KAVITA ALVA,VADODARA V. THE ITO, WARD-2(1)(3), VADODARA

ITA 1409/AHD/2025

AI Insights

Kavita Alva, the appellant, contested a re-assessment order under sections 143(3) read with 147 of the Income Tax Act, 1961, for the assessment year 2012-13. The re-assessment was initiated based on information from Sahara India Finance Corporation Ltd., indicating undisclosed investments by the assessee. Initially, the Assessing Officer passed an ex-parte order adding Rs. 12,06,919 as unexplained investment under section 69 of the Act. The first appeal was dismissed due to the assessee's failure to provide necessary documents. The Tribunal, after reviewing the case and considering the documents presented by the Senior Departmental Representative, decided to remand the case for a fresh assessment, highlighting the importance of the principles of natural justice.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 838529 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 07-07-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KETAKI DESAI
• Assessee Lawyers: BHUPENDRA PARMAR
• Keywords: Principle of natural justice
• Section: 148; 143(3); 69

Judgement Text

" THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH BEFORE DR. BRR KUMAR, VICE PRESIDENT AND SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER Kavita Alva New Alka Restaurant Sandip Appt R C Dutt Road, Alkapuri, Vadodara-390007 PAN: ADDPA0481F (Appellant) Vs The ITO, Ward-2(1)(3) Vadodara (Respondent) Assessee by: Shri Bhupendra Parmar, A.R. Revenue by: Ms. Ketaki Desai, Sr. D.R. Date of hearing : 11-02-2026 Date of pronouncement : 17-02-2026 आदेश/ORDER PER TR SENTHIL KUMAR, JUDICIAL MEMBER: This appeal is filed by the assessee as against the appellate order dated 31-03-2025 passed by Addl/JCIT(A)-1 Bangalore against the re-assessment order passed u/s. 143(3) r.w.s. .147 of the Income Tax Act, 1961 relating to assessment year 2012-13. 2. Registry has noted that there is delay of 37 days in filing above appeal. The assessee explained that due to the fact that the former Consultant did not filed the appeal, it is thereafter the assessee engaged new Consultant, thereby delay of 37 days in ITA No. 1409/Ahd/2025 Assessment Year 2012-13 Printed from counselvise.com I.T.A No. 1409/Ahd/2025 Kavita Alva, A.Y. 2012-13 2 filing the appeal. Considering the reasons stated, the delay of 37 days in filing the appeal is condoned. 3. Brief facts of the case, the assessee is an individual. For the Assessment Year 2012-13, she filed her Return of Income on 28-03-2013 declaring total income of Rs. 9,23,770/-. The return was processed u/s. 143(1) of the Act. Thereafter, the return was reopened on the information gathered from M/s. Sahara India Finance Corporation Ltd., that the assessee made investment of Rs. 12,06,919/- during the Financial Year 2011-12 in various schemes of Sahara Group, whereas the assessee declared nil investment in the Return of Income. Therefore a notice u/s. 148 of the Act dated 27-03-2019 was served on the assessee. The assessee failed to appear before the Assessing Officer nor filed any Return of Income which has resulted in passing ex-parte reassessment order and making addition u/s. 69 of the Act of Rs. 12,06,919/-. 4. Aggrieved against the re-assessment order, the assessee filed an appeal. Ld. CIT(A) dismissed the appeal on the ground that in spite of several opportunities given, the assessee failed to submit supporting documents namely bank statements, source of such investments, therefore confirmed the additions made by the Assessing Officer. 5. Aggrieved against the appellate order, assessee is in appeal before us raising the following Grounds of Appeal: “All the investments are in assessee name made by herself in a daily recurring manner out of her household withdrawal from her business new alka at All alkapuri Vadodara. Investment is done. All investment is done. No Interest or principal amount is received back. Balance sheet and ledger accounts were produced which reflects lot of withdrawals. The money is accounted and accumulation of several years. All Investment was done from Printed from counselvise.com I.T.A No. 1409/Ahd/2025 Kavita Alva, A.Y. 2012-13 3 household savings only. the money is debited in personal capital account instead of Investment account. The assessee reserves its right to add delete amend alter and modify any other grounds of appeal.” 6. At the outset, when this matter was listed on 10-02-2026 the ld. counsel for the assessee submitted that there were materials available with the Assessing Officer to re-open the assessment but not furnished to the assessee, therefore requested for copies of the documents. In response, Ld. Sr. D.R. was directed to provide the documents from the concerned Assessing Officer. When the above appeal was listed for hearing on 11-02-2026. Ld. Sr. D.R. produced 12 pages namely Annexure-1 Karnataka Bank Certificate confirming non- issuance of alleged Cheque Numbers belonging to assessess’s Saving Bank account, Annexure-2 Bank statement of relevant period and Annexure-3 copy of AO’s record showing alleged Cheque Numbers and persons made investment in Sahara India Group. 6.1. Perusal of Annexure-1 namely Certificate from Karnataka Bank dated 10-02-2026 clearly states that non-issuance of specific (33) Cheque Numbers belonging to the assessee during the period from 07-06-2011 to 23-03-2012. Further both reassessment and appellate order are exparte orders and non- consideration of the bank statements and Karnataka Bank Certificate. 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 to give one more opportunity of hearing to the assessee and decide the case on merits while passing appropriate reassessment order. Needless to say the assessee should make use of this final opportunity and cooperate for passing reassessment order. Printed from counselvise.com I.T.A No. 1409/Ahd/2025 Kavita Alva, A.Y. 2012-13 4 7. In the result, the appeal filed by the Assessee is treated allowed for statistical purpose Order pronounced in the open court on 17-02-2026 Sd/- Sd/- (DR. BRR KUMAR) (TR SENTHIL KUMAR) VICE PRESIDENT True Copy JUDICIAL MEMBER Ahmedabad : Dated 17/02/2026 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. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद Printed from counselvise.com "