Ashok Dhirubhai Talaviya, Ahmedabad V. The ITO, Ward-7(2)(1), Ahmedabad

ITA 341/AHD/2023

AI Insights

This case involves an appeal by Ashok Dhirubhai Talaviya against the order of the National Faceless Appeal Centre (NFAC), Delhi, concerning the assessment year 2012-13. The primary issues in the appeal were the validity of the notice issued under section 148 of the Income Tax Act, 1961, and the addition of Rs. 5,00,000 as undisclosed/unexplained investment. The appellant contested that the notice under section 148 was issued without proper reasoning and that the addition of Rs. 5,00,000 was unjust as he had not made any such investment. The Tribunal noted that both the Assessing Officer and the CIT(A) had passed ex-parte orders without the presence of the assessee or proper consideration of his submissions, leading to the decision to remand the case for a fair hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 131567 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 11-09-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 07-05-2023
• Laws Referred To: The Income Tax Act 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained investment; Principle of natural justice; Competent authority
• Section: 148; 144; 142(1); 143(2)

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH Before: Ms. Suchitra Kamble, Judicial Member Ashok Dhirubhai Talaviy a, AA-7, Sant Asharam So ciety, Th akk arbapanagar, Naro da, Ah medabad PAN: AGYTP56 49T (Appellant) Vs The Income Tax Officer, Ward-7(2)(1), Ah med abad, (Resp ondent) Asses see b y : Shri Nish it B Jesur, A. R. Revenue by : Shri Urjit Shah, Sr. D. R. Date of hearing : 12-09 -2 023 Date of pronouncement : 15-09 -2 023 आदेश/ORDER This is an appeal filed against the order dated 10-03-2023 passed by National Faceless Appeal Centre (NFAC), Delhi for assessment year 2012- 13. 2. The grounds of appeal are as under:- “1. The Ld. CIT (A) has grossly erred in law and on facts in dismissing the appeal. He ought to have allowed the appeal fully in accordance with the grounds of appeal raised by the appellant before him. ITA No. 341/Ahd/2023 Assessment Year 2012-13 I.T.A No. 341/Ahd/2023 A.Y. 2012-13 Page No. Ashok Dhirubhai Talaviya vs. ITO 2 I. Challenging the Validity of Notice issued u/s 148 of The Income Tax Act 1961. 1. The Ld. CIT (A) has erred in law and on facts by not dealing with Ground raised by the appellant. 2. The Ld. CIT (A) has erred in law and on facts by issuing the notice u/s 148 of the Act without recording his own reason to believe and merely relying on the information available. 3. The Ld. CIT (A) has erred in law and on facts by not issuing notice u/s 143(2) of The Income Tax Act, 1961. II. Addition of Rs. 5,00,000/- as Undisclosed/Unexplained Investment. 1. The Ld. CIT (A) has erred in law and on facts in confirming the addition of Rs 5,00,000/- made by the ITO, Ward-7(2)(l), Ahmedabad on account of Undisclosed/ Unexplained Investment. 2. The Ld. CIT(A) has erred in law and on facts in not properly considering the fact that appellant was not aware of such investment of Rs. 5,00,000/- in Shriram City Union Finance Company Ltd and in fact has not made any investment of Rs. 5,00,000/- during the year under consideration which are very clear from the bank statement of the appellant. The appellant reserves its right to add, amend, alter or modify any of the grounds stated hereinabove either before or at the time of hearing. PRAYER The appellant therefore respectfully prays that :- 1. The Notice issued u/s 148 and subsequent assessment proceeding u/s 147 may kindly be declared as void ab initio. 2. The addition of Rs. 5,00,000/- confirmed by the Ld. CIT (A) may kindly be deleted. 3. Such and further relief as the nature and circumstances of the case may justify.” I.T.A No. 341/Ahd/2023 A.Y. 2012-13 Page No. Ashok Dhirubhai Talaviya vs. ITO 3 3. The assessee’s case was reopened by issuing notice u/s. 148 of the Income Tax Act dated 29-03-2019. After obtaining approval from the competent authority for the reason that during the year under consideration, the assessee has transactions with MCX and not filed return of income for assessment year 2012-13. Subsequently, notices u/s. 142(1) of the Act dated 08-7-2019 and 28-09-2019 were issued and served upon the assessee but no compliance was made by the assessee. Show cause notice dated 07-11-2019 was also issued and served but nobody attended the assessment proceedings, therefore, the Assessing Officer proceeded on the basis of the records and made addition of Rs. 5,00,000/- in respect of undisclosed/unexplained investment thereby passing order u/s. 144 along with 147 of the Act. 4. Being aggrieved by the assessment order, the assessee filed appeal before the ld. CIT(A). The ld. CIT(A) dismissed the appeal of the assessee. 5. The ld. Authorized Representative submitted that since the assessee is a daily wager labourer and the transaction which has been pointed out by the Assessing Officer/Revenue is not from the assessee and Assessing Officer as well the CIT(A) has not given opportunity of hearing to the assessee and passed ex-parte order. The ld. Authorized Representative therefore requested that the matter be remanded back to the file of the Assessing Officer. 6. The ld. Departmental Representative relied upon the assessment order and the order of the ld. CIT(A) I.T.A No. 341/Ahd/2023 A.Y. 2012-13 Page No. Ashok Dhirubhai Talaviya vs. ITO 4 7. Heard both the sides and perused all the relevant materials available on record. It is pertinent to note that before the Assessing Officer as well as CIT(A), none appeared on behalf of the assessee and therefore ex-parte order has been passed by both the authorities. Needless to say, it will be appropriate to remand back the matter to the file of Assessing Officer for proper adjudication on the issues after taking cognizance of the evidences filed by the assessee. Needless to say, the assessee be given opportunity of hearing by following the principles of natural justice. 8. In the result, the appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open court on 15-09-2023 Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER Ahmedabad : Dated 15/09/2023 आदेश क त ल प अ े षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील य अ धकरण, अहमदाबाद