MAHENDRA MANILAL PATEL,AHMEDABAD V. DCIT, CIRCLE 3(1)(1), AHMEDABAD

ITA 1857/AHD/2025

AI Insights

This case involves an appeal by Mahendra Manilal Patel against the order of the Commissioner of Income-Tax (Appeal)/National Faceless Appeal Centre (NFAC), which was related to the Assessment Year 2019-20. The primary issues in the appeal included the validity of the order passed by the lower authorities, the reopening of assessment under section 148 of the Income Tax Act, and various disallowances and additions made under different sections of the Act. The Tribunal noted procedural lapses such as the delay in filing the appeal and non-compliance during the proceedings before the Assessing Officer. However, in the interest of justice, the Tribunal decided to set aside the NFAC's order and remand the case back to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 839479 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2019-2020
• Appeal Filed On: 30-09-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIJIT
• Assessee Lawyers: PARIN S SHAH
• Keywords: Set aside; Business income; Cost of acquisition; Reopening of assessment; Principle of natural justice; Initiation of penalty proceedings
• Section: 148

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, Ahmedabad BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT Ms SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No.1857/Ahd/2025 (Assessment Year: 2019-20) Mahendra Manilal Patel, Survey No.592, Plot No.581/2, TP 204, Nr. Artavrat 4, Makarbha, Ahmedabad-380015. [PAN : ALRPP5681 N] Vs. The Deputy Commissioner of Income Tax, Circle 3(1)(1), Ahmedabad. (Appellant) .. (Respondent) Appellant by : Shri Parin S Shah, AR Respondent by: Shri Abhijit, Sr. DR Date of Hearing 19.02.2026 Date of Pronouncement 23.02.2026 O R D E R PER SUCHITRA KAMBLE, JUDICIAL MEMBER:- This appeal has been filed by the Assessee against the order dated 08.09.2025 passed by the Commissioner of Income-Tax (Appeal)/National faceless Appeal Centre(NFAC), Delhi relevant to the Assessment Year 2019-20. 2. The assessee has raised the following grounds of appeal: 1. The order passed by lower authorities is invalid, bad in law and required to be quashed. 2. The reopening of assessment u/s 148 of the Act is required to be quashed. 3. Ld. NFAC erred in law and on facts in dismissing appeal ignoring condonation petition and thus violated principle of natural justice. 4. Appellant prays that appeal may be set aside for adjudication on Rs. 0 merits considering submission of the appellant. Printed from counselvise.com ITA No. 1857/Ahd/2025 Asst. Year : 2019-20 - 2– 5. Ld. NFAC erred in law and on facts in confirming disallowance of Rs. 90,00,000/- u/s 80GGC of the Act. 6. Ld. NFAC erred in law and on facts in confirming disallowance 6 of Rs. 1,00,00,000/- made under capital gain without granting cost of acquisition. 7. Ld. NFAC erred in law and on facts in confirming addition of Rs. 2,50,69,874/- of rental income ignoring fact that appellant is in business of renting out and impugned income has already disclosed under head business income. 8. Initiation of penalty proceedings u/s.270A of the Act is unjustified 9. Charging of interest u/s.234A 234B, 234C are unjustified. 3. On perusal of the record, we find that there was also a delay in filing the appeal before the Ld. CIT(A). Since the assessee did not furnish sufficient cause for condonation of the delay, the Ld. CIT(A) dismissed the appeal as not admitted. We further note that the assessee had not complied even during the proceedings before the Assessing Officer. Before us, the Ld. Counsel for the assessee prayed that, given an opportunity, due compliance will be made, all necessary details, clarifications, and explanations would be furnished to the Revenue authorities. Hence, in the interest of justice, we set aside the order of the Ld. CIT(A) and restore the matter back to the file of the Assessing Officer for de novo assessment. The assessee shall submit all the relevant bank statement/submission/document before the Assessing Officer and comply with the notices issued by the revenue authorities without seeking any unnecessary adjournments. 4. In the result, the appeal of the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 23.02.2026. Sd/- (DR. B.R.R. KUMAR) Sd/- (SUCHITRA KAMBLE) VICE-PRESIDENT JUDICIAL MEMBER (True Copy) Ahmedabad; Dated 23.02.2026 **mv Printed from counselvise.com ITA No. 1857/Ahd/2025 Asst. Year : 2019-20 - 3– आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "