RAPID PROCESSORS PRIVATE LIMITED,AHMEDABAD V. THE INCOME TAX OFFICER, WARD-3(1)(2) (OLD WARD- 3(1)(3)), AHMEDABAD

ITA 1490/AHD/2024

AI Insights

The case involves cross-appeals by the Revenue and the Assessee against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for the Assessment Year 2017-18. The Revenue challenged the deletion of an addition of Rs.2,05,04,000 treated as unexplained money under Section 69A of the Income Tax Act, 1961, while the Assessee contested the confirmation of an addition of Rs.30,00,000 under the same section. A significant issue arose regarding the jurisdiction due to the use of different PANs in the assessment and the appeal, leading to the setting aside of the CIT(A)'s order and restoration of the matter to the JAO for a comprehensive re-examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 39137 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAVAN LIBASIYA
• Assessee Lawyers: MAHESH CHHAJED
• Keywords: Set aside
• Section: 143(2); 69A

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद \u0011ायपीठ “बी“,अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD \u0014ी टी.आर. से\u0018\u0019ल क ुमार, \u0011ाियक सद\u001b एवं \u0014ी मकरंद वसंत महादेवकर, लेखा सद\u001b क े सम!। ] ] BEFORE SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER & SHRI MAKARAND V. MAHADEOKAR, ACCOUNTANT MEMBER 1. आयकर अपील सं /ITA No.1483/Ahd/2024 – Asst.Year 2017-18 2. आयकर अपील सं /ITA No.1490/Ahd/2024 – Asst.Year 2017-18 1. Income Tax Officer Ward-3(1)(2) Ahmedabad-380 015 (Old) ITO, Wd-3(1)(3), Ahmedabad 2. Rapid Processors Private Limited C/o. M.S. Chhajed & Co. CA, “Kamal Shanti” Nr. Sardar Patel Statue Ahmedabad – 380 014 बनाम/ v/s. 1. Rapid Processors Private Limited C/o. M.S. Chhajed & Co. CA, “Kamal Shanti” Nr. Sardar Patel Statue Ahmedabad – 380 014 2. Income Tax Officer Ward-3(1)(2) Ahmedabad-380 015 (Old) ITO, Wd-3(1)(3), Ahmedabad \u000eथायी लेखा सं./PAN: AACCR 7250 E (अपीलाथ$/ Appellants) (%& यथ$/ Respondents) Assessee by : Shri Mahesh Chhajed, AR Revenue by : Shri Kavan Libasiya, Sr.DR सुनवाई की तारीख/Date of Hearing : 18/02/2025 घोषणा की तारीख /Date of Pronouncement: 19/02/2025 आदेश/O R D E R PER MAKARAND V. MAHADEOKAR, AM: These cross-appeals filed by the Revenue and the Assessee are directed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “CIT(A)”], ITA No.1483/Ahd/2024 (By Revenue) & ITA No.1490/Ahd/2024 (By Assessee ) Asst. Year : 2017-18 2 dated 20.06.2024, for the Assessment Year (AY) 2017-18. The Revenue has challenged the deletion of an addition of Rs.2,05,04,000/- made under Section 69A of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), whereas the assessee has filed a cross appeal against the confirmation of an addition of Rs.30,00,000/- made by the Assessing Officer (hereinafter referred to as “AO”) under Section 69A of the Act. 2. Following are the grounds of appeal(s) before us: In Revenue’s appeal - ITA No.1483/Ahd/2024 - (a) The Ld.CIT(A) has erred in law and on facts in deleting the addition on account of credit transaction reflected in bank account amounting to Rs.2,05,04,000/- treating as unexplained money u/s 69A of the Act ? (b) The appellant craves leave to add, alter and /or to amend all or any the ground before the final hearing of the appeal. In Assessee’s appeal - ITA No. 1490/Ahd/2024 1. The order passed by the Ld. CIT (A) is against law, equity and justice. 2. The CIT (A) has erred in law and on facts in considering the validity of assessment order passed by Ld. AO without issuing notice u/s 143(2) of the Act. 3. The CIT (A) has erred in law and in considering the facts of invoking section 115BBE of the Act when transactions occurred prior to insertion of provision on statute. 4. The CIT (A) has erred in law and on facts in upholding the validity of order passed by Ld. AO without having jurisdiction and contrary to instruction of CBDT. ITA No.1483/Ahd/2024 (By Revenue) & ITA No.1490/Ahd/2024 (By Assessee ) Asst. Year : 2017-18 3 5. The CIT (A) has erred in law and on facts in upholding addition made by the Ld. A.O. u/s 69A of the Act of Rs.30,00,000/-. 6. The appellant Craves liberty to add, amends, alter or modify all or any grounds of appeal before final appeal. 