Case Law Details
Amitkumar Chandulal Patel Vs ITO (ITAT Ahmedabad)
In the case of Amitkumar Chandulal Patel vs. ITO, the Income Tax Appellate Tribunal (ITAT) addressed an appeal concerning the addition of Rs. 18,305,000 under Section 68 of the Income Tax Act, 1961, related to unsecured loans. The assessee had challenged the addition, arguing that the Commissioner of Income-tax (Appeals) [CIT(A)] and the Assessing Officer had made errors in law and fact. The assessee also contended that additional evidence, including bank statements, was not admitted during the proceedings. The case primarily revolved around the lack of response from the assessee during assessment, which led to the addition of the unsecured loans.
The ITAT observed that the assessee had submitted substantial documents during the assessment but could not provide the bank statements to establish the genuineness of the unsecured loans. However, the bank statements were presented before the Tribunal, and the assessee requested them to be admitted as additional evidence. The CIT(A) had previously dismissed the appeal due to non-submission of required details, and the assessment was concluded based on non-response to notices. The ITAT, after considering the circumstances, decided to remand the matter back to the CIT(A) for a fresh examination, instructing the CIT(A) to consider the additional evidence provided by the assessee in accordance with Rule 46A of the Income-tax Rules, 1962. The case was remanded for a detailed review of the unsecured loans and related evidence. The appeal was allowed for statistical purposes, directing further action on the matter.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This appeal has been filed by the assessee against the order passed by the Ld. Commissioner of Income-tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi (hereinafter referred to as “CIT(A)” for short), dated 11.06.2024 passed under Section 250 of the Income-tax Act, 1961 [hereinafter referred to as “the Act” for short], for Assessment Year (AY) 2020-21.
2. The assessee has raised following grounds of appeal :-
“1. The appellant humbly submits that the Ld CIT(A) as well as Ld Assessing officer has erred in law as well on facts in making addition of Rs.18305000/- under section 68 of the Act.
2. The Ld Commissioner of Income Tax (A) as well as the assessing officer has erred on facts as well as in law in making addition of Rs. 739871.00 on a protective basis as unexplained investment by considering circle rate on reverse calculation basis on stamp duty paid divided by percentage rather than considering the circle rate based on Government Notification issued by Government of Gujarat.
3. The Ld Commissioner of Income Tax (A) as well as the assessing officer has erred on facts as well as in law in charging interest under section 234B and 234C of the Income Tax Act
4. The Ld CIT(A) has erred in not admitting additional evidence.”
3. At point Nos. 5 & 6 of the brief facts of the case submitted by the assessee, it was pleaded that the assessee is a sole owner and proprietor, and had already submitted substantial documents before the Assessing Officer during assessment proceedings, but could not produce the bank statements to prove genuineness during the assessment proceedings. However, he submitted that the same is being produced now before the Tribunal with a request to treat the bank statement as additional evidence and to consider the same. It has also been submitted that the PAN number of the lenders are available and based on that, the ITR can also be viewed by the department.
4. We have gone through the order of the ld. CIT(A) wherein the ld. CIT(A) has accorded an opportunity to the assesse and owing to non-submission of any details, the appeal of the assessee has been summarily dismissed. We also find that the assessment has been completed by the Assessing Officer owing to non-response of the assessee to the show-cause notice issued. Since the matter involved pertains to unsecured loans received by the assessee which needs detailed examination by the Revenue Authorities, we remand the matter to the ld. CIT(A) to take into consideration all the evidences filed by the assessee and examine the same in terms of Rule 46A of the Income-tax Rules, 1962 and pass order in accordance with law.
5. In the result, the appeal filed by the assessee is allowed for statistical purposes.
The order is pronounced in the open Court on 19.11.2024
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