Vaibhavkumar Rohitbhai Patel, Vadodara V. The ITO, Ward-1(2)(5), Vadodara

ITA 573/AHD/2022

AI Insights

The case involves Vaibhavkumar Rohitbhai Patel, who appealed against the order of the CIT(A), National Faceless Appeal Centre, Delhi, concerning the Assessment Year 2010-11. The primary contention was the CIT(A)'s failure to consider the appellant's adjournment request and the misinterpretation of bank transactions related to the appellant's visa application process. The Assessing Officer had treated substantial bank deposits as undisclosed income, leading to an assessment under Section 144 read with Section 147 of the Income Tax Act, 1961. The Tribunal found procedural lapses in the CIT(A)'s handling of the appeal and remanded the case for a comprehensive re-evaluation.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129447 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 22-02-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 25-12-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURAJ BHAN GARWAL
• Assessee Lawyers: VAIBHAVKUMAR R. PATEL
• Keywords: Income from undisclosed sources; Principle of natural justice
• Section: 147; 148; 144; 142(1); 139(1)

Judgement Text

ITA No.573/Ahd/2022 Assessment Year: 2010-11 Page 1 of 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH, AHMEDABAD BEFORE Ms. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No.573/Ahd/2022 Assessment Year: 2010-11 Vaibhavkumar Rohitbhai Patel, vs. Income Tax Officer, D-55, Lalitanagar Society, Ward – 1(2)(5), Vadodara. Rajesh Tower Road, Gotri (Gujarat) – 390 021 [PAN – BCAPP 4004 Q] (Appellant) (Respondent) Assessee by : Shri Vaibhavkumar R. Patel, (Assessee) Revenue by : Shri Suraj Bhan Garwal, Sr. DR Date of hearing : 23.02.2023 Date of pronouncement : 24.02.2023 O R D E R This appeal is filed by the Assessee against order dated 28.10.2022 passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the Assessment Year 2010-11. 2. The Assessee has raised the following grounds of appeal :- “1. On the facts and in the circumstances of the case the Ld. CIT(A) has not considered the adjournment filed by the appellant on 25.10.2022 against the notice dated on 19.10.2022 and the Ld. CIT(A) has passed the order mentioning that “no written submissions/information/documents have been received till date from the appellant nor any adjournment sought” . 2. The Ld. CIT(A) has considered only credit side of the bank account totaling Rs.14,03,000/- while ignoring the cash withdrawal made of Rs.6,07,800/- from the same bank account. 3. The Ld. CIT(A) has also not considered the internal transferred of Rs.1,15,000/- from Bank of Baroda A/c. to Union Bank Account A/c. of the appellant. 4. The remaining cash deposit of Rs.7,76,000 (14,03,000 – 5,12,000 – 1,15,000 = 7,76,000/-) is not actually the income of the appellant but the same has been borrowed from appellant’s mother and his friends/relatives due to visa purpose only.” ITA No.573/Ahd/2022 Assessment Year: 2010-11 Page 2 of 3 3. No return of income was filed under Section 139(1) of the Income Tax Act, 1961. As per information on record, the Assessing Officer observed that the assessee deposited cash amounting to Rs.12,43,000/- in Savings Bank account with Union Bank of India during the Financial Year 2009-10. The case was reopened and notice under Section 148 of the Act was issued on 26.03.2017 and served upon the assessee. The assessee was supposed to file his return of income but no return for Assessment Year 2010-11 was filed. Therefore, notice-cum-questionnaire under Section 142(1) of the Act was issued on 13.09.2017 and was duly served. The assessee did not comply with the said notice. Further, notices were issued but the same was not complied by the assessee. The Assessing Officer observed that the details of assessee’s Savings Bank Account for the period 01.04.2009 to 31.03.2010 were collected and it was noticed that the assessee deposited cash amounting to Rs.12,43,000/- and other transfer/clearing/interest entries totalling to Rs.1,60,018/-. The assessment was passed under Section 144 read with Section 147 of the Act and the Assessing Officer made addition of Rs.14,03,018/- thereby treating the deposits in cash and other than cash in bank account as income from undisclosed sources. 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. The party in person/assessee submitted that the assessee was a student at that time and intended to go out of India for study purpose and hence for Visa purpose the assessee was required to show balance in his bank account. Therefore, the assessee called out for funds from his mother, friends and relatives for the purpose of balance showing in his account. The assessee further submitted that the amount so deposited had been later withdrawn and paid back to the persons from whom the said amount had been taken. The assessee further submitted that during the assessment proceedings, the assessee was not aware about the intricacies of law and, therefore, could not attend the proceedings. As regards the proceedings before the CIT(A), the assessee has asked to adjourn the matter to 27.10.2022 but the CIT(A) without giving opportunity of hearing dismissed the appeal of the assessee. 6. The Ld. DR relied upon the Assessment Order and the order of the CIT(A). ITA No.573/Ahd/2022 Assessment Year: 2010-11 Page 3 of 3 7. Heard both the parties and perused all the relevant material available on record. It is pertinent to note that the CIT(A) has not given sufficient opportunity to the assessee for pleading his case on merit and, therefore, it will be appropriate to remand back the entire issue to the file of the CIT(A) for proper adjudication of the issues contested therein on merit. The assessee has filed certain additional evidences before the Tribunal which are admitted and the same may be taken into consideration by the CIT(A) at the time of adjudication. Needless to say the assessee be given opportunity of hearing by following the principles of natural justice. Appeal of the assessee is, therefore, partly allowed for statistical purpose. 8. In the result, appeal filed by the assessee is partly allowed for statistical purpose. Order pronounced in the open Court on this 24 th day of February, 2023. Sd/- (SUCHITRA KAMBLE) Judicial Member Ahmedabad, the 24 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