3. During the course of hearing, it was observed that the AO passed the assessment order under PAN AADCR8817L, while the CIT(A) adjudicated the appeal under a different PAN AACCR7250E. Furthermore, the assessee filed Form 35 for the appeal before the CIT(A) under PAN AACCR7250E, which was not the PAN under which the assessment order was framed. This discrepancy raises a jurisdictional issue regarding the maintainability of the appeal before the CIT(A). 4. The Departmental Representative (DR) agreed that the order passed by CIT(A) has certain jurisdictional issues. It was further pointed out that the assessee was aware of the fact that it holds two PANs, as it is evident from the reply received from the bank in response to notice issued under Section 133(6) of the Act. The bank provided the KYC details and copy of resolution, copy of PAN card (AADCR8817L) and copy of PAN cards of both the directors. The Authorized Representative (AR) of the assessee has admitted to assessee holding two PANs, which is a serious violation under the Act. 5. As per Section 139A(7) of the Act, a person is prohibited from having more than one PAN, and any violation attracts penalties under Section 272B of the Act, which prescribes a fine of Rs.10,000/-. The existence of multiple PANs raises concerns regarding potential tax evasion, misrepresentation of financial transactions, and improper filing of tax returns. Further it is noted ITA No.1483/Ahd/2024 (By Revenue) & ITA No.1490/Ahd/2024 (By Assessee ) Asst. Year : 2017-18 4 that the assessee has admitted to holding two PANs, this matter requires verification of all related transactions. The AO did not have the opportunity to examine this aspect during the assessment proceedings being ex-parte order on account of non-cooperation by the assessee. Given this situation, it is imperative for the AO to take a consolidated view by verifying the banking transactions linked to both PANs and examining all bank accounts of the assessee to form a proper opinion. 5.1. Given that the assessment order was passed under PAN AADCR8817L, but the appeal was adjudicated under PAN AACCR7250E, the CIT(A) lacked jurisdiction to entertain the appeal. The order passed by the CIT(A) is, therefore, rendered invalid and is liable to be set aside. 5.2. In light of the above, the matter is restored to the file of the JAO for a fresh examination of all banking transactions under both PANs and to determine the implications of the assessee holding multiple PANs. The JAO shall verify all bank accounts linked to both PANs and ensure that a consolidated assessment is carried out in accordance with law. 5.3. The merits of the case are not being considered at this stage, as the jurisdictional issue itself warrants restoration to the JAO. The JAO shall grant the assessee a proper opportunity to present its case and provide necessary explanations. 5.4. In view of the above, the order of the CIT(A) is set aside, and the matter is restored to the JAO for fresh adjudication. ITA No.1483/Ahd/2024 (By Revenue) & ITA No.1490/Ahd/2024 (By Assessee ) Asst. Year : 2017-18 5 6. In the result, the appeal of the Revenue and the appeal of the assessee both are allowed for statistical purposes. Order pronounced in the Open Court on 19th February, 2025 at Ahmedabad. Sd/- Sd/- (T.R. SENTHIL KUMAR) JUDICIAL MEMBER (MAKARAND V. MAHADEOKAR) ACCOUNTANT MEMBER अहमदाबाद/Ahmedabad, िदनांक/Dated 19/02/2025 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश की #ितिलिप अ$ेिषत/Copy of the Order forwarded to : 1. अपीलाथ% / The Appellant 2. #&थ% / The Respondent. 3. संबंिधत आयकर आयु( / Concerned CIT 4. आयकर आयु( ) अपील ( / The CIT(A)-(NFAC), Delhi 5. िवभागीय #ितिनिध , अिधकरण अपीलीय आयकर , राजोकट/DR,ITAT, Ahmedabad, 6. गाड- फाईल / Guard file. आदेशानुसार/ BY ORDER, स&ािपत #ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad 1. Date of dictation (word processed by Hon’ble AM in his laptop) : 18.2.2025 2. Date on which the typed draft is placed before the Dictating Member. : 18.2.2025 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. : 19.2.25 7. Date on which the file goes to the Bench Clerk. : 10.2.25 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 : "