Vallabhbhai K. Borad, Tal. Visavadar, Dist. Junagadh V. Income Tax Officer, Ward-1, Patan

ITA 900/AHD/2023

• Counselvise Citation: [2024] 130 COUNSELVISE.COM (IT) 1417 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 17-03-2024
• Assessment Year: 2012-2013
• Appeal Filed On: 08-11-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NITIN VISHNU KULKARNI
• Assessee Lawyers: VIMAL DESAI
• Section: 147; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER & Ms. MADHUMITA ROY, JUDICIAL MEMBER आयकर अपील सं./I. T. A. No . 900/Ahd/20 23 ( नधा रण वष / As sess ment Year : 2012 -1 3) V ll a bh bh ai K . Bo r a d A t. S ar s a i, Ta l. V is a va da r , Sa r s a i S. O . , Ju nag a d h – 36 21 2 0 बनाम/ Vs . In c o m e T ax Of f ice r W ar d 1 , P at a n थायी लेखा सं./जीआइआर सं./P A N / G I R N o . : A E N PB 6 9 2 0 M (Appellant) . . (Respondent) अपीलाथ ओर से /Appellant by : Shri Vimal Desai, A.R. यथ क ओर से/Respondent by : Shri Nitin Vishnu Kulkarni, Sr. DR D a t e o f H ea ri ng 18/03/2024 D a t e o f P r o n o u nc e me n t 20/03/2024 O R D E R PER Ms. MADHUMITA ROY - JM: Th e in stan t ap peal filed at the instance of the app ellant is directed against the order dated 26. 09. 2023 passed by the National Faceles s App eal Centre (NF AC), Delhi, arising out of the order dated 08. 11.2 019 passed by th e ITO, Ward-5, Patan under Section ITA No. 900/Ahd/2023 (Vallabhbhai K. Borad vs. ITO) A.Y.– 2012-13 - 2 – 144 r. w. s. 147 of the Income Tax Act, 1961, (hereinafter referred to as ‘the Act’) for Asse ss me nt Year 2012 -1 3. 2. Th e Ld. AO has made an add itio n of Rs. 20, 15 ,000/- on account of u nexplained cash depo sit and further addition o f Rs. 6, 04, 5 00/- on accoun t of und isclo sed interest inco me. Su ch ord er passed by the Ld. AO is an ex p arte one under Sectio n 144 r. w. s. 147 o f the Act as none appeared on behalf of th e appellant in spite of several no tices were served u pon h im. 3. Th e case of the app ellant is this th at th e appellant is agriculturist frequently has withdrawn cash fro m Den a Ban k in ord er to give ad van ces to fa rmer s w ho happen s to be h is relatives or family friend s for agricultural purposes. Su ch ad vance as and when received back, the sa me were ag ain depo sited in the said bank account. The ap pellan t b efore the Ld. CIT(A) s ubmitted the neces sary exp lanation in supp ort of this ca se alon gwith several docu men ts wh ich are also filed befo re us including the land holding proof, the co py of bank statements for F. Y. 2010 -11 and 2011-12 , d ata-wise cash flow state men t showing cash dep osit, cash withd rawals and availab le cash in hand, were not considered in its prop er perspective. No delib eration has been mad e by th e Ld. CIT(A) o n th ese evidences add uced before hi m. Neith er any rema nd repo rt was called for by the Ld. CIT(A). On th e contrary, the ad dition made b y the Ld. AO w as co n firmed which is no t in consonance with the princip le o f natural justice ITA No. 900/Ahd/2023 (Vallabhbhai K. Borad vs. ITO) A.Y.– 2012-13 - 3 – which further ren ders the order unsustainab le, as the crux of the sub mi ssion mad e b y the Ld. AR. Howev er, in order to get the issue decided in its proper perspective, the Ld. AR fu rther pray s fo r setting aside the issues to th e file o f the Ld. AO. On the contrary, the Ld. DR relied upon the o rders pass ed by the authorities belo w. 4. Hav ing heard th e Ld. Co unsels app earing fo r the par ties and having regard to th e facts and circu mstance s o f the case, particularly, necessary ex planation bein g rendered by the asses see before the Ld. CIT(A) in order to justify the cash d eposit which alleged to hav e been unexplain ed that to o with corrob orating evidences as indicated hereinab ove, the order passed b y the Ld. CIT(A) see ms to be a product of no n-application o f mi nd, arbitrary and foun d to be bad in law. Thus, for the ends o f jus tice, we find it fit and p ro per to set asid e the is su e to the file of th e Ld. AO, as th e Ld. AO passed an order under Section 147 r. w. s. 144 of the Act an d fu rther th at even after receiving the additional evidences and th e necessar y explan ations made by the app ellant, th e Ld. CIT(A) has n ot called for any remand repo rt. We, thus, set aside th e issue to the fi le of the Ld . AO for adjudication afresh on the same on merit upo n granting o pportunity of bein g heard to the appellant and upon considering the evidence on records or any other evidence which the ap pellan t may ch oose to fil e at th e ti me of h earing of th e matter. We also make i t cl ear , that i n t he event the ITA No. 900/Ahd/2023 (Vallabhbhai K. Borad vs. ITO) A.Y.– 2012-13 - 4 – asses see fails to co-operate with th e Ld. AO, th e au thority will be at liberty to p ass orders strictly in accordan ce with law. 5. In the result, appeal preferred b y the appellant is allowed fo r statistical p urposes. This Order pronounced on 20/03/2024 Sd/- Sd/- (WASEEM AHMED) (MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 20/03/2024 S. K. SINHA True Copy आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं धत आयकर आय ु त / Concerned CIT 4. आयकर आय ु त(अपील) / The CIT(A)- 5. "वभागीय &त&न ध, आयकर अपील)य अ धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड/ फाईल / Guard file. आदेशान ु सार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपील$य अ%धकरण, अहमदाबाद / ITAT, Ahmedabad