SHRI SHAILESH RAMESHCHANDRA MASHRU,AFRICA V. THE ITO INTL. TAXN. GANDHIDHAM, GANDHIDHAM

ITA 154/RJT/2024

AI Insights

The case involves Shailesh Rameshchandra Mashru, the appellant, contesting an order from the Income Tax Officer, International Taxation, Gandhidham, which assessed his income for the assessment year 2018-19. The primary contention was the addition of Rs. 79,75,202 as unexplained credits under section 69 of the Income Tax Act, 1961. The appellant argued that the Assessing Officer and the Dispute Resolution Panel erred in fact and law by not considering submitted documents and not providing a proper opportunity for a hearing, thus violating principles of natural justice. The Tribunal found that the case was not properly adjudicated and that the appellant was not given adequate opportunity to present his case, leading to the decision to remit the matter back to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 26383 (ITAT-RAJKOT)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIMANYU SINGH YADAV; LD.
• Assessee Lawyers: KAMAL BHAMBHANI; LD
• Keywords: Set aside; Opportunity of being heard; Unexplained cash credit; Principle of natural justice
• Section: 147; 69; 144C

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER AND SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER आयकरअपीलसं./ITA No. 154/RJT/2024 ( नधा\u000fरणवष\u000f / Assessment Year: (2018-19) (Hybrid Hearing) Shailesh Rameshchandra MAshru Villa Huguette Lot IIU86 Cite, Planton, Antananarivo Madagascar Africa – 999999 Vs. Income Tax Officer, International Taxation, Sector 8, Gandhidham – 370203 \u0013थायीलेखासं./जीआइआरसं./PAN/GIR No.: CPAPM0079L (Appellant) (Respondent) Appellant by : Shri Kamal Bhambhani, Ld. AR Respondent by : Shri Abhimanyu Singh Yadav, Ld. Sr. DR Date of Hearing : 09/01/2025 Date of Pronouncement : 04/04/2025 आदेश / O R D E R PER DINESH MOHAN SINHA, JM: Captioned appeal filed by the assessee is directed against the order passed by the National Faceless Appeal Centre [(in short “NFAC/Ld. CIT(A)”] vide order dated 29.12.2023, which in turn assessment order passed by Assessment Unit, Income Tax Department / Assessing Officer under section 147 r.w.s. 144C(13) of the Income Tax Act, 1961 (in short “the Act”), vide order dated 18.01.2024. 2. Grounds of appeal raised by the assessee are as follows: 1) Ld. AO and Hon’ble Dispute Resolution Penal have errede on facts by stating that assessee has not submitted the complete documents without appreciating the Page | 2 Shailash Rameshchandra Mashru v. ITO ITA No. 154 /Rjt/2024 (AY 2018-19) fact that the appellant had submitted his passport on 26.12.2023 in resolution to proving his status as NRI. 2) Ld. AO has grievously erred on facts as in law by not providing proper opportunity of being heard by stating in the remand report that due to paucity of time no notice is issued to the assessee for cross verification/questioning which is involution of principles of natural justice. 3)Ld. AO and Hon’ble Dispute Resolution Penal have grievously erred on facts as also in law in appreciating the fact that the renewed time deposits were out of maturity proceeds of fixed deposits booked in earlier period and which could not be taxed in the AY under consideration. The order of the Ld. AO is baseless and totally unwarranted under the circumstances and facts of the appellant’s case and deserves to be quashed and therefore may kindly be quashed. 3. Brief facts of the case that the Assessing officer issued the assessment order dated 18.01.2024 u/s. 147 r.w.s. 144C of the I. T. Act, 1961 by making an addition of Rs. 79,75202/- on account of unexplained credits u/s. 69 of the Act, total income assessed at Rs. 80,30,400/-. 4. That the assessee filed an appeal against the impugned order dated 18.01.2024 of the Ld. AO (Int. Taxation). 5. During the course of hearing, the Ld. AR of the assessee submitted that the assessee do have an interest income. The Ld. AO (Int. taxation) did not consider the evidence filed during the course of assessment proceedings. The Ld. AR of the assessee prayed an opportunity to be given to the assessee to explain the case before the Ld. AO (int. taxation). 6. On the other hand, the Ld. Sr. DR has relied upon the order of the Ld. AO (Int. taxation) and not objected to the prayer of the Ld. AR. 7. We have heard both the parties and perused the documents available on record. We note that four notices have been issued by the Ld. AO (Int. taxation), but there was no compliance to the notice . The ex-parte order of Page | 3 Shailash Rameshchandra Mashru v. ITO ITA No. 154 /Rjt/2024 (AY 2018-19) Ld. AO (Int. taxation) is silent on service of the notice upon the assessee. The fact that the majority of the time deposits were auto redeemed in the subsequent month and the same has been further invested in new time deposits. Therefore, the additional investment in new time deposits was very merge. The Ld. AO not considered cogent evidences available on record such as copy of the bank statements for FY 2016-17 & 2017-18 and statement containing details of maturity proceeds of old time deposits invested in new time deposits during the FY 2017-18 submitted during the assessment proceedings. We note that the case was not properly adjudicated by the Authority. However, we are of the view that an opportunity should be given to the assessee to present his case before the Ld. AO(int. taxation). We set aside the order of Ld. AO(Int. taxation) and remit the matter back to the file of Ld. AO(Int. taxation) for fresh adjudication on merit after giving due opportunity to the assessee of being heard. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 04 -04-2025. Sd/- Sd/- (A. L. SAINI) (DINESH MOHAN SINHA) ACCOUNTANT MEMBER JUDICIAL MEMBER Rajkot (True Copy) \u001bदनांक/ Date:04 /04/2025 Copy of the Order forwarded to 1. The Assessee 2. The Respondent 3. The CIT(A) 4. Pr. CIT 5. DR/AR, ITAT, Rajkot 6. Guard File By Order Assistant Registrar/Sr. PS/PS ITAT, Rajkot "