld. CIT(Appeals)-4, Ahmedabad on 17.12.2018 for A.Y. 2010-11. 2. The grounds of appeal raised by the assessee are as under: “1. The Ld. AO has erred in forming fallacious assumption that mere bank deposit constitute undisclosed income and overlooked that fact that the source of deposit need not necessarily be income of assessee. Such suspect is not valid for reassessment proceeding u/s 147. The Ld. CIT(A)-4, Ahmedabad has also erred in confirming the same without properly appreciating the fact of the case and legal submission filed before him. 2. The Ld. AO erred in making addition of Rs. 21,42,320/- on account of cash deposited in to the bank account and Ld. CIT(A)-4, Ahmedabad in confirming the same. 3. The Ld. AO has erred in granting 20% expenditure on total cash deposit of Rs. 26,77,900/- in to the bank account as income/profit. 4. The Ld. AO erred in not taking 8% of the net profit on cash deposit of RS. 26,77,900/- as per law though he is assessing the income on presumptive basis after granting 20% expenditure from the said turnover. 5. The appellant craves leave to add, alter or delete any ground either before or in the course of hearing of the appeal.” ITA No. 263/Ahd/2019 Anilkumar Panachand Agrawal vs. ITO Asst.Year–2010-11 - 2 - 3. The assessment in the case of the assessee was reopened under Section 147 of the Act after recording reasons and notice under Section 148 of the Income Tax Act was issued on 30.03.2017 requiring the assessee file his return of income for the year under consideration within 30 days from the service of notice. The same notice was served upon the assessee on 30.03.2017, but the assessee did not file the return of income as required under Section 148 of the notice. Since the assessee failed to file his return of income in reply of issuing notice under Section 148 as well as subsequent reminders the Assessing Officer passed assessment order under Section 144 r.w.s. 147 of the Act thereby making disallowance of Rs. 5,35,580/- as regards expenditure granted which is 205 of cash deposit. 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 the assessee could not collect the relevant evidences during the assessment proceedings as well as the appellate proceedings before the CIT(A). The Ld. A.R. submitted that the assessee was not aware about the income tax proceedings and was under impression that required document were submitted by earlier tax consultant before the authority. Therefore, the Ld. A.R. requested that the matter may be remanded back to the file of the CIT(A) for taking on record the additional evidences which are copy of bank statement for F.Y. 2009-10, summary of deposits and payments derived from bank statement and copies of assessment orders for A.Ys. 2011-12 & 2012-13. 6. The Ld. D.R. submitted that ample opportunity was granted to the assessee during the assessment proceedings as well as before the CIT(A). The ITA No. 263/Ahd/2019 Anilkumar Panachand Agrawal vs. ITO Asst.Year–2010-11 - 3 - CIT(A) has taken a cognizance of the assessee’s submissions and therefore, the appeal may be dismissed. The Ld. D.R. 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. It is pertinent to note that while filing the additional evidences before the Tribunal in the application for admitting additional evidences the assessee has clearly stated that the assessee has given all the details of bank statements for relevant Financial Year of the account held with HDFC Bank Ltd with tax consultant but the tax consultant failed to produce the said evidences before both the authorities. The Ld. A.R. submitted that the assessee was not aware of the procedure of the assessment proceedings and appellate proceedings before the authorities. The lapse on the part of assessee appears to be genuine of not producing the relevant evidences before the authorities. Therefore, the matter is remanded back to the file of the CIT(A) for taking cognizance of the additional evidences produced before the Tribunal. The CIT(A) is directed to take cognizance in respect of these evidences and adjudicating the issues on merit by following due process of law. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice. 8. In the result, the appeal filed by the assessee is partly allowed for statistical purpose. This Order pronounced in Open Court on 13/01/2023 Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER Ahmedabad; Dated 13/01/2023 TANMAY, Sr. PS TRUE COPY ITA No. 263/Ahd/2019 Anilkumar Panachand Agrawal vs. ITO Asst.Year–2010-11 - 4 - 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 1. Date of dictation 11.01.2023 2. Date on which the type draft is placed before the Dictating Member 11.01.2023 3. Other Member..................... 4. Date on which the approved draft comes to the Sr.P.S./P.S .01.2023 5. Date on which the fair order is placed before the Dictating Member for pronouncement .01.2023 6. Date on which the fair order comes back to the Sr.P.S./P.S 13.01.2023 7. Date on which the file goes to the Bench Clerk 13.01.2023 8. Date on which the file goes to the Head Clerk.......................................... 9. The date on which the file goes to the Assistant Registrar for signature on the order.......................... 10. Date of Despatch of the Order..........................................