Shri Dhirajlal A.Shah,HUF, Ahmedabad V. The Income tax Officer,Ward-10(2), Ahmedabad

ITA 425/AHD/2012

• Counselvise Citation: 42520514 RSA 2012
• Duration Of Justice: 3 year(s) 6 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 12-08-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 15-02-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH
• Assessee Lawyers: A L THAKKAR
• Keywords: Income from undisclosed sources; Opportunity of being heard; Principle of natural justice
• Section: 143(3); 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH AHMEDABAD , BEFORE SHRI G. D. AG RAWAL, VICE PRESIDEN T, AND SHRI S. S. GODAR A, JUDICIAL MEMBER . ITA. NO. 425 /AHD/201 2 (ASSES SMENT YEAR:200 8 - 0 9 ) DHIRAJLAL A. SHAH HUF 12, RAJKAMAL PARK SOCIETY, ST. XAVIERS SCHOOL ROAD, NAVRANGPURA, AHMEDABAD - 380009 A PPELLANT VS. THE INCOME TAX OFFICER, WARD - 10 ( 2 ), AHMEDABAD RESPONDENT PAN: AADHD1895F / BY ASSESSEE : SHRI A. L. THAKKAR, A.R. / BY REVENUE : SHRI DINESH SINGH, SR. D.R. / DATE OF HEARING : 12 . 0 8 .2015 / DATE OF PRONOUNCEMENT : 04 . 0 9 .2015 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 20 0 8 - 0 9 ARISE S FROM ORDER OF THE CIT(APPEALS) - XV I , AHMEDABAD, DATED ITA NO. 425 /AHD/201 2 , A.Y. 0 8 - 0 9 ( DHIRAJLAL A. SHAH HUF VS. IT O ) 2 NOVEMBER 18, 2011 PASSED IN APPEAL N O. CIT(A) - XV I / IT O/WD - 10 ( 2 )/ 592 / 10 - 11 , IN PROCEEDINGS U/S. 144 R.W.S. 143(3) OF THE INCOME TAX ACT, 1961, HERE AFTER THE ACT . 2. THIS APPEAL RAISES THE FOLLOWING GROUNDS: 1. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN PASSING AN EX PARTE ORDER WHICH IS ILLEGAL AND BAD IN LAW HEN C E THE SAME REQUIRES TO BE CANCELLED. 2. THE LEARNED C OMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN PASSING AN EX PARTE ORDER WITHOUT GIVING REASONABLE AND PROPER OPPORTUNITY OF BEING HEARD TO THE APPELLANT. HENCE THE SAME BEING AGAINST THE PRINCIPLES OF NATURAL JUSTICE AND LAW SHOULD BE CANCELLED. 3. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN PASSING AN EX PARTE ORDER I GNORING THE FACT THAT ALL THE THREE MATTERS OF THE SAID GROUP HAD BEEN FIXED ON 21.09.2011 AND ON THE SAME DATE THE WRITTEN SUBMISSIONS IN RESPECT OF THE TWO MATTER S HAD ALREADY BEEN FILED. THEREAFTER, ALL THE THREE MATTERS HAD BEEN FIXED ON 18.11.2011 AND ON THE SAID DATE THE SAME WERE ORALLY ADJOURNED. 3. THE ASSESSEE - AN HUF DERIVES INTEREST INCOME AND CAPITAL GAINS. IT FILED ITS RETURN ON 30.07.2008 ADMITTING IN COME OF RS.1,79,410/ - . THE ASSESSING OFFICER TOOK UP SCRUTINY. HE APPEARS TO HAVE ISSUED VARIOUS NOTICES U/S.142(1) R.W.S. 143(2) OF THE ACT. THE ASSESSEE DID NOT APPEAR. THIS MADE HIM TO INVOKE BEST JUDGMENT ASSESSMENT U/S. 144. HE NOTICED INTEREST I NCOME FROM SHRI DHIRAJLAL A. SHAH AND POST MASTER, NAVRANGPURA TO THE TUNE OF RS.1,65,787/ - AND RS.2,05,039/ - ; RESPECTIVELY. THE ASSESSING OFFICER SOUGHT FOR CLARIFICATION AS TO WHETHER THE ABOVE STATED GROSS INTEREST OF RS.3,70,826/ - STOOD ACCOUNTED FOR OR NOT IN COMPUTATION . HE WOULD ADD THE SAME AS INCOME FROM UNDISCLOSED SOURCES . THE CIT(A) HAS AFFIRMED ITA NO. 425 /AHD/201 2 , A.Y. 0 8 - 0 9 ( DHIRAJLAL A. SHAH HUF VS. IT O ) 3 THE ASSESSING OFFICERS ACTION IN HIS EX PARTE ORDER UNDER CHALLENGE. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE CASE FILE. THE RELEVANT FACTS AND CIRCUMSTANCES REVEAL THAT THE AUTHORITIES BELOW HAVE MADE THE IMPUGNED ADDITION QUOTING ASSESSEES FAILURE IN PROVING THAT THE IMPUGNED INTEREST INCOME STOOD DULY ACCOUNTED. T HIS PRESUMPTION DOES NOT DRAW SUPPORT FROM ANY MATERIAL ON RECORD. WE NOTICE THAT ASSESSEES COUNSEL HAD APPEARED IN THE LOWER APPELLATE PROCEEDINGS ON 21.09.2011. THEREAFTER, THE CIT(A) RECORDS HIS NON APPEARANCE ON 13.10.2011 AND 18.11.2011 FOR PROCEEDING EX PARTE. THE ASSESSEE DOES NOT SEEM TO BE AWARE OF ALL THESE DEV ELOPMENTS . WE FEEL IN THESE CIRCUMSTANCES THAT LARGER INTEREST OF JUSTICE WOULD BE MADE IN CASE THE MATTER IS RESTORED BACK TO THE ASSESSING OFFICER FOR A FRESH DECISION AS PER LAW. WE ORDER ACCORDINGLY. THE ASSESSEE IS DIRECTED TO COOPERATE. 5. THIS ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS THE 04 TH DAY OF SEPTEMBER , 201 5 . SD/ - SD/ - ( G. D. AGRAWAL ) ( S. S. GODARA ) VICE PRESIDENT JUDICIAL MEMBER AHMEDABAD: DATED 04/ 0 9 /2015 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO: - ITA NO. 425 /AHD/201 2 , A.Y. 0 8 - 0 9 ( DHIRAJLAL A. SHAH HUF VS. IT O ) 4 1. / REVENUE 2. / ASSESSEE 3. / CONCERNED CIT 4. - / CIT (A) 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE. BY ORDER / , / ,