KANAN ANILKUMAR PATEL ,SURAT V. ITO, WARD 2(3)(2), SURAT

ITA 905/SRT/2024

AI Insights

The case involves Kanan Anilkumar Patel, the appellant, who appealed against the order of the CIT(A), National Faceless Appeal Centre, Delhi, which was dated 09/10/2023 for the Assessment Year 2017-18. The appellant contested the ex-parte order passed by the CIT(A) and the additions made under section 68 of the Income Tax Act, which were confirmed by the CIT(A). The appellant also challenged the application of section 115BBE and the levy of a 25% surcharge. The Tribunal found that the appeal was initially time-barred due to an error in email communication by the CIT(A), which led to the passing of an ex-parte order. Consequently, the Tribunal set aside the CIT(A)'s order and remanded the case for a fresh decision on merits.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 837711 (ITAT-SURAT)
• Duration Of Justice: 1 year(s) 5 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 22-08-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY UKE
• Assessee Lawyers: SAPNESH SHETH
• Keywords: Condonation of delay; Set aside; Unexplained cash credit

Judgement Text

" आयकर अपीलीय अिधकरण,सूरत \u0010ा यपीठ, सूरत । IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT [conducted through Hybrid mode] \u0015ी संजय गग\u0019, \u0010ा ियक सद\u001b एवं \u0015ी िबजया न ा !ुसेथ, लेखा सद\u001b क े सम'। ] ] Before Shri Sanjay Garg, Judicial Member And Shri Bijayananda Pruseth, Accountant Member आयकर अपील सं /ITA No.905/SRT/2024 िनधा \u000fरण वष\u000f /Assessment Year : 2017-18 Kanan Anilkumar Patel 92, Bhaganagar Society Near Gautam Park Amroli Sayan Road Surat – 394 107 बनाम/ v/s. The Income Tax Officer Ward-2(3)(2) Surat – 395 001 \u0013थायी लेखा सं./PAN: ARGPP 6569 E (अपीलाथ(/ Appellant) (!) यथ(/ Respondent) Assessee by : Shri Sapnesh Sheth, Advocate Revenue by : Shri Ajay Uke, Sr.DR सुनवाई की तारीख/Date of Hearing : 19/11/2025 घोषणा की तारीख /Date of Pronouncement: 17/02/2026 आदेश/O R D E R Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’] dated 09/10/2023 for the Assessment Year (AY) 2017-18. 2. The assessee has raised the following grounds of appeal: “1. On the facts and circumstances of the case as well as law on the subject, the learned commissioner of Income Tax(Appeals), NFAC has erred in passing ex-parte order without giving finding on merits of the case. 2. On the facts and circumstances of the case as well as law on the subject, the learned commissioner of Income Tax (Appeals), NFAC has erred in confirming the action of Printed from counselvise.com ITA No.905/SRT/2024 Kanan Anilkumar Patel vs. ITO Asst. Year : 2017-18 2 assessing officer in making addition Rs. 27,40,000/-u/s 68 as unexplained cash credit. 3. On the facts and circumstances of the case as well as law on the subject, the learned commissioner of Income Tax(Appeals), NFAC has erred in confirming the action of assessing officer in invoking provisions of section 115BBE of the I.T. act and levying surcharge @25% which is not applicable on above addition. 4. It is therefore prayed that above addition made by assessing officer and confirmed by Commissioner of Income-tax (Appeals) may please be deleted. 5. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal.” 3. The appeal of the assessee is time-barred by approximately 8 months, however, no note has been put by the Registry in this respect. A separate application for condonation of delay in filing the appeal has been filed, wherein, it has been pleaded that the Ld. CIT(A) sent the notices on a different email and not at the email mentioned by the assessee in appeal form No.35, resulting into passing of the ex-parte order by the Ld. CIT(A). It has also been submitted that even the impugned order of the Ld. CIT(A) was not available on income-tax Portal. The assessee had filed grievance petition, in this respect and, thereafter, the copy of the order of the Ld. CIT(A) was made available to the assessee. The Ld. Counsel for the assessee has further brought our attention to the impugned order of the Ld. CIT(A) to show that the Ld. CIT(A) has dismissed the appeal of the assessee for want of prosecution without giving any finding on merits. He, therefore, has submitted that the matter may be restored to the file of the Ld. CIT(A) for decision of the appeal of the assessee on merits. 4. The Ld. DR could not rebut the aforesaid factual position on record. 5. Considering the rival submissions, in our view, the interests of justice will be well-served if the assessee be given an opportunity to present his case Printed from counselvise.com ITA No.905/SRT/2024 Kanan Anilkumar Patel vs. ITO Asst. Year : 2017-18 3 before the Ld. CIT(A). Accordingly, the impugned order of the Ld. CIT(A) is hereby set aside and matter is restored to the file of the Ld. CIT(A) with a direction to decide the appeal of the assessee afresh on merits. The Ld. CIT(A) will give an opportunity to the assessee to present his case and furnish the necessary details and evidences. The Ld. CIT(A), if so require, may call upon the remand report from the AO. Thereafter, the Ld. CIT(A) will decide the appeal of the assessee in accordance with law. The assessee will remain vigilant and promptly respond to the notices issued by the Ld. CIT(A) and furnish the necessary details and evidences before the Ld. CIT(A). 6. In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order is pronounced under provision of Rule 34 of ITAT Rules, 1963 on 17/02/2026. Sd/- Sd/- (Bijayananda Pruseth) Accountant Member ( Sanjay Garg ) Judicial Member िदनांक/Dated 17 /02/2026 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश की ितिलिप अ!ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\" / The Appellant 2. #थ\" / The Respondent. 3. संबंिधत आयकर आयु% / Concerned CIT 4. आयकर आयु% ) अपील ( / The CIT(A)- (NFAC), Delhi 5. िवभागीय ितिनिध , अिधकरण अपीलीय आयकर , सूरत /AR,ITAT, Surat/Ahmedabad. 6. गाड\u000f फाईल / Guard file. आदेशानुसार/ BY ORDER, स#ािपत ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT,Surat/Ahmedabad Printed from counselvise.com "