JUNED YUSUF SHETHWALA,VADODARA V. THE INCOME TAX OFFICER, WARD-3(1)(1), VADODARA

ITA 1550/AHD/2024

AI Insights

The case involves an appeal by Juned Yusuf Shethwala against the order of the National Faceless Appeal Centre (NFAC)/CIT(A), which confirmed additions made by the Assessing Officer under sections 69 and 250 of the Income Tax Act, 1961. The additions pertained to unexplained payments and investments, as well as a denial of deduction under Chapter VIA. The Assessing Officer had reopened the assessee's case based on AIR information and noted discrepancies in the documents provided regarding credit card payments and share transactions. The CIT(A) dismissed the appeal ex-parte without a detailed examination of the merits or the specific notices issued to the assessee. The Tribunal found that the CIT(A) had not adequately addressed the details filed by the assessee and thus remanded the case back for a thorough re-examination.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 29738 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 02-12-2024
• Assessment Year: 2010-2011
• Appeal Filed On: 28-08-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: N J VYAS
• Assessee Lawyers: VIPUL KHANDHAR
• Keywords: Unexplained cash credit; Unexplained investment
• Section: 250; 69

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद ᭠यायपीठ , अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “ SMC ” BENCH, AHMEDABAD ] BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER आयकर अपील सं./ITA No. 1550/AHD/2024 िनधाᭅरण वषᭅ/Asstt. Year: 2010-2011 Juned Yusuf Shethwala, 1/2 Outside Gajrawadi Police Choki, Wadi Navapura Naka Wadi, Vadodara-390012. PAN: BBNPS7003Q बनामVs . The Income Tax Officer, Ward-3(1)(1), Vadodara. (अपीलाथᱮ /Appellant ( ᮧ᭜यथᱮ /Respondent) Assessee by : Shri Vipul Khandhar, AR Revenue by : Shri N J Vyas, Sr. DR सुनवाई कᳱ तारीख/Date of Hearing : 02/12/2024 घोषणा कᳱ तारीख /Date of Pronouncement: 04/12/2024 आदेश/O R D E R PER SUCHITRA KAMBLE, JM: The captioned appeal has been filed at the instance of the Assessee against the order dated 30.03.2024 passed by the National Faceless Appeal Centre(NFAC)/CIT(A), arising in the matter of assessment order passed under s. 144(3) r.w.s 147 of the Income Tax Act, 1961 (here-in-after referred to as \"the Act\") relevant to the Assessment Year 2010-11. 2. The assessee has raised the following grounds of appeal: ITA No.1550/Ahd/2024 Asst. Year 2010-11 2 1. The learned CIT (Appeal), NFAC, Delhi erred in law and on facts in passing the order u/s 250 of IT Act, 1961 which is requested to be quashed. 2 The learned CIT (Appeal), NFAC, Delhi erred in confirming the addition of Rs.1417999/-being unexplained payment u/s 69 of IT Act, 1961. 3. The learned CIT (Appeal), NFAC, Delhi erred in confirming the addition of Rs.512050/- being unexplained investment u/s 69 of IT Act, 1961. 4 The learned CIT (Appeal), NFAC, Delhi erred in confirming the addition of Rs 30000/- being deduction under chapter VIA. 3. The assessee’s case was re-opened u/s.147 of the Act, on the basis of AIR information in possession with the Department. The assessee has paid Rs.32,32,572/- against the credit card bills and share transaction of Rs.8,71,152/- during the Assessment Year 2010-11. In response to notice u/s.148/142(1) of the Act, the CA of the assessee attended the assessment proceedings and furnished the details. The assessee derived income from trading of cloth and dress material. The Assessing Officer observed that the assessee has not furnished the substantial documents regarding the payment of credit card bills, investment in shares and deduction under chapter VIA. The assessee attended the hearing in response of show-cause notice dated 30.08.2017 but could not explained the same and subsequently the AO made the addition of Rs.14,17,999/- in respect of unexplained credit card payment of Rs.4,12,050/- and investment in shares and denial of deduction under chapter VIA amounting to Rs.30,000/-. 4. Being aggrieved by the assessment order, the assessee filed an appeal before the Ld.CIT(A). The Ld.CIT(A), dismissed the appeal of the assessee. 5. The Ld.AR submitted that the Ld.CIT(A) has passed ex-parte order, therefore, the matter may be remand back to the file of the Ld.CIT(A) for proper adjudication of the issue on merits. ITA No.1550/Ahd/2024 Asst. Year 2010-11 3 6. The Ld.DR relied upon the assessment order and the order of the Ld.CIT(A). 7. We have heard both the parties and perused the material available on record. It is pertinent to note that the Ld.CIT(A) has not mentioned in the order as to whether any specific notices on specified dates have been issued to the assessee or service of the notices were properly done or not. The order of the Ld.CIT(A) has not commented anything related to the details filed by the assessee before the AO and simply dismissed the appeal of the assessee as ex-parte without deciding it on merits. It will be appropriate to remand back the matter to the file of the Ld.CIT(A) for proper adjudication and verification of the evidences as per the Income Tax statue. Needles to say, assessee be given opportunity of hearing by following the principle of natural justice. Hence, the appeal of the assessee is partly allowed for statistical purposes. 8. In the result, the appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the Open Court on 04th December, 2024 at Ahmedabad. Sd/- Sd/- (MAKRAND VASNAT MAHADEOKAR) ACCOUNTANT MEMBER (SUCHITRA KAMBLE) JUDICIAL MEMBER (True Copy) अहमदाबाद/Ahmedabad, ᳰदनांक/Dated 04/12/2024 Manish, Sr. PS ITA No.1550/Ahd/2024 Asst. Year 2010-11 4 आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant 2. ᮧ᭜यथᱮ / The Respondent. 3. संबंिधत आयकर आयुᲦ / Concerned CIT 4. आयकर आयुᲦ ) अपील ( / The CIT(A)-(NFAC) 5. िवभागीय ᮧितिनिध , आयकर अपीलीय अिधकरण , राजोकट/DR,ITAT, Ahmedabad, 6. गाडᭅ फाईल /Guard file. आदेशानुसार/ BY ORDER, स᭜यािपत ᮧित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad "