Shabbirhusain Hajialibhai Chhedawala, Vadodara V. The ITO, Ward-1(3)(1), Vadodara

ITA 298/AHD/2023

AI Insights

The case involves an appeal by Shabbirhusain Hajialibhai Chhedwala against the order of the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre, Delhi, which confirmed a penalty levied by the Assessing Officer under Section 271(1)(c) of the Income Tax Act. The penalty was imposed following the reopening of the assessee's case for the assessment year 2011-12, where unexplained investments in jewellery were noted. The CIT(A) dismissed the appeal without considering the assessee's adjournment request, leading to the current appeal before the Income Tax Appellate Tribunal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299928 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 09-07-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 26-04-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PALAK KSHATRIYA
• Section: 147; 148; 271(1)(c); 274; 43

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I .T .A . N o . 2 9 8/ A h d /2 0 2 3 ( A s se ss m e nt Y e a r : 20 11- 12 ) Sh ab b ir h u s a in H a j i ali b h ai C h h ed aw ala , Ma r ke t B a za r , Nr . To we r , R o ad , A t A n d Po st D a b h oi , D i s t . V a do da r a , G uj a ra t- 39 11 1 0 V s.I .T .O . W ar d- 1( 3) ( 1 ) , V a do d ar a [ P A N N o. AB I P C 6 8 43 N ] (Appellant) .. (Respondent) Appellant by : Ms. Palak Kshatriya, A.R. Respondent by : Shri Ashesh R Rewar, Sr. D.R. D a t e of H ea r i ng 10.07.2023 D a t e of P r o no u n ce me nt 12.07.2023 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 28.02.2023 for A.Y. 2011-12. 2. The grounds of appeal raised by the assessee are as under: “1. On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income-Tax (Appeals) has erred in confirming penalty levied by assessing officer u/s. 271(1)(c) of the Act. 2. On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income-Tax (Appeals) has erred in passing order without considering adjournment request of assessee. 3. It is therefore prayed that the above addition/disallowance made by the assessing officer may please be deleted. 4. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal.” 3. The assessee field return of income for A.Y. 2011-12 on 28.03.2012 declaring total income at Rs. 2,91,300/-. The case was reopened under Section 147 of the Act and notice under Section 148 was issued and served ITA No. 298/Ahd/2023 Shabbirhusain Hajialibhai Chhedwala vs. ITO Asst.Year–2011-12 - 2 - to the assessee. The Assessing Officer observed that the source of the investment in jewellery was not explained by the assessee and therefore, made addition of Rs. 5,90,180/- as unexplained investment in jewellery. The Assessing Officer further issued show-cause notice under Section 274 r.w.s. 271(1)(c) of the Act in respect of penalty under Section 271(1)(c) of the Act. After taking cognizance of the assessee’s reply the Assessing Officer imposed penalty of Rs. 51,450/- under Section 271(1)(c) of the Act. 4. Being aggrieved by the penalty 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 CIT(A) pass the order of dismissal without giving opportunity of hearing to the assessee. The Ld. A.R. submitted that the assessee has filed adjournment application but the same was not taken into account by the CIT(A). 6. The Ld. D.R. relied upon the penalty 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 the assessee has asked for adjournment on 13.02.2023 but the same was not taken into account on the date of issue of notice dated 14.02.2023. Sufficient opportunity was not granted by the CIT(A) for taking cognizance of the assessee’s evidences. The CIT(A) has simpliciter pass ex-parte order without deciding the matter on merit. Hence, it is appropriate to remand back this matter to the file of the CIT(A) for proper adjudication of the issue contested by the assessee before the CIT(A) ITA No. 298/Ahd/2023 Shabbirhusain Hajialibhai Chhedwala vs. ITO Asst.Year–2011-12 - 3 - and decide the case on merit. Needless to say the assessee be given opportunity of hearing by following principle of natural justice. The assessee will also cooperate with the hearing. 8. In result, the appeal of the assessee is partly allowed for statistical purposes. This Order pronounced in Open Court on 12/07/2023 Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER Ahmedabad; Dated 12/07/2023 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 1. Date of dictation 10.07.2023 2. Date on which the type draft is placed before the Dictating Member 10.07.2023 3. Other Member..................... 4. Date on which the approved draft comes to the Sr.P.S./P.S .07.2023 5. Date on which the fair order is placed before the Dictating Member for pronouncement .07.2023 6. Date on which the fair order comes back to the Sr.P.S./P.S 12.07.2023 7. Date on which the file goes to the Bench Clerk 12.07.2023 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..........................................