VINOD VALLABHABHAI SANGHANI,JAMNAGAR V. INCOME TAX OFFICER, WARD-3(5) JAMNAGR, JAMNAGAR

ITA 257/RJT/2025

AI Insights

The case involves four appeals filed by the assessee, Vinod Vallabhbhai Sanghani, against the orders of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for the Assessment Year 2011-12. The appeals pertain to unexplained additions in quantum assessment and penalties under various sections of the Income Tax Act, 1961. The assessee initially sought to avail the VSVS-2020 Scheme, leading to the dismissal of the quantum appeal by the CIT(A). Due to financial difficulties, the assessee could not comply with the scheme, prompting a request to contest the appeal on merits and submit additional evidence. The Tribunal decided to remit the quantum proceedings and penalties back to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315934 (ITAT-RAJKOT)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DHEERAJ KUMAR GUPTA
• Assessee Lawyers: CHETAN AGARWAL
• Keywords: Set aside; Additional evidence
• Section: 271(1)(c); 2

Judgement Text

"ITA Nos. 255-257 & 259/Rjt/2025 A.Y 11-12 Vinod V Sanghani Page | 1 आयकर अपीलीय अिधकरण, राजकोट Ɋायपीठ, राजकोट। IN THE INCOME TAX APPELLATE TRIBUNAL, “SMC” RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.255 to 257 & 259/RJT/2025 Ǔनधा[रण वष[/Assessment Year : 2011-12 Vinod Vallabhbhai Sanghani AT: Matwa Vaya Khandera Post. Matwa, Jamnagar- 361013 बनाम/ Vs Income Tax Officer, Ward-3(5), Jamnagar, Tarangali Bldg, Income Tax Officer, Hospital Road, NR. Amber Cinema, P.N Marg, Jamnagar- 361 013 èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AWFPS 2366 C (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) Ǔनधा[ǐरती कȧ ओर से/Assessee by : Shri Chetan Agarwal, AR राजèव कȧ ओर से/Revenue by : Shri Dheeraj Kumar Gupta, Sr-DR सुनवाई कȧ तारȣख /Date of Hearing : 15/05/2025 घोषणा कȧ तारȣख /Date of Pronouncement : 16/05/2025 आदेश/Order Per Dr. Arjun Lal Saini, A.M Captioned four appeals filed by the assessee, pertaining to same Assessment Year (AY), that is, 2011-12, are directed against the separate orders passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short “the Ld. CIT(A)/NFAC”], under section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), three orders of Ld.CIT(A) are dated 19.02.2025 and one order of CIT(A) is dated 07.04.2025 in case of ITA No.257/RJT/2025. In ITA No.255/RJT/2025, the assessee has challenged the unexplained addition in quantum assessment. In ITA No.256/RJT/2025, the assessee has challenged the validity of penalty ITA Nos. 255-257 & 259/Rjt/2025 A.Y 11-12 Vinod V Sanghani Page | 2 levied u/s 271(1)(c) of the Act. In ITA No.257/RJT/2025, the assessee has challenged the validity of penalty levied u/s 271F of the Act and in ITA No.259/RJT/2025, the assessee has committed one time default for non- compliance of notice during assessment proceedings, therefore, assessing officer imposed penalty u/s 271(1)(b) of the Act. 2. All the four appeals are interconnected, and relate to one assessee, for one assessment year 2011–12, therefore with the consent of parties, these appeals have been clubbed and heard together and a consolidated order is being passed, to avoid the conflicting decisions. 3. At the outset of hearing, the Ld. Counsel for the assessee submits that assessee has made sufficient compliance during quantum assessment as well as penalty(ies) proceedings. However, when the proceedings before Ld.CIT(A) was going on, then, the assessee requested the ld. CIT(A) to avail VSVS-2020 Scheme and therefore assessee’s quantum appeal was dismissed, by ld CIT(A), on this count. However, later on, the assessee found difficult to deposit the tax amount under the VSVS-2020- Scheme, due to financial difficulty and could not pay the tax demanded by Department. The Ld. Counsel for the assessee contended that now the assessee wants to contest the appeal on merit, and wish to submit some additional documents and evidences before the assessing officer to prove his claim, therefore, the matter may be remitted back to the file of the Assessing Officer for fresh adjudication, on merit. The Ld. Counsel for the assessee stated that assessee has not