SANJAYBHAI SHANTILAL SHAH,AHMEDABAD V. THE ITO, WARD-5(3)(1), AHMEDABAD

ITA 284/AHD/2025

AI Insights

This case involves an appeal by Sanjaybhai Shantilal Shah against the order of the Commissioner of Income Tax (Appeals) / National Faceless Appeal Centre, Delhi, which confirmed the order of the Assessing Officer. The primary contention was the addition of Rs. 40,00,000 to the assessee's income under section 69 of the Income Tax Act, 1961, which was alleged to be unexplained investment. The assessee argued that the addition was unjust as he had provided all necessary documents and that the interest earned from the investments was below the taxable limit. The tribunal also addressed procedural issues regarding the dismissal of the appeal on grounds of limitation without proper manual communication of hearing notices, which was against the principles of natural justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708534 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2019-2020
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B.P MAKWANA
• Assessee Lawyers: JAMIN SHAH
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice
• Section: 147; 148; 69; 234B

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.284/Ahd/2025 (Assessment Year: 2019-20) Sanjaybhai Shantilal Shah, B-305, Shivalaya-3, 100 ft Road, Near Hetvi Tower, Satellite Ahmedabad-380015. [PAN :BOPPS6924 F] Vs. Income Tax Officer, Ward-5(3)(1), Ahmedabad. (Appellant) .. (Respondent) Appellant by : Shri Jamin Shah, AR Respondent by: Shri B.P Makwana, Sr. DR Date of Hearing 17.07.2025 Date of Pronouncement 18.07.2025 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 21.08.2024 passed by the Commissioner of Income Tax (Appeals) /National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2019-20. 2. The assessee has raised the following grounds of appeals: 01. That the Ld. CIT(A) has erred both in law and on facts while confirming the order of the AD without giving proper opportunity of being heard and as such the appeal dismissed on grounds of limitation and hence it will require to be set-aside ITA No. 284/Ahd/2025 Sanjaybhai S Shah Vs. ITO Asst. Year : 2019-20 - 2– 02. That the appellant is not a techno savvy and hence the appellant has specifically denied for communication of notices on E-mail however without issue of manual communication for hearing notice the appeal dismissed on the ground of limitation is against the provision off natural justice and as such the order passed by NFAC dated 21-08-20024 require to be set aside 03. That the notice issued u/s 148 of the Income Tax Act, by the assessing officer ward 50(7), Ahmedabad is against the provision of law and therefore the whole proceedings are bad in law and require to be quashed 04. That the reasons recorded u/s 147 of the IT. Act, 1961 are vague and therefore the proceedings initiated are bad in law and require to be set aside. 05. That the assessee has furnished all the documents before the assessing officer, however without appreciating the facts and documents the order passed is against the provision of law and therefore the addition made u/s 69 of the Income Tax Act 1961 for Rs. 40,00,000/-requires to be deleted 06. That the appellant has not committed default as defined u/s 115BBE of the IT. Act. 1961, however the assessing officer has applied section 115BBE for taxing at hire rate of Tax is not valid in law and it require to be deleted. 07. The assessee has not made any default of Sec. 210 nor made any default in payment of advance tax and therefore unwanted interest charged u/s.234A 234B and 234C requires to be deleted. 3. The addition of Rs. 40,00,000/- has been made in the hands of the assessee owing to the investments made in the following companies. i. Tata Capital Finance Services Limited. ii. Mahindra & Mahindra Financial Services Limited. iii. India Bulls Commercial Credit Limited. iv. LNT Finance Limited. ITA No. 284/Ahd/2025 Sanjaybhai S Shah Vs. ITO Asst. Year : 2019-20 - 3– 4. The assessee submitted that he has taken loan of Rs.40,00,000/- from ECL Finance Limited, invested in the following companies bonds and interest earned thereon. The relevant extract is reproduced as under: ITA No. 284/Ahd/2025 Sanjaybhai S Shah Vs. ITO Asst. Year : 2019-20 - 4– ITA No. 284/Ahd/2025 Sanjaybhai S Shah Vs. ITO Asst. Year : 2019-20 - 5– ITA No. 284/Ahd/2025 Sanjaybhai S Shah Vs. ITO Asst. Year : 2019-20 - 6– 5. Since the sources of the investments have been furnished and the interest earned is less than the taxable limit, we hold that no addition is warranted. ITA No. 284/Ahd/2025 Sanjaybhai S Shah Vs. ITO Asst. Year : 2019-20 - 7– 6. In the result, the appeal of the assessee is allowed. The order is pronounced in the open Court on 18.07.2025 Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 18.07.2025 MV 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 "