Bhavikaben Girishbhai Shah, Ahmedabad V. The Dy.CIT, Circle-1(1)(2), Ahmedabad

ITA 94/AHD/2023

AI Insights

This case involves an appeal by Bhavikaben Girishbhai Shah against the order of the CIT(A), National Faceless Appeal Centre, Delhi, which confirmed an addition of Rs.27,32,607 as undisclosed income for the Assessment Year 2012-13. The addition was initially made by the Deputy Commissioner of Income Tax (DCIT) based on transactions in shares and bonds that were not reported in the income tax return. The assessee contended that she was not given a fair opportunity to present her case at both the assessment and appellate stages. The Tribunal noted the absence of comments on the service of statutory notices and the lack of merit-based discussion in the CIT(A)'s order, leading to the decision to remand the case for a thorough re-examination.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129479 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 22-08-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 13-02-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 147; 148; 144

Judgement Text

ITA No.94/Ahd/2023 Assessment Year: 2012-13 Page 1 of 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH, AHMEDABAD BEFORE Ms. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No.94/Ahd/2023 Assessment Year: 2012-13 Bhavikaben Girishbhai Shah, A-4, Rajharsh, Ellis Bridge, Ahmedabad – 380 006. [PAN – AGSPS 6478 C] Vs. Dy. Commissioner of Income Tax, Circle – 1(1)(2), Ahmedabad. (Appellant) (Respondent) Assessee by Shri Aman K. Shah, AR Revenue by Shri Santosh Kumar, Sr. DR Da te o f He a r in g 23.08.2023 Da te o f P ro n o u n ce m e n t 30.08.2023 O R D E R This appeal is filed by the Assessee against order dated 02.01.2023 passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the Assessment Year 2012-13. 2. The Assessee has raised the following grounds of appeal :- “1. The Learned CIT(A) erred in law and on facts in confirming addition of Rs.27,32,607/- made by the learned DCIT as undisclosed income. The addition confirmed by the learned CIT(A) deserves to be deleted. The same be deleted now. 2. The Learned CIT(A) has erred in not properly appreciating the facts, various submissions, explanations and information submitted by the appellant during the assessment proceedings which ought to have been considered in proper perspective before passing the impugned order 3. The order passed by the Learned CIT(A) is invalid and bad in law as the appellant could not make submissions for justifying the claim of lower agricultural expenditure. It be so held now.” 3. On the basis of NMS information, the Assessing Officer made observation that the assessee has made transaction in shares with Bombay Stock Exchange of Rs.10,16,750/- and also acquired bonds/debentures amounting to Rs.15,00,000/- during the year but did not file her return of income in the relevant ITA No.94/Ahd/2023 Assessment Year: 2012-13 Page 2 of 3 Assessment Year. The case was reopened under Section 147 of the Income Tax Act, 1961 after recording proper reasons and taking approval from the appropriate authority. Notice under Section 148 of the Act was issued and in response to the said notices the assessee did not file her return of income or any submissions and, therefore, the Assessing Officer passed order under Section 144 of the Act and made addition of Rs.27,32,607/- in respect of undisclosed income in relation to profit derived from trading of securities, sale of bonds and sale of shares. 4. Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) has also passed ex-parte order without taking cognisance of the adjournment application filed by the assessee. The CIT(A) dismissed the appeal of the assessee. 5. The Ld. AR submitted that since the assessee has not been given opportunity of hearing either by the Assessing Officer or by the CIT(A), the matter may be remanded back to the file of the Assessing Officer for deciding the issues on merit and allow the assessee to file the evidences to that extent. The Ld. AR submitted that due to lack of knowledge regarding the details of filing income tax returns, the assessee could not file the relevant documents before the Tax Authorities for which the detailed affidavit was filed by the assessee. 6. The Ld. DR relied upon the Assessment Order and the order of the CIT(A) and further submitted that despite giving opportunities, the assessee failed to present her case before the Revenue Authorities as well as before the Appellate Authorities. 7. Heard both the parties and perused all the relevant material available on record. It is pertinent note that the assessment order as well as the order of the CIT(A) has quoted the issuance of statutory notice but has not commented whether the same were served or not. The CIT(A) has not commented anything on merit and dismissed the appeal in limine. Therefore, in the interest of justice, it will be appropriate to remand back this matter to the file of the Assessing Officer and the Assessing Officer is directed to take evidences/details on record and after verifying the same adjudicate the assessee’s case as per law. Needless to say, the assessee be given opportunity of hearing by following the principles of natural justice. Appeal of the assessee is thus partly allowed for statistical purpose. ITA No.94/Ahd/2023 Assessment Year: 2012-13 Page 3 of 3 8. In the result, appeal filed by the assessee is partly allowed for statistical purpose. Order pronounced in the open Court on this 30 th August, 2023. Sd/- (SUCHITRA KAMBLE) Judicial Member Ahmedabad, the 30 th day of August, 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