Shri Bhavikbhai Vastupal Shah, Ahmedabad V. Income Tax Officer, Ward-7(2)(1), Ahmedabad

ITA 272/AHD/2022

AI Insights

This case involves an appeal by Shri Bhavikbhai Vastupal Shah against the order of the CIT(A), National Faceless Appeal Centre, Delhi, concerning the Assessment Year 2015-16. The primary grievances included the ex-parte nature of the CIT(A)'s decision, the lack of proper adjudication on merits, and various additions and disallowances made to the assessee's income. The Tribunal noted procedural lapses in the handling of the case, particularly the failure to provide a fair hearing and the ex-parte nature of the previous orders, leading to the decision to remand the case back to the Assessing Officer.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129342 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 17-01-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 04-07-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Additional evidence
• Section: 44AD

Judgement Text

ITA No.272/Ahd/2022 A.Y. 2015-16 Page 1 of 4 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH, AHMEDABAD BEFORE Ms. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No.272/Ahd/2022 Assessment Year: 2015-16 Shri Bhavikbhai Vastupal Shah, vs. Income Tax Officer, 64, Mangaldeep Society, Ward-7(2)(1), Ahmedabad. Behind Naroda Park, Krishna Nagar, Naroda, Ahmedabad – 382 346. [PAN – AWOPS 1986 M] (Appellant) (Respondent) Assessee by : Shri Parimalsinh B. Parmar, A.R. Respondent by : Shri R.R. Makwana, Sr. DR Date of hearing : 18.01.2023 Date of pronouncement : 31.01.2023 O R D E R This appeal is filed by the Assessee against the order dated 26.12.2021 passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the Assessment Year 2015-16. 2. The grounds of appeal raised by the assessee are as under :- “1. The learned CIT(A) has erred in passing an ex-parte order which is in violation of the Principles of Natural Justice. 2. The learned CIT(A) has erred in disposing the impugned assessment order without stating the points for determination, the decision arrived at by the Id. AO as well as the reasons for the decision, thereby violating section 250(6) of the Act. 3. The learned CIT(A) has erred in law and on facts of the case in confirming the addition of alleged income of Rs.20,76,200/- from share transactions through Multi Commodity Exchange and added to total income u/s. 44AD of the Act. ITA No.272/Ahd/2022 A.Y. 2015-16 Page 2 of 4 4. The learned CIT(A) has erred in law and on the facts of the case in confirming the disallowance of Rs.2,43,868/- paid against credit card bills during the year and added to total income. 5. The learned CIT(A) has erred in law and on the facts of the case in confirming the disallowance of Rs.2,20,000/- in respect of time deposit and added to the total income. 6. Both the lower authorities have passed the orders without properly appreciating the facts and they further erred in grossly ignoring various submissions, explanations and information submitted by the appellant which ought to have been considered before passing the impugned order. This action of the lower authorities is in clear breach of law and Principles of Natural Justice and therefore deserves to be quashed. 7. The learned CIT(A) has erred in law and on facts of the case in confirming action of the Id. AO in initiating penalty u/s.271(l)(c) of the Act. 8. The learned CIT(A) has erred in law and on facts of the case in confirming action of the Id. AO in initiating penalty u/s.271(l)(b) of the Act. 9. The learned CIT(A) has erred in law and on facts of the case in confirming action of the Id. AO in initiating penalty u/s.271B of the Act. 10. The learned CIT(A) has erred in law and on facts of the case in confirming action of the Id. AO in charging interest u/s.234A/B/C/D of the Act. 11. The learned CIT(A) has erred in not considering various facts and in not appreciating the facts and law in their proper perspective. 12. The appellant craves leave to add, amend, alter, edit, delete, modify or change all or any of the grounds of appeal at the time of or before the hearing of the appeal.” 3. The assessee filed return of income on 22.08.2015 declaring income of Rs.2,67,900/-. The Assessing Officer passed ex-parte order and made addition of Rs.20,76,200/- out of profit from business Rs.2,43,868/- out of credit card payments of Rs.2,20,000/- out of cash transactions. 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. ITA No.272/Ahd/2022 A.Y. 2015-16 Page 3 of 4 5. There is a delay in filing the appeal before the Tribunal that of 131 days for which the assessee has filed affidavit stating therein that due to some medical exigencies the assessee could not file the appeal within the stipulated time. The reason for delay is genuine and, therefore, the same is condoned. 6. The Ld. AR submitted that since the Assessing Officer has passed ex-parte order without giving hearing as no notice has been received by the assessee, the matter may be remanded back to the file of the Assessing Officer for proper cognisance/adjudication of the evidences filed before the CIT(A). 7. The Ld. DR relied upon the Assessment Order and the order of the CIT(A). 8. Heard both the parties and perused all the relevant material available on record. It is pertinent to note that despite filing additional evidences under Rule 46A and call for remand report by CIT(A), the CIT(A) has passed the order without adjudicating any issues on merit. Therefore, it will be appropriate to remand back these issues contested by the assessee on merit to the file of the Assessing Officer and the order of the Assessing Officer is also ex-parte on earlier occasions. Needless to say the assessee be given opportunity of hearing by following the principles of natural justice. 9. In the result, appeal of the assessee is partly allowed for statistical purpose. Order pronounced in the open Court on this 31 st day of January, 2023. Sd/- (SUCHITRA KAMBLE) Judicial Member Ahmedabad, the 31 st day of January, 2023 PBN/* ITA No.272/Ahd/2022 A.Y. 2015-16 Page 4 of 4 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 Ahmedabad benches, Ahmedabad