The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) set aside the order passed by Commissioner of Income Tax (Appeals),CIT(A) and restored the matter back to the file of Jurisdictional Assessing Officer for fresh consideration, imposing a cost of Rs.10,000 on the assessee for non-compliance with notices.
Anmol Developers, appellant-assessee, a firm engaged in real estate business, failed to file its regular return of income for A.Y. 2017-18, prompting the Assessing Officer to issue notices under Sections 148 and 142(1) of the Act.
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Additions included Rs.7.22 crores for unexplained investment in immovable property under Section 69. The assessee, Anmol Developers, aggrieved by the ex-parte assessment order of the Assessing Officer (AO), appealed before the CIT(A), which was dismissed citing non-payment of advance tax.
The assessee was aggrieved by the CIT(A)’s decision,so appealed before the Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench.
The assessee’s counsel,Jimi Patel argued that the CIT(A) wrongly dismissed the appeal due to alleged non-payment of advance tax, and requested the Tribunal to remand the matter for a fresh hearing, ensuring full compliance by the assessee
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The Tribunal carefully considered the submissions and found that the Assessing Officer’s addition of Rs. 7.22 crores for unexplained investment in immovable property was based on the assessee’s failure to provide evidence of source of income, despite six opportunities given.
The two-member bench comprising TR Senthil Kumar (Judicial Member) and Annapurna Gupta (Accountant Member) observed that the Assessing Officer’s addition of Rs. 7.22 crores required verification, and thus, set aside the orders passed by the lower authorities and restored the matter back to the file of the Jurisdictional Assessing Officer with a direction to consider the issue afresh.
The Tribunal imposed a cost of Rs. 10,000 on the assessee for its failure to respond to notices, payable within two weeks to the Gujarat State Legal Services Authority, Ahmedabad, and directed the Assessing Officer to reconsider the issue after giving due opportunity of hearing.
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In short,the appeal filed by the assessee was allowed for statistical purposes.
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