The DCIT, Central Circle-2(4), Ahmedabad V. Amitava Samanta, Ahmedabad

ITSSA 13/AHD/2018

AI Insights

The case involves an appeal by the Revenue against the order of the Commissioner of Income Tax (Appeals)-13, Ahmedabad, which had deleted the addition of Rs.2,44,80,200 as unaccounted investment in property by the assessee, Amitava Samanta. The addition was initially made by the Assessing Officer following a search and survey action under sections 132 and 153A of the Income Tax Act, 1961, respectively. The CIT(A) deleted the addition on the grounds that the investment was made by India Green Reality Pvt. Ltd. (IGRPL), and the payments were already subject to addition in the hands of IGRPL. The Revenue challenged this decision, arguing that the CIT(A) should not have deleted the addition without disposing of the related appeal of IGRPL, which was still pending.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 114137 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 year(s) 2 month(s) 23 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 28-03-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 22-03-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 04-01-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Unexplained investment; Additional evidence; Set aside
• Section: 132; 144; 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH Before: Smt. Annapurna Gupta, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member The DCIT, Central Circle-2(4), Ahmedabad (Appellant) Vs Amitava Samanta C/o. India Green Reality Pvt. Ltd. A/64-63, Silver Arc, B/h Town Hall, Ellisbridge, Ahmedabad PAN: BCQPS4197D (Respondent) Assessee Represented: None Revenue Represented: Shri Vijay Kumar Jaiswal, CIT-DR Date of hearing : 23-03-2023 Date of pronouncement : 29-03-2023 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This appeal is filed by the Revenue as against the Appellate order dated 27.10.2017 passed by the Commissioner of Income Tax (Appeals)-13, Ahmedabad, arising out of the Assessment order passed under section 144 r.w.s. 153A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year (A.Y) 2012-13. IT(SS)A No. 13/Ahd/2018 Assessment Year 2012-13 I.T(SS)A No. 13/Ahd/2018 A.Y. 2012-13 Page No DCIT vs. Amitava Samanta 2 2. The brief fact of the case is that a search action u/s. 132 of the Act was carried out in the case of India Green Reality Pvt. Ltd. Group on 15.03.2013. The assessee is one among the director of the above Company. The assessee was issued with 153A notices which were returned back unserved with postal remark “left” and “No such person on this address and hence not known”. 3. During the course of survey action in the premises of M/s. India Green Reality Pvt. Ltd., a copy of the Development Agreement dated 15.08.2011 was impounded which is to develop land belonging to the assessee measuring 34 bighas 4 cottah situated in Mouza- Raipur, Kalikapur-II, Sonarpur, Distt. West Bengal. 3.1. During the course of search action, the assessee was asked to explain the source of investment in the above lands. The assessee replied the land was purchased by the company in the name of the assessee and the entire amount was paid by the company. However no details of the transaction was submitted by the assessee. As the assessee was not cooperative by producing any evidences an ex- parte assessment order was passed adding Rs.2,44,80,200/- as unaccounted investment of the assessee. 4. Aggrieved against the same, the assessee filed an appeal before Ld. CIT(A). The Ld. CIT(A) deleted the addition on the ground that the contention of the assessee that payment towards acquisition of land are made by IGRPL and such payment is already subject matter of addition in the hands of IGRPL, hence no separate addition in the hands of the assessee for the present assessment I.T(SS)A No. 13/Ahd/2018 A.Y. 2012-13 Page No DCIT vs. Amitava Samanta 3 year is called for. Thereby the Ld. CIT(A) deleted the addition of Rs.2,44,80,200/- and partly allowed the assessee’s appeal. 5. Aggrieved against the same, the Revenue is in appeal before raising the following Grounds of Appeal: 1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has failed to appreciate the facts brought about by the Assessing Officer in his assessment order as well as the objections raised in the remand report and has admitted the additional evidences. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in law and/or on facts in deleting the addition made on account of unaccounted investment in property of Rs.2,44,80,200/-. 3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) ought to have upheld the order of the A.O. 4. It is, therefore, prayed that the order of the Ld. CIT(A) be set aside and that of the A.O. be restored to the above extent. 5.1. None appeared on behalf of the assessee in spite of various hearing notices which has duly served on the assessee. 6. The Ld. CIT-DR Mr. Vijay Kumar Jaiswal appearing for the Revenue submitted thought the Ld. CIT(A) deleted the addition but the appeal filed by the IGRPL is still pending adjudication before Ld.CIT(A)-13, Ahmedabad vide Appeal No. CIT(A)/Ahd- 13/10515/2016-17 for the Assessment Year 2012-13. Without disposing the appeal of the company IGRPL, the Ld. CIT(A) is not correct in giving relief to the assessee on the ground the investment is made by the IGRPL. Therefore requested to set aside the order passed by the Ld. CIT(A) and remanded the matter back to the file of the Ld. CIT(A)-13, Ahmedabad to decide along with the above appeal M/s. India Green Reality Pvt. Ltd. vide Appeal No. CIT(A)/Ahd-13/10515/2016-17 for the Assessment Year 2012-13. I.T(SS)A No. 13/Ahd/2018 A.Y. 2012-13 Page No DCIT vs. Amitava Samanta 4 7. We have gone through the materials available on record and found that the Ld. CIT(A) is not correct in deleting the addition on the ground that the Company has invested in the above property in the name of the assessee, when the company’s appeal is pending for adjudication before the very same Ld. CIT(A)13, Ahmedabad. 8. In the interest of justice, we thought it fit to set aside the appellate order passed by the Ld. CIT(A) with a direction to dispose of the appeal along with the appeal filed by M/s. India Green Reality Pvt. Ltd. vide Appeal No. CIT(A)/Ahd-13/10515/2016-17 for the Assessment Year 2012-13, by giving proper opportunity to the assessee. 9. In the result, the appeal filed by the Revenue is allowed for statistical purpose. Order pronounced in the open court on 29-03-2023 Sd/- Sd/- (ANNAPURNA GUPTA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER True Copy JUDICIAL MEMBER Ahmedabad : Dated 29/03/2023 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. 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