Bhaveshkumar Jayantibhai Patel, Ahmedabad V. The ITO, Ward-3(3)(1), Ahmedabad

ITA 303/AHD/2021

AI Insights

The case involves Bhaveshkumar Jayantibhai Patel, who appealed against the order of the CIT(A), National Faceless Appeal Centre, Delhi, which upheld the addition of Rs. 11,50,000 as unexplained cash deposit under Section 68 of the Income Tax Act, 1961. The assessee had not filed a return for the assessment year 2012-13, and following information about cash deposits, was issued a notice under Section 148 but failed to appear before the Assessing Officer. The CIT(A) dismissed the appeal, leading to the current appeal before the ITAT. The main contention was the lack of proper opportunity to be heard at the CIT(A) level.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299966 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 03-01-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 16-11-2021
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 68; 148; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I .T .A . No .3 03 /A h d / 20 21 ( A s se ss m e nt Y e a r : 20 12- 13 ) B h av e s h k u ma r Ja ya nti bh ai P a t el 20 1 , 2 n d F lo o r , De v a sh is h C o mp le x Nr . R e g e n ta C e n tr a l A nt a r i m H ot e l Of f C G R oad , A h m e da ba d V s . I T O War d - 3 ( 3) ( 1 ) , A h me da ba d [P AN N o.A V FP P1 7 50 Q] (Appellant) .. (Respondent) Appellant by : Shri Maulik Kansara, C.A. Respondent by: Shri Atul Pandey, Sr. D.R. D a t e of H ea r i ng 04.01.2023 D a t e of P r o no u n ce me nt 11.01.2023 O R D E R The appeal filed by the assessee is against the order passed by the Ld. CIT(Appeals), National Faceless Appeal Centre (in short “NFAC”), Delhi on 22.10.2021 for A.Y. 2012-13. 2. The grounds of appeal raised by the assessee are as under: “1. Whether on facts and in circumstances of the case and in law, Ld. Assessing officer has erred in making addition of Rs. 11,50,000/- on account of cash deposit u/s.68 of the Act? 2. Whether on facts and in circumstances of the case and in law, Ld. Assessing officer erred in considering entries in “Bank statement” as books of account of appellant for making addition of Rs. 11,50,000/- u/s.68 of the Act? 3. Whether, on facts and in circumstances of the case and in law, Ld. Assessing officer has erred in issuing notice u/s. 148 of the act? 4. Whether, on facts and in circumstances of the case and in law, Ld. CIT(A) has erred in not allowing proper opportunity of being heard? Further, appellant craves leave to add, amend, alter or withdraw all or any ground of appeal.” ITA No. 303/Ahd/2021 Bhaveshkumar Jayantibhai Patel vs. ITO Asst.Year–2012-13 - 2 - 3. The assessee is an individual and not filed return of income for A.Y. 2012-13. As per AIR information in respect of assessee, the assessee deposit cash of Rs. 11,50,000/- in the State Bank of India, Nava Naroda Branch, Ahmedabad. The NMS letter dated 17.02.2015 was issued to the assessee to file the return for year under consideration and explain the source of cash deposit, however, the assessee did not comply the same and therefore, after recording the reasons and obtaining the prior approval from Pr. CIT the case of the assessee was reopened and notice under Section 148 of the Act was issued to the assessee on 25.03.2019. Despite giving notices assessee never appeared before the Assessing Officer hence the Assessing Officer made addition of Rs. 11,50,000/- as cash deposits under Section 68 of the Act. 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 was not given proper opportunity of hearing by the CIT(A) and passed an ex-parte order. Hence, the Ld. A.R. requested that the matter may be remanded back to the file of the CIT(A) for proper adjudication of the issue on merit after giving proper opportunity of hearing to the assessee. The Ld. D.R. relied upon the assessment order and the order of the CIT(A). 6. Heard both the parties and perused all the relevant material available on record. The CIT(A) has given the notices but as per the explanation given by the Ld. A.R. that the notices were not received by the assessee due to personal difficulties which was explained by the assessee. The order passed by the CIT(A) does not taken into consideration the assessee’s contention and therefore, it will be appropriate to remand back the issue to the file of the ITA No. 303/Ahd/2021 Bhaveshkumar Jayantibhai Patel vs. ITO Asst.Year–2012-13 - 3 - CIT(A) for proper adjudication of the issues contested direct and on merit. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice. Hence, the appeal filed by the assessee is partly allowed for statistical purpose. 7. In the result, the appeal filed by the assessee is partly allowed for statistical purpose. This Order pronounced in Open Court on 11/01/2023 Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER Ahmedabad; Dated 11/01/2023 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 05.01.2023 2. Date on which the type draft is placed before the Dictating Member 06.01.2023 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 11 .01.2023 7. Date on which the file goes to the Bench Clerk 11 .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..........................................