RAJENDRA NAROTTAMDAS SHETH,SURAT V. IDCIT CENTRAL CIRCLE-2(1)(1), SURAT

ITA 84/SRT/2025

AI Insights

The case involves Rajendra Narottamdas Sheth, the appellant, contesting the order of the CIT(A) which confirmed the actions of the Assessing Officer regarding the reopening of assessment under section 147 and the addition of Rs.5,60,00,000 as unexplained investment under section 68 of the Income Tax Act. The appellant argued that the CIT(A) had erred in law and fact by confirming the jurisdictional assumption and the additions made. The Tribunal noted procedural lapses by the CIT(A), including the failure to provide a fair hearing and the issuance of notices to an incorrect email address, which led to the setting aside of the CIT(A)'s order and a remand for fresh consideration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 396772 (ITAT-SURAT)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MUKESH JAIN
• Assessee Lawyers: P. M. JAGASHETH
• Keywords: Set aside; Unexplained investment; Principle of natural justice
• Section: 147; 148; 68

Judgement Text

" आयकर अपीलीय अिधकरण,सूरत Ɋायपीठ, सूरत । IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT [conducted through Hybrid mode] ŵी संजय गगŊ, Ɋाियक सद˟ एवं ŵी िबजयानȽा Ůुसेथ, लेखा सद˟ क े समƗ। ] ] Before Shri Sanjay Garg, Judicial Member And Shri Bijayananda Pruseth, Accountant Member आयकर अपील सं /ITA No.84/SRT/2025 िनधाŊरण वषŊ /Assessment Year : 2012-13 Rajendra Narottamdas Sheth A-202, Parshwa Darshan Co- op. Housing Society Opp.Navyug College Surat – 395 009 बनाम/ v/s. Deputy Commissioner of Income Tax Central Circle-2(1)(1) Surat – 395 001 ̾थायी लेखा सं./PAN: AFXPS 2264 Q (अपीलाथŎ/ Appellant) (Ů̝ यथŎ/ Respondent) Assessee by : Shri P.M. Jagasheth, CA Revenue by : Shri Mukesh Jain, CIT(DR) सुनवाई की तारीख/Date of Hearing : 30/04/2025 घोषणा की तारीख /Date of Pronouncement: 27/05/2025 आदेश/O R D E R Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’] dated 07/05/2024 for the Assessment Year (AY) 2012-13. 2. The assessee has raised the following grounds of appeal: 1. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has erred in confirming the ITA No.84/SRT/2025 Rajendra narottamdas Sheth vs. DCIT Asst. Year : 2012-13 2 action of the Assessing Officer in reopening the assessment u/s 147 of the Act and notice u/s. 148 of the Act was issued. 2. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has erred in confirming the action of learned Dy. CIT has in assuming jurisdiction at the last moment and the order passed by him is without jurisdiction and bad in law. 3. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in making addition of Rs.5,60,00,000/- on account of unexplained investment u/s 68 of the Act. 4. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has not offered adequate opportunities to hear, hence, the case may please be set aside and restored back to the CIT(A) or AO for sake of the interest of natural justice. 5. It is therefore prayed that the above addition may please be deleted as learned members of the tribunal may deem it proper. 6. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of the hearing of the appeal. 3. At the outset, the Ld.Counsel for the assessee has invited our attention to the impugned order and submitted that the Ld.CIT(A) has passed an ex-parte order of the assessee. The Ld.Counsel has submitted that, in fact, the assessee did not receive any email regarding the date of hearing from the Ld.CIT(A). That, the Ld.CIT(A) had sent the notice of hearing on some wrong email-id. He has further demonstrated that even the impugned order of the Ld.CIT(A) is a non-speaking order. The Ld.CIT(A) has not discussed any facts or issues involved in this case and has not given any findings on merits. The action of the Ld.CIT(A) for dismissing the appeal of the assessee without discussion on merits is against the statutory provisions. Sub-section (6) of section 250 of the Income Tax Act, 1961 contemplates that the ld.CIT(A) would states the points in dispute and thereafter assign reasons in support of ITA No.84/SRT/2025 Rajendra narottamdas Sheth vs. DCIT Asst. Year : 2012-13 3 conclusions. This exercise of power at the end of the Ld.CIT(A) is not in coherence with the mandate of section 250(6) of the Act. 4. In view of the above observations, in our view, the interests of justice will be well served, if the assessee is given an opportunity to present his case before the Ld.CIT(A). The impugned order of the Ld.CIT(A) is accordingly set aside and the matter is restored to the file of Ld.CIT(A) with a direction to decide the same afresh. The assessee will furnish his correct email-id as well as postal address to the Ld.CIT(A) within 30 days on receipt of this order. The Ld.CIT(A) will issue notices, both in electronic mode as well as in physical mode, to the assessee. On failure of the assessee in furnishing the correct email-id and postal address to the Ld.CIT(A), the CIT(A) will be at liberty to decide the appeal of the assessee ex-parte of the assessee, but on merits. 5. With the above observations, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the Open Court on 27/05/2025. Sd/- Sd/- (Bijayananda Pruseth) Accountant Member ( Sanjay Garg ) Judicial Member अहमदाबाद/Ahmedabad, िदनांक/Dated 27/05/2025 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS ITA No.84/SRT/2025 Rajendra narottamdas Sheth vs. DCIT Asst. Year : 2012-13 4 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)- (NFAC), Delhi 5. िवभागीय Ůितिनिध , अिधकरण अपीलीय आयकर , सूरत /AR,ITAT, Surat/Ahmedabad. 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, सȑािपत Ůित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT,Surat/Ahmedabad "