Mahendrabhai Shantilal Patel, Ahmedabad V. DCIT, Central Circle-1(3), Ahmedabad

ITSSA 527/AHD/2019

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 2374 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 5 month(s) 19 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 13-05-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 01-05-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 24-11-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Document seized; Principle of natural justice; Accommodation entries; Documents seized; Set aside; Bogus
• Section: 132; 143(3); 153A; 72

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH Before: Shri T.R. Senthil Kumar, Judicial Member And Shri Narendra Prasad Sinha, Accountant Member Mahendrabhai Shantilal Patel D/41, Sahjanand Apartment, Nr. Sterling Hospital, Gurukul Road, Memnagar, Ahmedabad PAN: AVYPP7593G (Appellant) Vs The DCIT, Circle-1(3), Ahmedabad (Respondent) The ACIT, Central Circle- 4(1)(2), Ahmedabad (Appellant) Vs Dhruv Bhupendrabhai Patel Benefit House, City Bank Street, Municipal Market, C.G. Road, Ahmedabad PAN: AKAPP7408D (Respondent) Dhruv Bhupendrabhai Patel, Benefit House, City Bank Street, Municipal Market, C.G. Road, Ahmedabad PAN: AKAPP7408D (Appellant) Vs The DCIT, Circle-1(3), Ahmedabad (Respondent) Assessee Represented: Shri Vijay H. Patel, A.R. Revenue Represented: Shri Prathvi Raj Meena, CIT-DR Date of hearing : 02-05-2024 Date of pronouncement : 14-05-2024 IT(SS)A Nos: 521 to 527/Ahd/2019 Assessment Years: 2011-12 to 2017-18 IT(SS)A Nos: 528 to 534/Ahd/2019 Assessment Years: 2011-12 to 2017-18 IT(SS)A Nos: 537 to 540/Ahd/2019 Assessment Years: 2014-15 to 2017-18 I.T (SS).A Nos. 521 to 527/Ahd/2019 & Ors. A.Ys. 2011-12 to 2017-18 Page No Shri Mahendrabhai Shantilal Patel and Ors. vs. DCIT 2 आदेश/ORDER PER BENCH:- IT(SS)A Nos. 521 to 527/Ahd/2019. These appeals are filed by the Assessee as against the separate appellate orders all dated 12.09.2019 passed by the Commissioner of Income Tax (Appeals)- 11, Ahmedabad, arising out of the assessment orders passed under section 143(3) r.w.s. 153A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Years 2011-12 to 2017-18. Since common issue is involved in all these appeals, for the sake of convenience the same are disposed of by this common order. 2. The brief facts of the case is that the assessee is an individual and having five different PAN Numbers with different fake addresses. There was a search action u/s. 132 of the Act on 06.02.2017 and found many incriminating documents. Statement of the assessee u/s. 132(4) of the Act was recorded. The assessee never ever filed his Return of Income. The assessee was carrying out non-genuine business of providing accommodation entries and issuing of bogus bills. During the course of search proceedings, it was found that the assesse was using five different PANs for operating multiple concerns for providing accommodation entries and also opened multiple bank accounts in the name of the multiple concerns for providing accommodation entries. In response to 153A notice, the assessee field Nil Income. Detailed assessment order was passed making an addition of Rs. 161 crores and demanded tax thereon for the Asst. Year 2011-12. I.T (SS).A Nos. 521 to 527/Ahd/2019 & Ors. A.Ys. 2011-12 to 2017-18 Page No Shri Mahendrabhai Shantilal Patel and Ors. vs. DCIT 3 3. Aggrieved against the assessment order, the assessee filed an appeal before Ld. CIT(A), who also confirmed the demand made by the Assessing Officer and dismissing the appeal. 4. Aggrieved against the Appellate order, the assessee is in appeal before us raising the following Grounds of Appeal in ITA No. 521/Ahd/2019 for A.Y. 2011-12 (Grounds is identical in other years also, except change in figures) are as follows: 1) In law, on facts and in the circumstances of the case, the impugned assessment order passed u/s. 143(3) r.w.s 153A of the Act by the DCTT, CC. 1(3), Ahmedabad is against natural justice, bad in law and deserves to be cancelled. 2) On the facts and in the circumstances of the case, the Ld. CIT(A) has grossly erred in confirming addition on account of Unexplained amount of Rs.1,55,19,63,736/-. The A.O. may kindly be directed to delete such addition. 3) On the facts and in the circumstances of the case, the Ld. CIT(A) has grossly erred in confirming addition on account of Unexplained Amount of Rs.5,83,91,147 (Rs.3,10,39,275 + Rs.2,73,51,872). The A.O. may kindly be directed to delete such addition. 4) On the facts and in the circumstances of the case, the Ld. CIT(A) has grossly erred in confirming addition on account of Unexplained amount of Rs.31,09,19,135/-. The A.O. may kindly be directed to delete such addition. 