SHWETA PARESHKUMAR JAIN,SURAT V. ITO, WARD 2(3)(4), SURAT

ITA 275/SRT/2025

AI Insights

This case involves an appeal by Shweta Pareshkumar Jain against the order of the Commissioner of Income Tax (Appeals), which confirmed an addition of Rs.6,18,319/- to her income for unexplained purchases of shares, despite the deletion of other additions related to unexplained income from share sales and bank credits. The original assessment was reopened due to non-filing of income tax returns for the Assessment Year 2011-12, following which unexplained income and bank credits were added to her income. The CIT(A) deleted some additions but upheld the addition related to the purchase of Larsen and Toubro shares. The Tribunal found that the CIT(A) had not issued a show-cause notice before confirming this addition and thus remanded the issue back for a proper hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708153 (ITAT-SURAT)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2011-2012
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY UKE
• Assessee Lawyers: MEHUL SHAH
• Keywords: Set aside; Unexplained cash credit

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT [conducted through Hybrid mode] ] ] BEFORE SHRI T.R.SENTHIL KUMAR JUDICIAL MEMBER AND SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER ITA No.275/SRT/2025 Assessment Year : 2011-12 Shweta Pareshkumar Jain C-904 Jolly Residency Nayapura Karva Road Vesu, Surat – 395 007 v/s. The Income Tax Officer Ward-2(3)(4) Surat – 395 001 PAN: ASKPP 6811 E (Appellant) (Respondent) Assessee by : Shri Mehul Shah, CA Revenue by : Shri Ajay Uke, Sr.DR Date of Hearing : 03/07/2025 Date of Pronouncement: 16/07/2025 O R D E R PER T.R.SENTHIL KUMAR JUDICIAL MEMBER: This appeal is filed by the assessee as against the ex-parte appellate order dated 31/01/2025 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “CIT(A)”] arising out of the re-assessment order passed u/s.147 r.w.s.144 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) relating to the Assessment Year (AY) 2011- 12. 2. The brief facts of the case are that the assessee is an individual has not filed the return of income relating to the AY 2011-12. The assessee had carried out transactions in Bombay Stock Exchange to ITA No.275/SRT/2025 Shweta Pareshkumar Jain vs. ITO Asst. Year : 2011-12 2 the tune of Rs.2,34,273/-. Therefore, the assessment was reopened by issuing a notice u/s.148 on 29/03/2018. However, the assessee has not participated in the hearing which has resulted in making an addition of Rs.5,95,387/- being unexplained income of sale of shares and Rs.18,72,477/- being unexplained credits in his bank accounts of HDFC Bank and State Bank of India and demanded tax thereon. 3. Against the ex-parte re-assessment order, the assessee filed appeal before the Ld.CIT(A) and filed additional documents relating to sale of shares and bank transactions. Ld.CIT(A) called for a Remand Report from the AO and deleted the additions on account of sale of shares. However, the CIT(A) held that the purchase of Larsen and Toubro shares for Rs.6,18,319/- was not properly explained by the assessee, therefore confirmed the addition. 4. Against the order of ld.CIT(A), assessee is in appeal before us raising following Grounds of Appeal: “1. On the facts and in circumstances of the case as well as law on the subject, the learned CIT(A) has erred in making an enhanced addition of Rs. 6,18,319/- after deleting the total original addition of Rs. 24,67,864/- (Rs. 5,95 387/- on account of sale of shares u/s 68 (+) Rs. 18,72,477 on account of unexplained credits in the bank accounts u/s 68] without issuing any show-cause notice u/s. 251(2). 2. Even otherwise, the learned CIT(A) has erred in making addition of Rs. 6,18,319/- on account of unexplained purchases. 3. It is therefore prayed that the enhancement made by the learned CIT(A) may kindly be deleted. 4. The appellant craves leave to add or alter or delete any of the ground or grounds of appeal at the time of the hearing before Your Honour.” ITA No.275/SRT/2025 Shweta Pareshkumar Jain vs. ITO Asst. Year : 2011-12 3 5. The Ld.Counsel for the assessee submitted that the Ld.CIT(A) without issuing a show-cause notice, confirmed the addition of Rs.6,18,319/- being the purchase value of the shares, whereas the assessee has produced copy of the broker statement, therefore requested to set aside the matter back to the file of Ld.CIT(A) to decide the case by giving regular opportunity of hearing to the assessee. 6. The Ld.Sr.DR appearing for the Revenue has no serious objection in setting aside the matter back to the file of Ld.CIT(A) to decide the same on merits. 7. We have heard both the parties and perused the material available on record. Looking to the facts and circumstances of the case and in the interests of justice, the impugned order of the Ld.CIT(A) is hereby set aside with a limited purpose for deciding the issue relating to addition of Rs.6,18,319/- made on account of unexplained purchases, by giving proper opportunity of hearing to the assessee. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 16/07/2025. Sd/- Sd/- (BIJAYANANDA PRUSETH) ACCOUNTANT MEMBER ( T.R.SENTHIL KUMAR ) JUDICIAL MEMBER Dated 16/07/2025 T.C. NAIR, Sr. PS ITA No.275/SRT/2025 Shweta Pareshkumar Jain vs. ITO Asst. Year : 2011-12 4 Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. The Concerned CIT 4. The CIT(A)-(NFAC), Delhi 5. The /AR,ITAT, Surat/Ahmedabad. 6. Guard file. BY ORDER, //True Copy// (Asstt. Registrar) ITAT,Surat/Ahmedabad 1. Date of dictation (dictation pad is attached with the file)) : 10.7.2025 2. Date on which the typed draft is placed before the Dictating Member. : 10.7.2025 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. : 16.7.2025 7. Date on which the file goes to the Bench Clerk. : 16/7.2025 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 : "