furnished adequate documents and evidence before Assessing Officer as well as before Ld.CIT(A), and now, the assessee is willing to submit complete documents and evidences. The Ld. Counsel fairly submitted that one more opportunity should be given to the assessee to plead his case before Assessing Officer. The Ld. Counsel also ITA Nos. 255-257 & 259/Rjt/2025 A.Y 11-12 Vinod V Sanghani Page | 3 informs the Bench that appeal in ITA No.255/Rjt/2025, relates to quantum proceedings. Since the Tribunal is remitting the quantum proceedings back to the file of Assessing Officer, therefore various penalties imposed u/s 271(1)(c)/271F/271(1)(b) of the Act, may also be remitted back to the file of Assessing Officer on same footing. That is, when the quantum proceeding is remitted back to the file of the assessing officer, then in that circumstances, these penalties should also be restored back to the file of the assessing officer, for fresh adjudication, if any, in accordance with law. 4. The ld. DR for the Revenue, submitted that assessee wanted to avail VSVS-2020- Scheme, therefore, Ld.CIT(A), had rightly dismissed the appeal of the assessee, in quantum proceedings. Later on, the assessee could not adopt VSVS-2020- Scheme, due to financial difficulty, as the assessee was not in a position to deposit the tax demanded by the Department. Therefore, appeal may be revived and should be remitted back to the file of the assessing officer for fresh, adjudication, on merit. 5. I have heard both the parties and perused the materials available on record. I note that assessee wanted to avail VSVS-2020 -Scheme and informed the Ld.CIT(A) that he wanted to adopt VSVS-2020- Scheme, therefore, the quantum appeal was dismissed by Ld.CIT(A). However, later on, the assessee found difficulty to tax demanded by the Department, due to financial difficulty. Later on, the assessee informed the Ld.CIT(A) that he could not avail VSVS- 2020 Scheme, due to financial difficulties, as the assessee did not have money to pay the department in the said scheme. Now, Ld. Counsel for the assessee, stated that assessee wish to contest his case before lower authorities, by filing more documents and evidences, to prove his claim. Therefore, ld. Counsel prayed the Bench to remit the quantum proceeding before Assessing Officer ITA Nos. 255-257 & 259/Rjt/2025 A.Y 11-12 Vinod V Sanghani Page | 4 with a direction to adjudicate the issue afresh, on merit. The Ld. Counsel for the assessee also contended before the Bench that assessee wants to submit some detail, documents and evidence before Assessing Officer. I accept the prayer of Ld. Counsel for the assessee, therefore, in the interest of justice and fair play, I set aside the order of Ld.CIT(A) and remit the quantum proceedings back to file of Assessing Officer with a direction to adjudicate the issue afresh in accordance with law and assessee is permitted to furnish additional evidences, if any, as and when called for, by the Assessing Officer. 6. Since I have remitted back the quantum proceedings in ITA No.255/Rjt/2025 to the file of Assessing Officer, therefore, the penalties imposed u/s 271(1)(c)/271F/271(1)(b) of the Act will not survive. That is, when the matter in quantum proceedings have been restored to the file of Assessing Officer, the penalties do not have leg to stand. However, the Assessing Officer is given liberty to initiate fresh penalties, if any, in accordance with law, in fresh quantum proceedings. 7. In the combined result, assessee’s appeals (in ITA Nos. 255-257/Rjt/2025 and ITA No. 259/Rjt/2025) are treated as allowed for statistical purposes, in above terms. Order pronounced in the open court on 16/05/2025. Sd/- (Dr. A.L. SAINI) लेखा सदÖय/ACCOUNTANT MEMBER राजकोट /Rajkot Ǒदनांक/ Date: 16/05/2025 DKP Outsourcing Sr.P.S ITA Nos. 255-257 & 259/Rjt/2025 A.Y 11-12 Vinod V Sanghani Page | 5 आदेश कì ÿितिलिप अúेिषत/ Copy of the order forwarded to :  अपीलाथê/ The Appellant  ÿÂयथê/ The Respondent  आयकर आयुĉ/ CIT  आयकर आयुĉ(अपील)/ The CIT(A)  िवभागीय ÿितिनिध, आयकर अपीलीय आिधकरण, राजकोट/ DR, ITAT, RAJKOT  गाडªफाईल/ Guard File By order/आदेश से, // True Copy // सहायक पंजीकार आयकर अपीलȣय अͬधकरण, राजकोट "