Angadiya Rameshbhai Kantilal, Ahmedabad V. ACIT, Central Circle-2(1), Ahmedabad

ITA 350/AHD/2022

AI Insights

The case involves an appeal by Angadiya Rameshbhai Kantilal against the order of the CIT(A)-12, Ahmedabad, which confirmed the addition of Rs.16,67,600 as unexplained money under Section 69A read with Section 115BBE of the Income Tax Act, 1961. The addition was based on a statement from Ketul Babulal Patel, who was involved in a Hawala activity and mentioned the cash amount belonging to the assessee's firm. The Income Tax Appellate Tribunal (ITAT) found that the CIT(A) did not consider the assessee's cash book during the confirmation of the addition and decided to remand the case for further examination of the provided documents.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129371 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 31-01-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 11-09-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 2; 142(1); 133A; 250; 143(2); 69A; 139(1)

Judgement Text

ITA No.350/Ahd/2022 Assessment Year: 2019-20 Page 1 of 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH, AHMEDABAD BEFORE Ms. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No.350/Ahd/2022 Assessment Year: 2019-20 Angadiya Rameshbhai Kantilal, vs. Asstt. Commissioner of Income Tax 187, Moti Nehalchand Ni, Central Circle – 2(1), Khadki, Near Doshiwala Ni Pole, Ahmedabad. Zaveri, Ahmedabad – 380 -001. [PAN – ABIFA 0362 N] (Appellant) (Respondent) Assessee by : None Revenue by : Shri Ramesh Kumar, JCIT Date of hearing : 01.02.2023 Date of pronouncement : 15.02.2023 O R D E R This appeal is filed by the Assessee against order dated 03.08.2022 passed by the CIT(A)-12, Ahmedabad for the Assessment Year 2019-20. 2. The Assessee has raised the following grounds of appeal :- “1. The assessment order passed u/s.143(3) of IT Act by the Assessing officer and confirmed by the first appellate authority u/s. 250 is bad in law and deserved to be uncalled for. 2. The Assessing officer has erred in law and on facts in making addition of Rs.16,67,600/- towards unexplained money u/s.69A r.w.s. 115BBE of Income Tax Act, 1961 and same deserves to be deleted.” 3. The assessee filed return of income under Section 139(1) of the Income Tax Act, 1961 for A.Y. 2019-20 on 13.01.2020 declaring total income of Rs.2,76,210/-. Search action under Section 132A of the Act was carried out in the case of Ketual Babulal Patel and others vide warrant dated 06.11.2018. Satisfaction under Section 153C of the Act in case of the assessee was drawn by the Assessing Officer of the search party on 16.03.2020. Thereafter, the Assessing Officer of the assessee issued notice under Section 143(2) of the Act dated 29.09.2020. Satisfaction under Section 153C of the Act was drawn by the Assessing Officer on 29.01.2021 and notice under ITA No.350/Ahd/2022 Assessment Year: 2019-20 Page 2 of 3 Section 142(1) of the Act along with questionnaire was issued on 01.02.2020. The Assessing Officer observed that survey under Section 133A of the Act was carried out at the premises of Ketul Babulal Patel and during the survey, statement of Ketul Babulal Patel was recorded wherein he stated that Hawala activity (transfer of cash from one city to other cities) was being carried out at this premise and he receives an amount of Rs.8,500/- per month as salary. He was asked to explain about the cash amount of Rs.15,57,600/- claimed/belonging to his firm M/s. Angadiya Rameshbhai Kantilal. After taking cognisance of the statement and other relevant documents, the Assessing Officer made addition of Rs.16,67,000/- as unexplained cash found at Indore Branch under Section 69A read with Section 115BBE of the Act on substantive basis. 4. Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. At the time of hearing, none appeared on behalf of the assessee despite giving notices and the last notice was issued upon which the acknowledgement card has been received by the Registry with acknowledgement on behalf of the assessee. Therefore, we are proceeding on the basis of the submissions made by the assessee before the CIT(A) as well as before the Assessing Officer which are reproduced in the respective orders. 6. The Ld. DR submitted that the CIT(A) as well as the Assessing Officer has made addition on account of unexplained cash seized by the Authorities under Section 69A r.w.s. 115BBE of the Act. 7. Heard the Ld. DR and perused all the relevant material available on record. From the paragraph no.3.7.2 of the order of CIT(A) the assessee has submitted a purported copy of cash book for the period 01.04.2018 to 31.03.2019 of Ahmedabad HO as well Indore Branch Office which was not produced/available at the time of recording of the statement of Ketul Patel. The addition and the confirmation of the said addition was mainly on the basis of statement of Ketul Patel and the assessee’s copy of cash book was not taken into account while confirming the same addition by the CIT(A). Therefore, it will be appropriate to remand back the issue to the file of the ITA No.350/Ahd/2022 Assessment Year: 2019-20 Page 3 of 3 CIT(A) for proper adjudication and verification of the details filed by the assessee at the time of assessment proceedings as well as before the CIT(A). Needless to say, the assessee be given opportunity of hearing by following the principles of natural justice. 8. In the result, appeal of the assessee is partly allowed for statistical purpose. Order pronounced in the open Court on this 15 th day of February, 2023. Sd/- (SUCHITRA KAMBLE) Judicial Member Ahmedabad, the 15 th day of February, 2023 PBN/* 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