PANKAJKUMAR N. PATEL,AHMEDABAD V. THE ITO, WARD-1, PATAN

ITA 439/AHD/2024

AI Insights

This case involves an appeal by Pankajkumar N. Patel against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, concerning the Assessment Year 2012-13. The primary issues in the appeal included the legality of the reopening of the assessment under section 148 of the Income Tax Act, 1961, and the confirmation of additions related to unexplained investments under section 69A of the Act. The assessee argued that the reopening was unjustified and that the additions made were without proper basis. The Tribunal found merit in the assessee's request for a further opportunity to present his case and thus remanded the matter back to the AO.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 29545 (ITAT-AHMEDABAD)
• Duration Of Justice: 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 18-11-2024
• Assessment Year: 2012-2013
• Appeal Filed On: 11-03-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C. DHARANI NATH
• Assessee Lawyers: PARIN S. SHAH
• Keywords: Unexplained investment; Initiation of penalty proceedings
• Section: 148; 144; 271(1)(c); 69A

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदा बा द \u0012ा यपीठ SMC, अहमदा बा द । IN THE INCOME TAX APPELLATE TRIBUNAL “ SMC ” BENCH, AHMEDABAD ] BEFORE DR. BRR KUMAR, VICE PRESIDENT MS. SUCHITRA KAMBLE, JUDICIAL MEMBER आयकर अपील सं /ITA No.439/Ahd/2024 िनधा \u000fरण वष\u000f /Assessment Year : 2012-13 Pankajkumar N. Patel A-204, Green Leaves, Science City Road Sola, Ahmedabad – 380 060 (Gujarat) बनाम/ v/s. The ITO Ward-1 Ahmedabad – 384 265 \u0013थायी लेखा सं./PAN: ABZPP 0368 C (अपीलाथ\u0017/ Appellant) (\u0018\u0019 यथ\u0017/ Respondent) Assessee by : Shri Parin S. Shah, AR Revenue by : Shri C. Dharani Nath, Sr.DR सुनवाई की तारीख/Date of Hearing : 18/11/2024 घोषणा की तारीख /Date of Pronouncement: 22/11/2024 आदेश/O R D E R PER DR. BRR KUMAR, VICE PRESIDENT This is an appeal filed by the assessee against the order of the Ld.Commissioner of Income Tax (Appeals) [CITA] , National Faceless Appeal Centre, Delhi in proceeding u/s.250 of the Income Tax Act, 1961 vide order dated 11/01/2024 passed for the Assessment Year (AY) 2012-13. 2. The grounds of appeal taken by the assessee are as under:- 1. The order passed by lower authorities is bad in law and required to be quashed. ITA No. 439/Ahd/2024 Pankajkumar N. Patel vs. ITO Asst. Year : 2012-13 2 2 Ld. NFAC erred in law and on facts reopening in of assessment u/s 148 of the Act ignoring fact that there is no escapement of income and case has been reopened for making fishing and roving inquiries. 3 Ld. NFAC erred in law and on facts in confirming addition of unexplained investment of Rs.702667/- u/s69A of the Act. 4, Ld. NFAC erred in law and on facts in confirming addition of Rs. 1808774/- as unexplained investment u/s 69A ignoring fact that section does not have applicability. 5. Initiation of penalty proceedings 271(1)(c) of the Act. u/s 6. Charging of Interest u/s 234A,234B,234C are unjustified. 3. The brief facts of the case are that the assessee has filed his return of income for the year under consideration by declaring total income of Rs.2,46,200/-. The Assessing Officer (AO) passed an order u/s.147 r.w.s. 144 of the Income Tax Act, 1961 (“the Act”) ongoing to non-compliance of the notice issued to the assessee. The addition has been made on account of bank loan on proprietor’s capital account on an agricultural income. 4. We have heard both the parties and perused the material available on record. Before us, the Ld.Counsel for the assessee submitted that due confirmations could not be filed owing to reasons beyond assessee’s control and ill-health of family members of the assessee. The assessee pleaded that given an opportunity, due to compliance would be made before the AO, where the primary default has occurred. Thus, keeping in view, we hold that no prejudice is caused to the Revenue if an opportunity is given to the assessee to make his submissions before the AO. Hence, the matter is remanded to the AO to consider the submissions made by the assessee. ITA No. 439/Ahd/2024 Pankajkumar N. Patel vs. ITO Asst. Year : 2012-13 3 4. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Court on 22nd November, 2024 at Ahmedabad. Sd/- Sd/- (SUCHITRA KAMBLE) JUDICIALMEMBER ( DR. BRR KUMAR ) VICE PRESIDENT टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश की \u001fितिलिप अ ेिषत/Copy of the Order forwarded to : 1. अपीलाथ! / The Appellant 2. \u001f\"थ! / The Respondent. 3. संबंिधत आयकर आयु$ / Concerned CIT 4. आयकर आयु$ ) अपील ( / The CIT(A)-(NFAC), Delhi 5. िवभागीय \u001fितिनिध अिधकरण अपीलीय आयकर /DR,ITAT, Ahmedabad, 6. गाड\u000f फाईल / Guard file. आदेशानुसार/ BY ORDER, स\"ािपत \u001fित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad 1. Date of dictation pad attached with this file : 20.11.2024 2. Date on which the typed draft is placed before the Dictating Member. : 21.11.2024 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 22.11.24 7. Date on which the file goes to the Bench Clerk. : 22.11.24 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order : "