Income Tax Appellate Tribunal - Ahmedabad
Smt. Monal Yashwantbhai Thakker, ... vs Acit, Central Circle-1(1), Ahmedabad on 13 October, 2021
IN THE INCOME TAX APPELLATE TRIBUNAL
AHMEDABAD "B" BENCH
(Conducted Through Virtual Court)
Before: Shri Rajpal Yadav, Vice President
And Shri Amarjit Singh, Accountant Member
ITA No. 1736/Ahd/2018
Assessment Year 2015-16
Smt. Monal Yashwant The ACIT,
Bhai Thakker, 19-21, Circle-1(1),
Narayan Chambers, Vs Ahmedabad
B/h, Patang Hotel, (Respondent)
Ashram Road, Ahmedabad
PAN: ACLPT2079H
(Appellant)
Revenue by: Shri R.R. Makwana, Sr. D.R.
Assessee by: None
Date of hearing : 08-10-2021
Date of pronouncement : 13-10-2021
आदे श/ORDER
PER : AMARJIT SINGH, ACCOUNTANT MEMBER:-
This assessee's appeal for A.Y. 2015-16, arises from order of the CIT(A)-11, Ahmedabad dated 27-06-2018, in proceedings under section 143(3) of the Income Tax Act, 1961; in short "the Act". I.T.A No. 1736/Ahd/2018 A.Y. 2015-16 Page No 2 Smt. Monal Yashwant Bhai Thakker vs. ACIT "1. The Ld. A. O. has erred in law and on facts computing income of Rs.24,40,300/-even though the appellant has provided all necessary explanations and details during the assessment proceedings.
2. The Id. AO has erred in law in expanding the limited scrutiny to complete scrutiny by going beyond the issue of verification by mismatch and expanding the scope of changing the head of income without seeking prior approval from the higher authority."
3. The fact in brief is that return of income declaring total income at Rs. 27,98,660/- was filed on 28th August, 2015. Subsequently, the assessee has filed revised return of income on 29th Sep, 2015 and 9th Jan, 2016 declaring total income of Rs. 4,06,510/-. The case of the assessee was subject to scrutiny assessment and notice u/s. 143(3) of the act was issued on 29th July, 2016. The assessment u/s. 143(3) of the act was finalized on 11th December, 2017 assessing the total income at Rs. 26,02,404/-. The Assessing Officer was of the view that assessee has wrongly computed total taxable income by changing the amount of interest and rent received from other sources to income from business and profession and incorrectly set off the income against brought forward business loss of Rs. 13,92,146/- which would not be available to the assessee.
4. Aggrieved assessee has filed appeal before the ld. CIT(A). The ld. CIT(A) has dismissed the appeal of the assessee. I.T.A No. 1736/Ahd/2018 A.Y. 2015-16 Page No 3 Smt. Monal Yashwant Bhai Thakker vs. ACIT
5. Heard both the sides and perused the material on record. The ld. CIT(A) had dismissed the appeal of the assessee holding that the contention of the assessee on the issue that the case was selected for limited scrutiny but the Assessing Officer made the detailed scrutiny which was beyond his power. In this connection, the ld. CIT(A) held that the limited scrutiny can be converted into full scrutiny with the approval of higher authorities and the assessee could not produce any evidences to show that approval from concerned authority was not taken. In this regard, we have perused the material on record and it is noticed that nowhere in the assessment record, the Assessing Officer has made any reference that any approval of the higher authority was taken for converting the case of the assessee from limited scrutiny to the detailed scrutiny. Under the circumstances, we opined that the decision of ld. CIT(A) is unjustified since the ld. CIT(A) has neither called any remand report from the Assessing Officer on the objection of the assessee regarding taking of approval from higher authority for converting limited scrutiny to the detailed scrutiny nor the ld. CIT(A) has given detailed reason along with the points for determination of his decision as prescribed in section 250(6) of the I.T. Act. Therefore, we are of the view that it would be appropriate to restore this case of the assessee to the file of the ld. CIT(A) for adjudicating afresh after obtaining report from the Assessing Officer as discussed supra in this order. Therefore, we restore this case to the file of the ld. CIT(A) for I.T.A No. 1736/Ahd/2018 A.Y. 2015-16 Page No 4 Smt. Monal Yashwant Bhai Thakker vs. ACIT adjudicating afresh as directed above. Accordingly, this ground of appeal of the assessee is allowed for statistical purposes.
6. In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 13-10-2021 Sd/- Sd/-
(RAJPAL YADAV) (AMARJIT SINGH) VICE PRESIDENT ACCOUNTANT MEMBER Ahmedabad : Dated 13/10/2021
आदे श क त ल प अ े षत / Copy of Order Forwarded to:-
1. Assessee
2. Revenue
3. Concerned CIT
4. CIT (A)
5. DR, ITAT, Ahmedabad
6. Guard file.
By order/आदे श से, उप/सहायक पंजीकार आयकर अपील य अ धकरण, अहमदाबाद