JAYSHRIBEN VINODBHAI PRAJAPATI L/H OF VINODBHAI GANESHBHAI PRAJAPATI,AHMEDABAD V. ITO, WRAD-3(2)(5), AHMEDABAD

ITA 149/AHD/2018

AI Insights

This case involves an appeal by Jayshriben Vinodbhai Prajapati, the legal heir of the deceased Vinodbhai Ganeshbhai Prajapati, against the order of the Commissioner of Income Tax (Appeals)-7, Ahmedabad. The original dispute arose from an exparte assessment order under section 144 of the Income Tax Act, 1961, for the Assessment Year 2013-14. The assessee had declared a total income of Rs. 68,900, which included unexplained cash deposits and a claim of exemption on land transactions that were scrutinized. The Assessing Officer made significant additions to the assessee's income, which were upheld by the CIT(A). The tribunal, after considering the submissions and the materials provided, decided to remand the case back to the JAO for a fresh assessment, highlighting the need for adherence to the principles of natural justice.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 474797 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 year(s) 9 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 20-08-2024
• Assessment Year: 2013-2014
• Appeal Filed On: 15-01-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Principle of natural justice
• Section: 144

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “B” BENCH Before: Shri T.R. Senthil Kumar, Judicial Member And Shri Narendra Prasad Sinha, Accountant Member Jayshriben Vinodbhai Prajapati L/h of Vinodbhai Ganeshbhai Prajapati, 186, Prajapati Vas, Moti Devti, Tal: Sanand, Ahmedabad-382213 PAN: BRCPP1274R (Appellant) Vs The ITO, Ward-3(2)(5), Ahmedabad (Respondent) Assessee Represented: Shri S.N. Divetia, A.R. Revenue Represented: Shri C Dharnidas V.S., Sr.D.R. Date of hearing : 20-08-2024 Date of pronouncement : 04-11-2024 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This appeal is filed by the Assessee as against the appellate order dated 03.10.2017 passed by the Commissioner of Income Tax (Appeals)-7, Ahmedabad arising out of the exparte assessment order passed under section 144 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2013-14. ITA No. 149/Ahd/2018 Assessment Year 2013-14 I.T.A No. 149/Ahd/2018 A.Y. 2013-14 Page No Jayshirben Vinodbhai Prajapati L/H Vinodbhai Ganeshbhai Prajapati vs. ITO 2 2.The brief facts of the case is that the assessee is an individual filed his Return of Income for the Asst. Year 2013-14 on 16-12- 2014 declaring total income of Rs. 68,900/-. The case was selected for scrutiny assessment, since unexplained cash deposits in the bank account as well as claim of exemption of Rs.61,52,600/- on purchase of land bearing Survey No. 171 at Chaloda as against Short Term Capital Gain on sale of land bearing Survey No. 200/2 at Dholka. 2.1. During the course of assessment proceedings, the Assessing Officer issued various notices to the assessee calling him to explain cash deposits in bank account and the sale of immovable property. However there was neither response from the assessee nor filed any details before the A.O., thereby the Assessing Officer made addition u/s. 68 of Rs.22,00,000/- on cash deposits and addition on account of Short Term Capital Gain of Rs. 1,03,90,740/- and demanded tax thereon. 3. Aggrieved against the same, assessee filed an appeal before Ld. CIT(A). The Ld. CIT(A) confirmed the addition of cash deposits of Rs.22,00,000/- since the assessee has not filed any additional evidence under Rule 46A of the I.T. Rules. Further the Authorized Representative vide his letter dated 22-09-2017 has not pressed ground no. 2 namely addition on account of STCG thereby the second ground also dismissed. 4. Aggrieved against the same, the assessee filed this present appeal before us on 15-01-2018. It is thereafter the assessee I.T.A No. 149/Ahd/2018 A.Y. 2013-14 Page No Jayshirben Vinodbhai Prajapati L/H Vinodbhai Ganeshbhai Prajapati vs. ITO 3 expired on 05-10-2023 and the present Legal Heir is substituted in the place of the deceased assessee. 5. Ld. Counsel Shri S.N. Divetia appearing for the assessee strongly contested without any instruction from the assessee, the Authorized Representative vide his letter dated 22-09-2017 not pressed the ground no. 2 before Ld. CIT(A), which is not binding upon the assessee. Therefore the Legal Heir being given another opportunity of hearing on the additions made by the A.O. which was confirmed by Ld. CIT(A). Ld. Counsel also relied upon few case laws in support of his arguments. It is seen from record that this Tribunal had called for information from the Department, the so called letter dated 22-09-2017 by the Authorized Representative who appeared before Ld. CIT(A). The Revenue vide its letter dated 26-12-2022 furnished copy of the letter dated 22-03-2017 by the A.R. as well as order sheet entries made before Ld. CIT(A), the same were furnished to the assessee also. 6. We have heard rival submissions and perused the materials placed on record. The assessee has filed a detailed Paper Book running to 129 pages including the Cash Deposits, Bank Statements, Sale Deed dated 22-03-2013 and Purchase Deed dated 07-02-2013. Since the assessee has not appeared before the A.O. and substantial additions were made by the A.O. without materials on record. Therefore in the interest of Principle of Natural Justice, we deem it fit to set aside the matter back to the file of Jurisdictional Assessing Officer (JAO) to consider the case on merits by giving one more opportunity of hearing to the Legal Heir I.T.A No. 149/Ahd/2018 A.Y. 2013-14 Page No Jayshirben Vinodbhai Prajapati L/H Vinodbhai Ganeshbhai Prajapati vs. ITO 4 of the assessee. Needless to say, the assessee should cooperate by furnishing all required details before the JAO to pass order on merits of the case. 7. In the result, the appeal filed by the Assessee is allowed for statistical purpose. Order pronounced in the open court on 04-11-2024 Sd/- Sd/- (NARENDRA PRASAD SINHA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 04/11/2024 आदेश क\u0006 \u0007\bत ल\fप अ\u000fे\fषत / 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\u0012य अ\u0013धकरण, अहमदाबाद "