Bimal Ravjibhai Patel Vs DCIT (ITAT Ahmedabad)
This case involves an appeal filed by the assessee challenging the order of the Commissioner of Income-tax (Appeals)-11, Ahmedabad, under Section 250 of the Income-tax Act, 1961, for the Assessment Year 2013-14. The primary grounds include disputing the validity of the notice issued under Section 148 and the subsequent assessment initiated under Section 147 of the Act. The assessee also contested the addition of ₹10,50,528, which was calculated by estimating a 12% profit on unaccounted receipts of ₹87,54,402 from the sale of plots. The grounds raised sought relief by quashing the proceedings and deleting the additions.
The CIT(A) had determined the profit on unaccounted receipts at 12%, relying on evidence obtained during a survey under Section 133A. Despite the assessee disclosing ₹10.27 lakhs in income, the Assessing Officer did not allow deductions for unaccounted cash expenses due to a lack of substantiating details. After reviewing the facts, the Tribunal accepted the assessee’s proposal to calculate profit at 6% instead of 12%, thus providing partial relief. The procedural aspects under Section 148 were not adjudicated further as the matter was resolved based on the merits of income estimation. Consequently, the appeal was partly allowed, reflecting a balanced resolution.
