VIVA STYLE AND FASHION (INDIA) LIMITED,AHMEDABAD V. INCOME TAX OFFICER, WARD 4(1)(1), OLD WARD 4(1)(4), AHMEDABAD

ITA 579/AHD/2025

AI Insights

This case involves an appeal by Viva Style Fashion (India) Ltd. against the order of the National Faceless Appeal Centre (NFAC), Delhi, which pertained to the assessment year 2012-13. The primary contention was regarding the addition of Rs. 79,59,625 made under section 69 of the Income Tax Act, which the assessee argued was based on insufficient and vague reasons for reopening the assessment under section 147. The Tribunal noted that the details and evidences provided by the assessee were not considered by the Assessing Officer or the CIT(A), leading to the decision to remand the case for a thorough re-examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 783543 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-11-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 18-03-2025
• Other Referred Cases: M/s. Raghuvir Exim Ltd.
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: B.P. SRIVASTAVA
• Assessee Lawyers: CHETAN AGARWAL
• Keywords: Principle of natural justice; Borrowed satisfaction
• Section: 147; 69

Judgement Text

"THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH Before Dr. BRR Kumar, Vice President And Ms. Suchitra Kamble, Judicial Member Viva Style Fashion (India) Ltd., 52/1, FF Ganesh Nagar, Maruti Tenament, Isanpur, Ahmedabad PAN: AACCV6583E (Appellant) Vs The ITO, Ward- 4(1)(1), Old Ward 4(1)(4), Ahmedabad (Respondent) Assessee by: Shri Chetan Agarwal, A.R. Revenue by: Shri B.P. Srivastava, Sr. D.R. Date of hearing : 25-09-2025 Date of pronouncement : 04-11-2025 आदेश/ORDER Per Suchitra Kamble, Judicial Member: This is an appeal filed against the order dated 10-02- 2025 passed by National Faceless Appeal Centre (NFAC), Delhi for assessment year 2012-13. 2. The grounds of appeal are as under:- “1. The Ld.CIT(A) erred in law as well as on facts in setting aside issue to the file of Ld. AO for denovo assessment, he ought to have decided the issue considering the facts and circumstances of the case. ITA No. 579/Ahd/2025 Assessment Year 2012-13 Printed from counselvise.com I.T.A No. 579/Ahd/2025 Viva Style & Fashion (India) Ltd., A.Y. 2012-13 2 2. The Ld. CIT(A) erred in law as well as on fact in se upholding an addition of Rs. 79,59,625/- made by Ld. AO u/s 69 of the Act.” Additional Grounds of Appeal “1. The Ld.AO erred in law as well as on facts in reopening assessment u/s 147 on invalid, insufficient, incorrect and vague reasons recorded for reopening without any independent application of mind and on borrowed satisfaction.” 3. The assessee company filed return of income on 05-02- 2013 declaring total income at Rs. 83,960/-. It was processed u/s. 143(1) of the Act on 23-03-2013. Information was received on 31-03-2015 that during the case of assessment proceedings in the the case of M/s. Raghuvir Exim Ltd. for assessment year 2012-13, it was observed that M/s. Viva Style and Fashion (India) Ltd. had invested an amount of Rs. 83,38,500/- in purchase of shares of M/s. Raghuvir Exim Ltd. for assessment year 2012-13. On verification of the return of income filed by the assessee, it is seen that the assessee has shown investment of Rs. 3,07,09,625/- in unquoted shares for assessment year 2011- 12 and shown investment of Rs. 3,10,85,500/- in unquoted shares during the assessment year 2012-13. Thus, the increase in investment of Rs. 83,38,500/- during assessment year 2012- 13 is Rs. 3,78,875/- only as per the balance sheet filed as against investment of Rs. 83,38,500/- being made for purchase of shares of M/s. Raghuvir Exim Ltd.. After recording the reasons, the statutory notices were issued and the assessee filed its reply undated to the Assessing Officer. But at the time of assessment proceedings as well as before the CIT(A), the evidences submitted before the authorities were not taken into account. Thus, the addition was made to that extent. Printed from counselvise.com I.T.A No. 579/Ahd/2025 Viva Style & Fashion (India) Ltd., A.Y. 2012-13 3 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. The ld. A.R. submitted that both the authorities have not considered the details/evidences filed before the authorities, the matter may be remanded back to the file of Assessing Officer for proper verification of the details and give proper opportunity of hearing to the assessee. 6. The ld. D.R. relied upon the order of the CIT(A). 7. We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that though the details were filed before the authorities, the same was not taken into account by the Assessing Officer as well as by the CIT(A). Therefore, it will be appropriate to remand this matter back to the file of the Assessing Officer for proper verification of the evidences and adjudicate the same on merit. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice. 8. In the result, the appeal of the assessee is partly allowed for statistical purpose. Order pronounced in the open court on 04-11-2025 Sd/- Sd/- (Dr. BRR Kumar) (Suchitra Kamble) Vice President Judicial Member Ahmedabad : Dated 04/11/2025 आदेश क\u0006 \u0007\bत ल प अ\u000fे षत / Copy of Order Forwarded to:- Printed from counselvise.com I.T.A No. 579/Ahd/2025 Viva Style & Fashion (India) Ltd., A.Y. 2012-13 4 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील\u0012य अ\u0013धकरण, अहमदाबाद Printed from counselvise.com "