Falun Mayurkumar Shah, Ahmedabad V. ITO, Ward-3(2)(2), Ahmedabad

ITA 2930/AHD/2017

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 5741 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 11 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 26-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Salary income; Opportunity of being heard; Additional evidence; Set aside
• Section: 68; 143(3)

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठअहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठ ‘बी’ अहमदाबाद। अहमदाबाद।अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD (through web-based video conferencing platform) ] ] BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ITA No. 2930/Ahd/2017 Assessment Years : 2014-15 Falun Mayurbhai Shah, 30, Ashwamegh Bungalow Part-3, Nr. D-Mart, 132 Feet Ring Road, Satellite, Ahmedabad-380015 PAN : BIIPS 0869 L Vs Income Tax Officer, Ward-3(2)(2), Ahmedabad / (Appellant) / (Respondent) Assessee by : Shri Sanjay R. Shah, AR Revenue by : Shri R.R. Makwana, Sr DR /Date of Hearing : 23/12/2021 /Date of Pronouncement: 23/12/2021 आदेश/O R D E R PER P.M. JAGTAP, VICE-PRESIDENT : This appeal filed by the assessee is directed against the order of the learned Commissioner of Income-tax (Appeals)-7, Ahmedabad [“CIT(A)” in short] dated 04.09.2017. 2. The assessee, in the present case, is an individual who derives income from business and other sources. The return of income for the year under consideration was filed by him on 09.10.2014 declaring total income at Rs.8,49,700/-. In the assessment completed under Section 143(3) of the Income-tax Act, 1961 (‘the Act’ in short) vide order dated 23.12.2016, the total income of the assessee was determined by the Assessing Officer at Rs.95,25,115/- after making the following additions/disallowances:- i) Disallowance of commission expenses - Rs.10,30,556/- ii) Addition on account of closing stock - Rs.10,00,000/- iii) Addition under Section 68 of the Act - Rs.40,80,903/- ITA No. 2930/Ahd/2017 Falun Mayurbhai Shah Vs. ITO AY : 2014-15 2 iv) Disallowance of travelling expenses - Rs.12,32,414/- v) Disallowance of petrol and conveyance Exp.- Rs. 1,16,542/- vi) Disallowance of salary expenses - Rs.12,15,000/- 3. Aggrieved by the order of the learned Assessing Officer, assessee preferred appeal before the learned CIT(A) challenging the various additions/disallowances made by the Assessing Officer. During the course of appellate proceedings before the learned CIT(A), certain details and documents were furnished by the assessee to support and substantiate his case on the various issues raised in the appeal relating to the disallowances/additions made by the Assessing Officer. The learned CIT(A), however, found certain discrepancies and anomalies in the details and documents furnished by the assessee and, rejecting the submissions made by the assessee on the basis of the said details and documents, he proceeded to confirm all the additions/disallowances made by the Assessing Officer while computing the total income of the assessee. Aggrieved by the order of learned CIT(A), the assessee has preferred this appeal before the Tribunal raising the issues relating to various additions/disallowances made by the Assessing Officer and confirmed by the learned CIT(A). 4. We have heard the arguments of both the sides and also perused the relevant material on record. The assessee during the course of appellate proceedings before the Tribunal has filed the following additional evidences:- Sr. No. Particulars 1 Bank statements of the agents to whom commission is paid 2 Ledger confirmations along with the acknowledgment of filing Income-tax return in Form ITR-V as well as statement of total income of the agents of having offered the commission income to tax 3 Certificate obtained from Chartered Accountant certifying the proper maintenance of stock ITA No. 2930/Ahd/2017 Falun Mayurbhai Shah Vs. ITO AY : 2014-15 3 4 Confirmation of Mr. Jignesh Shah as well as the acknowledgement of Income-tax return filed by him in Form ITR-V 5 Purchase order with M/s. M. A. H. Y. Khoory and Co. LLC 6 Ledger account of M/s. M. A. H. Y. Khoory and Co. LLC for the past 3 years 7 Copy of email correspondence with M/s. M. A. H. Y. Khoory and Co. LLC 8 Ledger account of M/s. M. A. H. Y. Khoory and Co. LLC for the year under consideration 9 Qualification certificate of Mr. Honey Shah 10 Ledger confirmations along with the acknowledgment of filing Income-tax return in Form ITR-V as well as statement of total income of Sangitaben M. Shah and Honey M. Shah offering their salary income to tax. 11 Form No.26AS of the payees of commission expenses. 5. The assessee has also filed an application seeking admission of the additional evidence explaining therein the reasons for not producing the same before the Assessing Officer. At the time of hearing before the Tribunal, the learned Counsel for the assessee has read out and highlighted the said reasons for explaining the inability of the assessee to produce the evidence during the course of assessment proceedings before the Assessing Officer. He has also submitted that some of these documentary evidences were filed before the learned CIT(A) but he did not take cognizance of the same by pointing out certain discrepancies which were not very relevant. He has also explained the relevance of these documentary evidences for the purpose of deciding the issues involved in this appeal of the assessee relating to various additions/disallowances made by the Assessing Officer and confirmed by the learned CIT(A). Keeping in view of the submissions made by the learned Counsel for the assessee and the nature of the additional evidences filed by the assessee which are relevant to decide the issues involved in this appeal of the assessee, we consider it fair and proper and in the interest of justice to admit the additional evidences filed by the assessee. The learned Sr. DR has also not raised any objection for admission ITA No. 2930/Ahd/2017 Falun Mayurbhai Shah Vs. ITO AY : 2014-15 4 of the said additional evidences. He, however, has contended that an opportunity may be given to the Assessing Officer to verify these additional evidences raised by the assessee, practically for the first time, before the Tribunal. We find merit in this contention of the learned Sr. DR. The impugned order of the learned CIT(A) on the issues involved in this appeal is accordingly set aside and the matter is restored to the file of the Assessing Officer to decide the same afresh in the light of the additional evidences filed by the assessee after giving the assessee proper and sufficient opportunity of being heard. As undertaken by the learned Counsel for the assessee, the assessee shall make due compliance before the Assessing Officer and shall extend all possible cooperation in order to enable the Assessing Officer to complete the assessment afresh expeditiously. 6. In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the Court on 23 rd December 2021 at Ahmedabad. Sd/- Sd/- (MAHAVIR PRASAD) (P.M. JAGTAP) JUDICIAL MEMBER VICE-PRESIDENT Ahmedabad, Dated 23/12/2021 *Bt /Copy of the Order forwarded to : 1. ! / The Appellant 2. "# ! / The Respondent. 3. $%$&' # # ( / Concerned CIT 4. # # ( ) (/ The CIT(A)- 5. + , # &' , # # &' /DR,ITAT, Ahmedabad, 6. , ./ 0 /Guard file. / BY ORDER, TRUE COPY ह # $ज (Asstt. Registrar) # # &' ITAT, Ahmedabad 1. Date of dictation- ...23.12.2021...- ... 2. Date on which the typed draft is placed before the Dictating Member ...23.12.2021.........