AKASH NARESHBHAI PANCHAL,AHMEDABAD V. ITO WARD 1(2)(1), AHMEDABAD, AHMEDABAD

ITA 1210/AHD/2024

AI Insights

The case involves an appeal by Akash Nareshbhai Panchal against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), which dismissed his appeal ex-parte for the Assessment Year 2017-18. The primary contention was that the notice for the appeal was sent to an incorrect email address, leading to the absence of the appellant during the hearing. Additionally, the appellant contested the addition of Rs 7,88,01,702 as unexplained money or unexplained cash credit under sections 69A and 68 of the Income Tax Act. The tribunal noted the procedural error in the ex-parte decision and remanded the case for a fresh hearing on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 25164 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ADJOURNMENT APPLICATION FILED
• Assessee Lawyers: SULABH PADSHAH
• Keywords: Set aside; Opportunity of being heard; Unexplained cash credit
• Section: 68; 69A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE DR.BRR KUMAR, VICE PRESIDENT & SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER I.T.A. No.1210/Ahd/2024 (Assessment Year: 2017-18) Akash Nareshbhai Panchal, 13, Pallavit Society, Sahibaug, Ahmedabad-380004. Vs. Income Tax Officer, Ward-1(2)(1) Ahmedabad. [PAN No.BSHPP3224R] Appellant by : Shri Sulabh Padshah, A.R. Respondent by: Adjournment Application Filed Date of Hearing 13.01.2025 Date of Pronouncement 24.01.2025 O R D E R PER: DR. BRR KUMAR, VICE PRESIDENT: This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Appeal)/National Faceless Appeal Centre (NFAC), Delhi, vide order dated 25.01.2024 for the Assessment Year 2017-18. 2. The Assessee has taken the following grounds of appeal:- Your appellant being aggrieved by the order passed by the learned Ld. Commissioner of Income-tax (Appeals) (herein after referred to as Ld. CIT (Appeals). Income tax Department, National Faceless Appeal Centre (NFAC) presents this appeal against the same on the following amongst other grounds 1. The Learned CIT (Appeals) has erred in passing an Ex-parte order and dismissing the appeal of the Appellant without appreciating the facts and circumstances of the case. It is submitted that the Appellant could not responded to the notice issued by CIT Appeal, as the notice was issued on wrong email address and not on email (अपीलाथᱮ /Appellant ( ᮧ᭜यथᱮ /Respondent) ITA No.1210/Ahd/2024 Asst.Year 2017-18 - 2– address stated in Form 35. In view of this, the matter please be set aside to lower authorities with a directions to hear the appellant again on merits and the additions made of Rs 7,88,01,702/- be deleted after fresh verification of details and evidences. The same please be held accordingly. 2. The Learned CIT (Appeals) has erred in dismissing the appeal, invoking provisions of sec. 249(4)(b) holding that appellant has failed to make payment of amount equal to advance tax, without appreciating the facts of the case properly and judiciously. It is submitted that the provisions of sec. 249(4)(b) are not applicable in case of Appellant. Therefore the order passed by Learned CIT (Appeals) be set aside and quashed being illegal and unsustainable and the necessary directions be given to the Learned CIT (Appeals) that the issue involved please be decided on merits of the case. 3. The Ld. Assessing Officer has erred in making the addition of Rs 7,88,01,702/- treating the cash deposits and credit entries reflected in bank accounts as Unexplained money u/s 69A or alternatively Unexplained cash credit u/s 68 of the Act. It is submitted that the complete details and documentary evidences explaining the source of cash deposits and credit entries totaling to Rs 7,88,01,702/- were available at that time and are also available now with Appellant. On the facts and circumstances of the case, there is no question of treating cash deposits and credit entries either unexplained money or Unexplained cash credit. On the facts and circumstances of the case, the huge addition made of Rs 7,88,01,702/-treating the same as Unexplained money u/s 69A of the Act is incorrect and it is therefore prayed before your honour that the matter may please be set aside to Ld.CIT(A)/to Ld.AO for the verification of details and impugned addition made please be deleted in the interest of justice. 4. The Order passed by the Learned CIT (Appeals) is bad in law and contrary to the provisions of law and facts. It is submitted that the same be held so now. Your appellant craves leave to add, alter and/or to amend all or any of the grounds before the final hearing of appeal. 3. At the outset, both the parties fairly submitted that an ex-parte order has been passed by the Ld. CIT(A) without going into the merits of the case and submitted that the matter may be remanded to the Ld. CIT(A) to adjudicate on merits of the issue. Hence, the matter is being remanded to Ld. CIT(A) to provide an opportunity of being heard as per the procedure in force after issuance of a valid notice to the assessee. ITA No.1210/Ahd/2024 Asst.Year 2017-18 - 3– 4. In the result, the appeal of the assessee is allowed for statistical purpose. This Order pronounced in Open Court on 24.01.2025 Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (DR. BRR KUMAR) JUDICIAL MEMBER VICE PRESIDENT (True Copy) Ahmedabad; Dated 24.01.2025 Manish, Sr. PS TRUE COPY आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant 2. ᮧ᭜यथᱮ / The Respondent. 3. संबंिधत आयकर आयुᲦ / Concerned CIT 4. आयकर आयुᲦ(अपील) / The CIT(A)- 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडᭅ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad "