CHANDRAKALABEN SANDIP SHAH,AHMEDABAD V. THE ITO, WARD-1(2)(1), AHMEDABAD

ITA 2056/AHD/2024

AI Insights

The case involves Chandrakalaben Sandip Shah, the appellant, who appealed against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, which dismissed her appeal ex-parte for non-persuasion and non-compliance with notices. The appellant contested the reassessment and additions made by the Assessing Officer under section 68 of the Income Tax Act, claiming they were illegal and without jurisdiction. The tribunal noted that the appellant had failed to respond to multiple notices but decided to remand the case for a de-novo assessment, allowing the appellant another opportunity to present her case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 25843 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MAMTA SINGH
• Assessee Lawyers: D.K PARIKH
• Keywords: Set aside; Reasonable cause
• Section: 68

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE DR.BRR KUMAR, VICE PRESIDENT I.T.A. No.2056/Ahd/2024 (Assessment Year: 2013-14 Chandrakalaben Sandip Shah, 3, Jayeshwar Society, Near Railway Crossing, Sahibaug, Ahmedabad-380004. Vs. The Income Tax Officer, Ward-1(2)(1), Ahmedabad. [PAN No. AZXPS5575J] (Appellant) .. (Respondent) Appellant by : Shri D.K Parikh, AR Respondent by: Smt. Mamta Singh, Sr. DR Date of Hearing 26.02.2025 Date of Pronouncement 28.02.2025 O R D E R Delay Condoned This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Appeal)/National Faceless Appeal Centre, Delhi vide order dated 18.02.2024 for the Assessment Year 2013-14. 2. The Assessee has taken the following grounds of appeal:- 1. The learned CIT(Appeals)/NATIONAL FACELESS APPEAL CENTRE | NFAC] DELHI has grievously erred both in law and on facts in dismissing the appeal of the appellant ex-parte on the ground of non persuasion though on facts and as per grounds, the reassessment was also illegal and without jurisdiction. The appellant was inclined to argue the appeal but due to reasons stated in the application for ITA No. 2056/Ahd/2024 Asst.Year 2013-14 - 2– condonation and affidavit, the appellant had no knowledge of the notices. 2. Without prejudice to the above ground, the Id CIT(A)/NFAC further erred in law and on facts in holding that as the appellant could not respond to notices, the order passed by Id AO did not call for any interference. On facts of the appellants case, the addition made and reassessment order passed ought to be quashed. It be so held now. 3. The Id CIT(A)/NFAC grievously erred in law and on facts in passing an exparte order and consequently, dismissing the appeal in toto since the appellant was prevented by sufficient and reasonable cause for not being able to respond to notices issued on her on her email and no physical notices were served. It be so held now and order passed by Id CIT(A)/NFAC be cancelled or set aside. 4. On the facts of the appellants case and considering legal position, the addition made by ld AO u/s 68 is uncalled for and against sanction of law. It may be so held now. 5. Without prejudice to the above, the lower authorities erred in law and on facts in making and sustaining addition of Rs. 7,28,800 when the capital gain on sale of shares based on documents furnished was genuine and hence exemption claimed ought to be allowed. It be directed to be allowed now. 6. Without prejudice to above, the Demand of Rs. 2,81,711/-raised by the Id AO is illegal and unenforceable in law in view of section 156 of the I.T Act as demand notice is signed even before passing [signing) of the assessment order. It be so held no and order passed and demand raised be cancelled 7. The appellant further prays that given a chance, the appellant shall fully respond to notices that may be issued by the CIT(A) /NFAC in the best interest of justice so that merits of the appellant can be finally decided. 8. The appellant craves leave to add, alter, modify or delete any of the grounds at the 3. On going through the record, I find that the assessee was awarded six opportunities of hearing on several occasions, but the assessee failed to comply with the notices and has not brought anything on record to rebut the finding of the Assessing Officer. Hence, the Ld.CIT(A) dismissed the ITA No. 2056/Ahd/2024 Asst.Year 2013-14 - 3– appeal of the assessee. The Ld. Counsel for the assessee prayed that given an opportunity, all the details/clarification/explanation would be provided to the revenue authorities. I find that assessee has not even complied before the Assessing Officer, hence in the interest of justice the matter is remanded to the Assessing Officer for conducting assessment de-novo. The assessee shall comply with the notices issued by the authorities without seeking any unnecessary adjournments. 4. In the result, the appeal of the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 28.02.2025 Sd/- (DR. BRR KUMAR) VICE PRESIDENT (True Copy) Ahmedabad; Dated 28.02.2025 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 "