DIXITKUMAR BHIKHALAL MORKHIYA,AHMEDABAD V. THE ITO, WARD-2(2)(1), AHMEDABAD

ITA 793/AHD/2023

AI Insights

The case involves Dixitkumar Bhikhalal Morkhiya, the proprietor of Silky Fashion World, who appealed against an ex-parte appellate order and an ex-parte assessment order under section 144 of the Income Tax Act, 1961 for the Assessment Year 2017-18. The assessee had not filed his return of income nor responded to notices, leading to an addition under section 69A of the Act due to unexplained cash deposits during the demonetization period. The CIT(A) dismissed the appeal for non-prosecution, prompting the assessee to appeal to the Income Tax Appellate Tribunal. The Tribunal found reasonable cause for the delay in filing the appeal and set aside the case for a fresh assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 23255 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Reasonable cause
• Section: 144; 142(1); 139(1); 69A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH Before: DR. BRR Kumar, Vice President And Shri T.R. Senthil Kumar, Judicial Member Dixitkumar Bhikhalal Morkhiya C/o. Divyang Shah & Co. Chartered Accountants, 201, 2nd Floor, Devashish Complex, Nr. Regenta Central Antarim Hotel, Off C.G. Road, Ahmedabad-380006 PAN: CEFPM9022P (Appellant) Vs The ITO, Ward-2(2)(1), Ahmedabad (Respondent) Assessee Represented: Shri Maulik Kansara, A.R. Revenue Represented: Shri Rignesh Das, Sr.D.R. Date of hearing : 30-12-2024 Date of pronouncement : 31-12-2024 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This appeal is filed by the Assessee as against the ex-parte appellate order dated 18.07.2023 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, (in short referred to as “CIT(A)”), arising out of the exparte assessment order passed under section 144 of the Income Tax Act, 1961 ITA No. 793/Ahd/2023 Assessment Year 2017-18 I.T.A No. 793/Ahd/2023 A.Y. 2017-18 Page No Dixitkumar Bhikhalal Morkhiya vs. ITO 2 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2017-18. 2. Brief facts of the case is that the assessee is an individual and Proprietor of Silky Fashion World. For the Asst. Year 2017-18, assessee has not filed his Return of Income u/s. 139(1) or in response to 142(1) notice. The assessee made cash deposit of Rs.16,49,790/- during demonetization period. Hence a show cause notice was issued to the assessee to explain the details, which was not responded by the assessee and resulted in making addition u/s 69A of the Act of Rs. 50,24,243/- namely cash deposit in his bank account for the entire financial year. 3. Aggrieved against the same, assessee filed an appeal before Ld. CIT(A) who has dismissed the appeal for non-prosecution. 4. Aggrieved against the same, assessee is in appeal before us with a delay of 24 days in filing the appeal. The assessee explained that the delay is because of change in Chartered Accountant thereby delay to be condoned. The assessee also filed a Paper Book placing on record, the bank details of the assessee and other details namely Shop and Establishment Certificate of Silky Fashion World, rental agreement, professional tax registration certificate, copy of the ledger account of purchase of Silk Sarees from various parties and requested to condone the delay and set aside the assessment to the file of Assessing Officer for passing fresh order on merits. I.T.A No. 793/Ahd/2023 A.Y. 2017-18 Page No Dixitkumar Bhikhalal Morkhiya vs. ITO 3 5. Ld. D.R. appearing for the Revenue supported the order passed by the Assessing Officer and requested to levy cost to condone the delay. 6. We have perused the materials available on record as well as the Affidavit and Written Submissions filed by the assessee. We find that a reasonable cause for filing the appeal with a delay of 24 days, hence the same is hereby condoned. Since the assessee has filed all relevant documents before this Tribunal, we deem it fit to set aside the same by imposing cost of Rs. 2,000/- payable by the assessee to Prime Minister National Relief Fund within a period of 15 days of receipt of this order copy. On production of the receipt of the same, the Jurisdictional Assessing Officer is to pass fresh assessment order in accordance with law by giving proper opportunity of hearing to the assessee. 7. In the result, the appeal filed by the Assessee is allowed for statistical purpose. Order pronounced in the open court on 31-12-2024 Sd/- Sd/- (DR. BRR KUMAR) (T.R. SENTHIL KUMAR) VICE PRESIDENT JUDICIAL MEMBER Ahmedabad : Dated 31/12/2024 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) I.T.A No. 793/Ahd/2023 A.Y. 2017-18 Page No Dixitkumar Bhikhalal Morkhiya vs. ITO 4 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद "