Mohammedsiddiq Usmanbhai Chaus, Ahmedabad V. The Income Tax Officer, Ward-1(2)(3), Ahmedabad

ITA 81/AHD/2023

AI Insights

This case involves an appeal by Mohammedsiddiq Usmanbhai Chaus against the order of the National Faceless Appeal Centre (NFAC), Delhi, which upheld the additions made by the Assessing Officer (AO) for the assessment year 2011-12. The additions included unexplained income, profit on share transactions not offered to tax, and unexplained receipt from the sale of immovable property. The CIT(A) dismissed the appeal on the grounds of non-appearance without adequately addressing whether a notice of hearing was served. The Tribunal found that the assessee was not given a proper opportunity of hearing and remanded the case back to the CIT(A) for a decision on the merits with the new evidence provided.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 131573 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 27-08-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 06-02-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Additional evidence; Tax effect
• Section: 148; 142(1)

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH Before: Ms. Suchitra Kamble, Judicial Member Mohammedsid diq Us man bhai Chaus, 1902, Hajira, Hajira’s P ole, Kalu pur Tower Ro ad, Ah medabad PAN: AC RPC9 549H (Appellant) Vs The Income Tax Officer, Ward-1(2)(3), Ah med abad, (Resp ondent) Asses see b y : Shri Tej Sha h, Advo cate Revenue by : Shri Yogesh M ishra, Sr. D. R. Date of hearing : 28-08 -2 023 Date of pronouncement : 13-09 -2 023 आदेश/ORDER This is an appeal filed against the order dated 29-11-2022 passed by National Faceless Appeal Centre (NFAC), Delhi for assessment year 2011- 12. 2. The grounds of appeal are as under:- ITA No. 81/Ahd/2023 Assessment Year 2011-12 I.T.A No. 81/Ahd/2023 A.Y. 2011-12 Page No. Mohammedsiddiq Usmanbhai Chaus vs. ITO 2 Sl. No. Grounds of Appeal Tax effect relating to each Ground of Appeal 1 The Ld. CIT(A) erred in law in upholding the order of the AO in making addition of Rs. 6,21,399/- being bogus LTCG upon sale of shares of M/s Radhe Developers Ltd. 2 The Ld. CIT(A) erred in law in upholding the order of the AO in making addition of Rs. 6,17,857/- being profit on sale of shares on BSE. 3 The Ld. CIT(A) erred in law in upholding the order of the AO in making addition of Rs. 7,00,000/-being sale consideration received upon sale of immovable Rs. 19,39,256/- 4 Total tax effect (see note below) Rs. 9,82,450/- 3. The assessee filed original return of income on 29-09-2011 declaring total income of Rs. 1,53,510/-. The case was reopened for assessment after recording reasons and notice u/s. 148 of the Income Tax Act dated 27-03- 2018 was issued and duly served upon the assessee. In response to the notice u/s. 142(1) dated 05-10-2018, the assessee filed his return for assessment year 2011-12 in response to notice u/s. 148. The assessee derived income under salary and assessee has a proprietary concern in the name of M/s. M.S. Graphics. After taking cognizance of the details, the Assessing Officer made addition of Rs. 6,21,399/- as unexplained income, I.T.A No. 81/Ahd/2023 A.Y. 2011-12 Page No. Mohammedsiddiq Usmanbhai Chaus vs. ITO 3 addition of Rs. 6,17,857/- as profit on share transaction not offered to tax and addition of Rs. 7,00,000/- as unexplained receipt from sale consideration. 4. Being aggrieved by the assessment order, the assessee field appeal before the ld. CIT(A). The ld. CIT(A) dismissed the appeal of the assessee. 5. The ld. Authorized Representative submitted that the Assessing Officer as well as the CIT(A) has not given proper opportunity of hearing to the assessee and in fact CIT(A) has dismissed the appeal on the ground of dismiss in limine therefore the Authorized Representative submitted that the assessee be given opportunity to file evidences before the Revenue authorities and matter be adjudicated on merit. 6. The ld. Departmental Representative relied upon the assessment order and the order of ld. CIT(A). 7. Heard both the sides and perused all the relevant materials available on record. It is pertinent to note that the ld. CIT(A) has dismissed the appeal for non-appearance without making any comment as to whether the notice of hearing was served to the assessee or not. There is discussion in the order related to the merits of the case. From the perusal of the records, it appears that the assessee has filed certain additional evidences before the Tribunal which requires to be verified. Therefore, it will be appropriate to remand back the matter to the file of ld. CIT(A) for proper adjudication of the evidences and decide the issues contested in the appeal on merits as per law. I.T.A No. 81/Ahd/2023 A.Y. 2011-12 Page No. Mohammedsiddiq Usmanbhai Chaus vs. ITO 4 The additional evidence is admitted. 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 13-09-2023 Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER Ahmedabad : Dated 13/09/2023 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