4.1. It is seen from order sheet noting that the assessee is died on 23.10.2020 itself and the assessee has not impleaded the Legal Heir and also not filed Revised Form No. 36 before this Tribunal. Today is the 26 th time of hearing of this appeal, the position remains the same without impleading LR on record and no Revised Form No. 36 filed before us. I.T (SS).A Nos. 521 to 527/Ahd/2019 & Ors. A.Ys. 2011-12 to 2017-18 Page No Shri Mahendrabhai Shantilal Patel and Ors. vs. DCIT 4 4.2. In the previous hearing on 23-04-2024 the Bench noted the above position and passed the following order-sheet entry: “Ld. AR filed application seeking adjournment stating that the process for impleading Legal Heir of the assesseee is still pending. We have noted from the order sheet entries and adjournment application filed by the assesseee that the Ld. AR was aware of the fact of the assessee having expired since 10/08/2023 and was since then was seeking adjournment to bring the Legal Heir on record. Nothing has been brought before us showing any steps taken by the assessee for initiating this process. We therefore are not inclined to entertain the present appeal of the assessee. It appears to be a mere excuse for seeking adjournment. However, a short time is being granted to the Ld. Counsel to demonstrate whether any steps have been taken for bringing the Legal heir on record. If nothing in this regard is found to be done, the appeal of the assessee will be dismissed as infructuous. Ld. Counsel is given time till 02/05/2024 to take action with regards to bringing legal heir on record. Case is adjourned to 02/05/2024.” 5. Ld. Counsel Shri Vijay H. Patel appearing for the assessee submitted that the Legal Heir is 72 years old and non-cooperative. Therefore he is unable to bring the Legal Heir on record, thereby he could not file Revised Form No. 36 before the Tribunal. However he filed an Affidavit of the legal heir with copy of the death certificate of the assessee. 5.1. It is seen from the order-sheet noting that from 10.08.2023, there were request from the AR to bring on LR on record and to file Revised Form No. 36. However as on today no further improvement in impleading the Legal Heir on record. Thus we could not adjudicate the appeal on a dead person namely the assessee herein Shri Mahendrabhai Shantilal Patel. Therefore the appeals filed by the assessee are liable to be dismissed for not bringing Legal Heir on record. I.T (SS).A Nos. 521 to 527/Ahd/2019 & Ors. A.Ys. 2011-12 to 2017-18 Page No Shri Mahendrabhai Shantilal Patel and Ors. vs. DCIT 5 6. In the result, IT(SS)A Nos. 521 to 527/Ahd/2019 are hereby dismissed as not maintainable. 7. IT(SS)A Nos. 528 to 534/Ahd/2019 filed by the Revenue and IT(SS)A Nos. 537 to 540/Ahd/2019 are filed by the Assessee. These appeals are filed by the assessee Shri Dhruv Bhupendrabhai Patel for the Asst. Years 2011-12 to 2017-18, wherein protective additions were made in his hands and substantial additions were already made in the hands of his uncle Shri Mahendrabhai Shantilal Patel, who is deceased during pendency of the appeals before this Tribunal. 7.1. The Grounds of Appeal raised by the Revenue in IT(SS)A No. 528/Ahd/2019 for A.Y. 2011-12 (Grounds is identical in other years also, except change in figures) are as follows: 1. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs.31,09,19,135/- made on protective basis in the case of the assessee in view of the fact that addition has already been confirmed in the case of Shri Mahendra S Patel, Uncle of the assessee in spite of the fact that assessee failed to explain these entries contained in seized documents. 2. 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. 3. 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. 7.2. The Grounds of Appeal raised by the Assessee in IT(SS)A No. 537/Ahd/2019 for A.Y. 2014-15 (Grounds is identical in other years also, except change in figures) are as follows: 1. In law and in the circumstances of the case, the impugned order passed by the AO which is partly confirmed by the CIT(A) is against natural justice, bad in law and deserves to be cancelled. I.T (SS).A Nos. 521 to 527/Ahd/2019 & Ors. A.Ys. 2011-12 to 2017-18 Page No Shri Mahendrabhai Shantilal Patel and Ors. vs. DCIT 6 2. On the facts, in law and in the circumstances of the case, the Ld. CIT(A) has grossly erred in confirming the addition on account of Unexplained Investments u/s.69 of the Act of Rs. 27,00,000/-. The A.O. may kindly be directed to delete such addition. The appellant craves leave to add, alter, amend or withdraw any ground/s of Appeal on or before hearing of the appeal. 8. Since the additions made in the present appeals are only on Protective basis and Substantial additions are already made in the hands of Mahendrabhai Shantilal Patel, which was confirmed by Ld. CIT(A). Further appeals filed by Mahendrabhai Shantilal Patel are dismissed as not maintainable by this Tribunal, as the legal heirs were not brought on record. Consequently these appeals filed by the Revenue in IT(SS)A Nos. 528 to 534/Ahd/2019 and the appeals filed by the assessee in IT(SS)A Nos. 537 to 540/ Ahd/2019 in the case of Shri Bhupendrabhai Patel are hereby dismissed. Needless to say the Department is free to recover tax dues from respective assessee’s in the manner known to law. 9. In the result, all the appeals filed by the respective parties are hereby dismissed. Order pronounced in the open court on 14-05-2024 Sd/- Sd/- (NARENDRA PRASAD SINHA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER True Copy JUDICIAL MEMBER Ahmedabad : Dated 14/05/2024 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT I.T (SS).A Nos. 521 to 527/Ahd/2019 & Ors. A.Ys. 2011-12 to 2017-18 Page No Shri Mahendrabhai Shantilal Patel and Ors. vs. DCIT 7 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद