PRABHATBHAI KHODABHAI DESAI,AHMEDABAD V. THE ITO, WARD-7(2)(1) EARLIER WARD-7(1)(4), AHMEDABAD

ITA 384/AHD/2025

AI Insights

This case involves an appeal by Prabhatbhai Khodabhai Desai against the order of the Commissioner of Income Tax (Appeals), which confirmed additions to the assessee's income based on Form 26AS and an arbitrary addition estimated at 0.01% of total securities transactions. The Tribunal noted the assessee's failure to comply with multiple notices and opportunities provided by the CIT(A) and the Assessing Officer. In the interest of justice, the Tribunal decided to set aside the CIT(A)'s order and remand the case back to the Assessing Officer for a fresh assessment, allowing the assessee another opportunity to present the necessary documents and explanations.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 771854 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2016-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJENKUMAR M VASAVDA
• Assessee Lawyers: MANISH SHAH
• Keywords: Set aside; FORM 26AS

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER ITA No.384/Ahd/2025 (Assessment Year: 2016-17) Prabhatbhai Khodabhai Desai, A/101, Royal Orchid, Near Prahlad Nagar Garden, Satellite, Ahmedabad-380015. [PAN :ACBPD3340 F] Vs. Income Tax Officer, Ward-7(2)(1), (Earlier ITO Ward-7(1)(4)) Ahmedabad. (Appellant) .. (Respondent) Appellant by : Shri Manish Shah, AR Respondent by: Shri Rajenkumar M Vasavda, Sr. DR Date of Hearing 14.08.2025 Date of Pronouncement 25.08.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- Delay Condoned This appeal is filed by the Assessee against the appellate order dated 16.01.2023 passed by the Commissioner of Income Tax (Appeals) Mumbai/National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2016-17. 2. The assessee has raised the following grounds of appeals: (1) The learned CIT(A) has erred in confirming the addition of Rs.13,00,000/- based solely on Form 26AS, without considering the exempt nature of gratuity and leave encashment. Printed from counselvise.com ITA No. 384/Ahd/2025 Prabhatbhai K Desai Vs. ITO Asst. Year : 2016-17 - 2– (2) The learned CIT(A) has erred in confirming the arbitrary addition of Rs.10,84,160/- estimated at 0.01% of total securities transactions, without any substantive verification or inquiry. 3. On going through the record, we find that the notices u/s.250 were issued on 28.01.2020, 29.12.2020, 29.03.2022, 25.10.2022 & 02.11.2022, requesting the assessee to submit certain details/clarification/ explanation to substantiate its claims. Despite several opportunities and notices issued by the Ld.CIT(A), the assessee failed to furnish the requisite submissions/documents. Accordingly, the Ld. CIT(A) confirmed the action of the Assessing Officer by dismissing the appeal of the assessee. We also find that the assessee failed to comply even before the Assessing Officer. The Ld. Counsel for the assessee prayed that, given an opportunity, due compliances will be made and all the details/clarification/explanation would be provided to the revenue authorities. Hence, in the interest of justice, we set aside the order of the Ld.CIT(A) and restore the matter back to the Assessing Officer for conducting assessment de-novo. The assessee shall submit all the relevant bank statement/submission/document before the Assessing Officer and comply with the notices issued by the revenue authorities without seeking any unnecessary adjournments. 4. In the result, the appeal of the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 25.08.2025. Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 25.08.2025 MV Printed from counselvise.com ITA No. 384/Ahd/2025 Prabhatbhai K Desai Vs. ITO Asst. Year : 2016-17 - 3– आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "