ATULKUMAR ARVINDBHAI PATEL,PETLAD V. THE INCOME TAX OFFICER,WARD-1(3)(1), PETLAD

ITA 193/AHD/2024

AI Insights

The case involves Atulkumar Arvindbhai Patel, the appellant, contesting an ex-parte re-assessment order under sections 144 and 147 of the Income Tax Act, 1961, for the assessment year 2011-12. The appellant, having migrated to the USA, was unaware of the appellate proceedings due to incorrect email notifications sent by the CIT(A). Upon returning to India and discovering the ex-parte order, he filed an appeal with a delay of 168 days, which the Tribunal condoned. The main issue in the appeal was the unexplained cash deposits and credit card expenses amounting to Rs. 50,35,332, which were added as undisclosed income. The Tribunal found merit in re-evaluating the case and thus remanded it back to the Assessing Officer.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 470083 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIGNESH DAS
• Assessee Lawyers: B T THAKKAR; A NOTARIZED AFFIDAVIT STATED
• Keywords: Set aside
• Section: 144

Judgement Text

"THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH Before: Shri TR Senthil Kumar, Judicial Member And Shri Narendra Prasad Sinha, Accountant Member Atulkumar Arvindbhai Patel, NavapuraShekkdi, Near Milk Dairy, Near Bhagyoday Rice Mill Petlad, Petlad-388450 PAN: AKVPP5063H (Appellant) Vs The ITO, Ward-1(3)(1), Petlad (Respondent) Assessee by: Shri BT Thakkar, A.R. Revenue by: Shri Rignesh Das, Sr. D.R. Date of hearing : 25-11-2024 Date of pronouncement : 07-02-2025 आदेश/ORDER PER : TR SENTHIL KUMAR , JUDICIAL MEMBER:- This appeal is filed by the assessee as against the ex-prate appellate order dated 22-06-2023 passed by the Commissioner of Income Tax, (Appeals), National Faceless Appeal Centre, Delhi arising out of the ex-parte re-assessment order passed u/s. 144 r.w.s 147 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) relating to the assessment year 2011-12. ITA No. 193/Ahd/2024 Assessment Year 2011-12 I.T.A No. 193/Ahd/2024 A.Y. 2011-12 Page No. Atulkumar Arvindbhai Patel vs. ITO 2 2. The registry has noted that there is a delay of 168 days in filing the above appeal. The assessee by a notarized affidavit stated that he has migrated to USA since 2018 and filed an appeal before CIT(A) in 2019 and he updated his email id in CPC portal in 2022. In Form No. 35, assessee mentioned email address is “[e-mail]” his tax practioner but the ld. CIT(A) wrongly sent email notices to “[e-mail]”. Thus, the assessee was not aware of hearing notices issued by ld. CIT(A) which resulted in passing ex-parte order. When assessee returned India in Jan, 2024, and on verification with the ITP and CPC portals, he found that ex-parte appellate order passed on 22- 06-2023, thereby filed the appeal with a delay of 168 days and requested to condone delay. The ld. Sr. D.R. Shri Rignesh Das, appearing for the Revenue has no objection in condoning the delay. Thus, the delay of 168 days in filing the appeal is hereby condoned. 3. On merits of the case, the assessee has not explained the cash deposits and credit card expenses amounting to Rs. 50,35,332/-, therefore, the same were added as undisclosed income of the assessee and demanded the tax thereon. Before us, the assessee filed a paper book containing statement of cash deposits in bank account, details of credit card repayments and other details. Therefore, in the interest of justice, we deem it fit to set aside the matter back to the file of jurisdictional Assessing Officer by imposing a cost of Rs. 5000/- (Rs. Five Thousand Only) payable by the assessee within 15 days from the receipt of this order to the Income Tax Department. On compliance of the above I.T.A No. 193/Ahd/2024 A.Y. 2011-12 Page No. Atulkumar Arvindbhai Patel vs. ITO 3 cost, Jurisdictional Assessing Officer is directed to pass fresh assessment order in accordance with law by giving adequate opportunity of hearing. 4. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 07-02-2025 Sd/- Sd/- (NARENDRA PRASAD SINHA) (TR SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 07/02/2025 आदेश क\u0006 \u0007\bत ल\fप अ\u000fे\fषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील\u0012य अ\u0013धकरण, अहमदाबाद "