TRUPTI ASHISHKUMAR DESAI,VAPI V. ITO, WARD-7, VAPI

ITA 507/SRT/2024

AI Insights

This case involves an appeal by Trupti Ashishkumar Desai against the order of the Commissioner of Income Tax (Appeals), which confirmed an addition of Rs. 7,00,130 under Section 69 of the Income Tax Act, 1961, for unexplained investment. The Assessing Officer had initially made this addition under Sections 144 and 147 of the Act, and the CIT(A) upheld this decision in ex parte proceedings. The assessee argued that the CIT(A) had not provided a fair opportunity to present her case, particularly noting the limited number of notices received, some during the COVID period. The Tribunal, considering the principles of natural justice and the assessee's commitment to comply more vigilantly in the future, decided to restore the matter to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 33921 (ITAT-SURAT)
• Duration Of Justice: 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Next Hearing Date: 01-10-2024
• Assessment Year: 2011-2012
• Appeal Filed On: 01-05-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained investment; Reopening of assessment; Principle of natural justice
• Section: 144; 250; 271(1)(c); 69A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH (SMC), SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER ITA No. 507/Srt/2024 (Assessment Year 2011-12) (Hybrid hearing) Trupti Ashishkumar Desai, 205, B-2, Rajmoti Complex, Charwada Road, Pardi, Valsad, Vapi-396195 (Gujarat) PAN No. ABQPD 3802 N Vs. I.T.O., Ward-7, Vapi. Appellant/ Assessee Respondent/ Revenue Assessee represented by Shri Parin Shah, C.A. Department represented by Shri Mukesh Jain, Sr.DR Appeal instituted on 01/05/2024 Date of hearing 01/10/2024 Date of pronouncement 01/10/2024 Order under Section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee is directed against the order of the learned Commissioner of Income Tax (Appeals), Addl/JCIT (A)-5, Mumbai [in short, the ld. CIT(A)] dated 06/03/2024 for the Assessment Year (AY) 2011-12. The assessee has raised following grounds of appeal: “1. The order passed by lower authorities is bad in law and required to be quashed. 2. Ld. JCIT(A) erred in law and on facts in confirming addition of Rs. 7,00,130/- u/s 69 of the Act. 3. Ld. JCIT(A) erred in law and on facts in reopening of assessment without observing any escapement on part of appellant. 4. Initiation of penalty u/s 271(1)(c) is unjustified. 5. Charging of interest u/s 234A, 234B, 234C and unjustified.” 2. Rival submission of both the parties have been heard and record perused. The learned Authorised Representative (ld. AR) of the assessee submits that the ld. CIT(A) passed the ex parte without giving fair and reasonable opportunity to the ITA No. 507/Srt/2024 Trupti Ashishkumar Desai Vs ITO 2 assessee. The ld. CIT(A) confirmed the finding of Assessing Officer by taking view that several opportunities were given to the assessee and that the assessee is not complied various notices issued under Section 250 of the Income Tax Act, 1961 (in short, the Act). The ld. AR of the assessee submits that as per para- 4.1 of ld CIT(A). the assessee was issued one notice in 2019 and two notice in Covid period and only last notice was issued in 2024. The ld AR of the assessee submits that the assessee missed his opportunity in making compliance to such notice. The Assessing Officer has passed assessment order under Section 144 r.w.s 147 of the Act, therefore, the matter may be restored back to the file of Assessing Officer to decide it afresh on merit after giving opportunity to the assessee. The ld. AR of the assessee submits that he undertakes on behalf of assessee to be more vigilant in future in complying the notices issued by the lower authorities. The assessee has a good case on merit and is likely to succeed if one more opportunity is allowed to the assessee to contest the case on merit. On merit, the ld AR of the assessee submits that the deposits/ credit in the bank was from explained sources, which was credited on account of term deposits. 3. On the other hand, the learned Senior Departmental Representative (ld. Sr. DR) for the revenue submits that the assessee was given ample opportunity by the lower authorities, it is the assessee who has not availed such opportunity, therefore, even on merit, the assessee is not eligible for any relief. 4. I have considered the submissions of both the parties and perused material available on record. I find that the Assessing Officer made addition on account of unexplained investment under Section 69A of Rs. 7,00,130/- on account of term deposits. The Assessing Officer passed the assessment order under section ITA No. 507/Srt/2024 Trupti Ashishkumar Desai Vs ITO 3 144 as well as 147 of the Act. The action of Assessing Officer was upheld by the ld. CIT(A) in ex parte proceedings. Now before me the ld AR for the assessee undertook to be more vigilant in attending the hearing and in making timely compliance. On considering the facts and circumstances of the case, I am of the view that the substantial right of assessee is involved in the present appeal, therefore, keeping in view the principle of natural justice, the assessee is giving one more opportunity to explain the case on merit, therefore, the matter is restored back to the file of Assessing Officer for deciding the issue afresh. Needless to direct that before passing the order, the Assessing Officer shall grant opportunity of hearing to the assessee. The assessee is also directed to be more vigilant in future and not to cause further delay and seek adjournment without any valid reason and to furnish all the details and his submissions and evidences on various grounds of appeal raised by it, as soon as possible, if so desired without any further delay. In the result, the grounds of appeal raised by the assessee are allowed for statistical purposes. 5. In the result, this appeal of assessee is allowed for statistical purposes only. Order announced in open court on 01st October, 2024. Sd/- (PAWAN SINGH) JUDICIAL MEMBER Surat, Dated: 01/10/2024 *Ranjan ITA No. 507/Srt/2024 Trupti Ashishkumar Desai Vs ITO 4 Copy to: 1. Assessee 2. Revenue 3. CIT 4. DR 5. Guard File By order Sr. Private Secretary, ITAT, Surat "