KALPESHKUMAR JAYANTILAL PATEL,MEHSANA V. THE ITO, WARD-1, MEHSANA

ITA 74/AHD/2025

AI Insights

The case involves Kalpeshkumar Jayantilal Patel, the appellant, contesting an order from the Commissioner of Income Tax (Appeals)/National Appeal Centre, which was deemed to have been passed without valid jurisdiction and in violation of the principles of natural justice. The appellant challenged the addition of Rs.13,10,000 as unexplained cash under section 69A of the Income Tax Act. The Tribunal found that the CIT(A) had dismissed the appeal without adjudicating on its merits and remanded the case for a de-novo assessment by the Assessing Officer.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 40801 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ADJOURNMENT APPLICATION
• Assessee Lawyers: ANIL KSHATRIYA
• Keywords: Condonation of delay; Set aside; Principle of natural justice

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE DR. BRR KUMAR, VICE PRESIDENT & MS SUCHITRA KAMBLE, JUDICIAL MEMBER I.TA. Nos.74-75/Ahd/2025 (Assessment Year: 2017-18) Kalpeshkumar Jayantilal Patel, E-13, Ramkrishna Market, Mal Godown, Mehsana-384002. Vs. The Income Tax Officer, Ward-1, Mehsana. [PAN No.ALHPP9324N] (Appellant) .. (Respondent) Appellant by : Shri Anil Kshatriya, AR Respondent by: Adjournment Application Date of Hearing 11.03.2025 Date of Pronouncement 13.03.2025 O R D E R PER: DR. BRR KUMAR, VICE PRESIDENT: The captioned appeals have been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals)/National Appeal Centre vide order dated 21.11.2024 passed for the Assessment Year 2017-18, involving quantum appeal and levy of penalty. 2. The Assessee has taken the following grounds of appeal:- (1. On the facts and circumstances of the case and in law, the Order so passed by the Ld. CIT(A) NFAC is bad in law, illegal, invalid as passed without assuming a valid jurisdiction, besides ITA Nos. 74-75/Ahd/2025 Asst.Year –2017-18 - 2– being in violation of the principle of natural justices & equity, as having being passed arbitrarily. 2. On the facts and circumstances of the case and in law, the Ld. CIT(A) NFAC has grossly erred in outrightly dismissing the appeal without adjudicating the appeal on its own merits; as such liable to be quashed and set aside. 3. On the facts and circumstances of the case and in law, the Ld. CIT(A) has further erred in denying justice, without any justification and thereby further erred in sustaining addition of Rs.13,10,000/- representing unexplained cash u/s.69A of the Act so made by the A.O. 3. At the outset the Ld.AR for the assessee submitted that during the appellate proceedings the assessee has made submission along with the relevant documents & information and also mentioned the reasons for the condonation of delay in filing the appeals. The Ld.CIT(A) has dismissed the appeal of the assessee without adjudicating the ground of appeal on merits. We also find that assessee has not complied even before the Assessing Officer, hence in the interest of justice the matter is remanded to Assessing Officer for conducting assessment de-novo. ITA No.75/Ahd/2025 for AY 2017-18 4. Since the quantum appeal stands set-aside to the Assessing Officer for framing assessment de-novo, the penalty levied u/s.271AAC(1) of the Act is hereby deleted. The Assessing Officer is at liberty to initiate the penalty based on the outcome of the assessment order passed in consequences ITA Nos. 74-75/Ahd/2025 Asst.Year –2017-18 - 3– to this order. The assessee shall comply with all the notices issued by the Assessing Officer from time to time failing which, the AO shall initiate penalty proceedings as per the provisions of the Act. 5. In the combined result, both the appeals of the assessee are allowed for statistical purposes. This Order pronounced in Open Court on 13.03.2025 Sd/- Sd/- (SUCHITRA KAMBLE) (DR. BRR KUMAR) JUDICIAL MEMBER VICE PRESIDENT (True Copy) True Copy) Ahmedabad; Dated 13.03.2025 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 "