DHARMENDRA SUMATICHANDRA SHETH, HUF,AHMEDABAD V. THE DCIT, CIRCLE-2(1)(1), AHMEDABAD

ITA 1703/AHD/2024

AI Insights

The case involves Dharmendra Sumatichandra Sheth HUF, who appealed against the order of the Commissioner of Income-tax (Appeals), National Faceless Appeal Centre, Delhi, which had dismissed their appeal on grounds of limitation without addressing the merits. The primary contention was the non-condonation of a 28-day delay in filing the appeal, which the assessee argued was not intentional and was due to a lack of proper notice. The Tribunal found merit in the assessee's arguments and decided to remand the case back to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 25487 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 03-12-2024
• Assessment Year: 2020-2021
• Appeal Filed On: 25-09-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ADJOURNMENT APPLICATION FILED
• Assessee Lawyers: RUTVIJ PATEL
• Keywords: Opportunity of being heard; Unexplained cash credit
• Section: 250; 68

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. No. 1703/Ahd/2024 (Assessment Year: 2020-21) Dharmendra Sumatichandra Sheth HUF, 507, Abhishree Avenue, Opp. Hanuman Temple, Nr. Nehrunagar Cross Road, Ahmedabad [PAN : AAEHD 7962 G] Vs. DCIT, Circle 2(1)(1), Ahmedabad (Appellant) .. (Respondent) Appellant by : Shri Rutvij Patel, AR Respondent by: Adjournment application filed Date of Hearing 03.12.2024 Date of Pronouncement 06.12.2024 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income-tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi (hereinafter referred to as \"CIT(A)\" for short), dated 30.07.2024 passed under Section 250 of the Income-tax Act, 1961 [hereinafter referred to as \"the Act\" for short], for Assessment Year (AY) 2020-21. 2. The Assessee has taken following grounds of appeal:- “[A] Dismissal of appeal by not condoning the delay. 1. The learned CIT(A) erred in law and on facts by deciding the appeal ex- parte especially when the appellant was not served with the hearing notice dated 24/07/2024 on email and thus, the appellant was deprived of the opportunity of being heard. ITA No. 1703/Ahd/2024 Dharmendra Sumatichandra Sheth HUF Asst. Year : 2020-21 - 2– 2. The learned CIT(A) erred in law and on facts in not condoning the mere delay of 28 days in filing the appeal and thereby dismissing the appeal in limine. 3. The learned CIT(A) erred in law and on facts in not condoning the delay especially when the delay was not caused in order to delay the proceedings. 4. The learned CIT(A) erred in law and on facts in not condoning the delay especially when sufficient cause had arisen which had caused meager delay of 28 days in filing the appeal. 5. The learned CIT(A) erred in law and on facts in not condoning the delay especially when the case of the appellant was meritorious but the appellant was not provided an opportunity of being heard before the Ld. A. O. 6. The learned CIT(A) erred in law and on facts in not condoning the delay especially when the case of the appellant was meritorious but the appellant was not provided an opportunity of being heard before the Ld. A. Ο. 7. The learned CIT(A) erred in law and on facts in not condoning the delay especially when the assessee was always provided less than seven days' time, in violation of the SOP for faceless assessment, to respond to the show cause notice issued by the Ld. Department. 8. The learned CIT(A) erred in law and on facts by not deciding the issue of the \"Addition u/s. 68 read with sec. 115BВЕ towards unexplained credit in the form of unsecured loan Rs. 95,00,000/-\" on merits & on the grounds of appeal raised before the Ld. CIT(A) and by not setting aside the addition made by the Ld. A. O. 9. The learned CIT(A) erred in law and on facts by not deciding the issue of the \"Addition u/s. 68 read with sec. 115BBE towards unexplained credit in the form of sundry creditors of Rs. 2,39,68,046/-\" on merits & on the grounds of appeal raised before the Ld. CIT(A) and by not setting aside the addition made by the Ld. A. O.” 3. In this case, the Assessment order has been passed by the Assessment Unit, Income-Tax Department on 25.09.2022 determining total income of the assessee at Rs. 3,34,68,046/-, against the returned income of Rs.(-) 5,88,84,943/-, by making additions of Rs.2,39,68,046/- on account of ITA No. 1703/Ahd/2024 Dharmendra Sumatichandra Sheth HUF Asst. Year : 2020-21 - 3– Sundry Creditors and Rs. 95,00,000/- towards Loan Creditors u/s. 68 r.w.s. 115BBE of the Act. 4. Aggrieved, the assessee filed appeal before the ld. CIT(A) who dismissed the appeal of the assessee in limine, on grounds of limitation, without dealing with the grounds of appeal raised by the assessee on merit. 5. Aggrieved with the order of the ld. CIT(A), the assessee has filed an appeal before the Tribunal. 6. Before us, the ld. AR submitted that the ld. CIT(A) has not condoned the delay of 28 days in filing of the appeal and dismissed the appeal of the assessee and also the assessee has not received the show-cause notice from the AO. The ld. AR prayed that given an opportunity due compliance will be made by the assessee before the Assessing Officer. Having gone through the record before us, we find that the prayer of the ld. AR can be considered. Hence, in the interest of justice, the matter is referred to the Assessing Officer for initiation of the assessment proceedings de novo. 7. In the result, the appeal of the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 06.12.2024 Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Ahmedabad; Dated 06/12/2024 btk ITA No. 1703/Ahd/2024 Dharmendra Sumatichandra Sheth HUF Asst. Year : 2020-21 - 4– आदेश की \u0007ितिलिप अ\rेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u0007 / The Appellant 2. \b\tथ\u0007 / The Respondent. 3. संबंिधत आयकर आयु\u0015 / Concerned CIT 4. आयकर आयु\u0015(अपील) / The CIT(A)- 5. िवभागीय \bितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड\u001f फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation …05.12.2024….. 2. Date on which the typed draft is placed before the Dictating Member …05 12.2024 3. Other Member… 05.12.2024……………… 4. Date on which the approved draft comes to the Sr.P.S./P.S … 05.12.2024…………. 5. Date on which the fair order is placed before the Dictating Member for pronouncement 06.12.2024. 6. Date on which the fair order comes back to the Sr.P.S./P.S …06.12.2024……………. 7. Date on which the file goes to the Bench Clerk 06.12.2024……….…. 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order 10. Date of Dispatch of the Order…………………………………… "