PRAVINBHAI BABUBHAI PRAJAPATI,GANDHINAGAR V. THE ITO, WARD-3, GANDHINAGAR

ITA 1731/AHD/2025

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The case involves Pravinbhai Babubhai Prajapati, the appellant, who contested the order of the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre, Delhi. The dispute arose from the assessment year 2017-18, where the appellant faced additions to his income under Section 69A of the Income Tax Act, concerning unexplained deposits in his bank accounts during the demonetization period. The Assessing Officer had made an addition of Rs. 49,05,402 as unexplained deposits, which was upheld by the CIT(A). The appellant argued that he was not given a reasonable opportunity of hearing, and the decision was made ex-parte. The Tribunal noted the appellant's medical condition, which prevented him from attending to the legal proceedings, and thus decided to remand the case for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 790711 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-12-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 12-09-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SURESH CHAND MEENA
• Assessee Lawyers: M K PATEL
• Keywords: Principle of natural justice
• Section: 144; 142(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. No. 1731/Ahd/2025 (Assessment Year: 2017-18) Pravinbhai Babubhai Prajapati, 12, Kalpana Nagar Society, Part-II, BH Atithi Hotel Dehgam, Gandhinagar-382305 Vs. Income Tax Officer, Ward-3, Gandhinagar [PAN No.ASHPP4948F] (Appellant) .. (Respondent) Appellant by : Shri M K Patel, Advocate Respondent by : Shri Suresh Chand Meena, Sr. D.R. Date of Hearing 01.12.2025 Date of Pronouncement 02.12.2025 O R D E R The appeal filed by the assessee is against the order passed by the Ld. Commissioner of Income Tax (Appeals), (in short “Ld. CIT(A)”), National Faceless Appeal Centre (in short “NFAC”), Delhi on 28.11.2024 for A.Y. 2017- 18. 2. The grounds of appeal raised by the assessee are as under: “1. That on facts, and in law, the learned NFAC has grievously erred in not granting reasonable opportunity of hearing to the appellant, and in deciding the appeal vide ex-parte order. 2. That on facts, and in law, the learned NFAC has grievously erred in confirming the addition of Rs. 49,05,402/- made u/s 69A of the Act towards alleged unexplained deposits / credits in appellant’s bank account. 3. That on facts, and in law, the learned NFAC has grievously erred in confirming the addition and the levy of tax u/s 115BBE of the Act. 4. The appellant craves leave to add, alter, amend any ground of appeal.” 3. As per the information available on the ITBA module in the case of assessee, the Department found that the assessee made cash deposits of Rs. Printed from counselvise.com ITA No. 1731/Ahd/2025 Pravinbhai Babubhai Prajapati vs. ITO Asst.Year–2017-18 - 2 - 12,05,000/- during the demonetization period in State Bank of India and The Ahmedabad Mercantile Cooperative Bank. The case was taken for scrutiny and accordingly, notice under Section 142(1) of the Act was issued on 08.03.2018 to the assessee. The assessee did not file return of income for the relevant assessment year. The statutory notices were not replied and no details were filed before the Assessing Officer, therefore, the assessment was finalized under Section 144 of the Income Tax Act. The Assessing Officer made addition of Rs. 49,05,402/- under Section 69A as unexplained deposit / investment. 4. Being aggrieved by the assessment order the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. There is a delay of 224 days in filing the present appeal as the assessee was undergoing surgery during the period 29.06.2024 and 09.06.20256 as mentioned in the Affidavit dated 30.08.2025. The reason for delay appears to be genuine, hence, delay is condoned. 6. The Ld. AR submitted that due to assessee’s medical condition the assessee could not file the appeals before the Assessing Officer as well as before the CIT(A) and was not able to follow up his case before both the parties despite the appointment of professionals. The Ld. AR further submitted that one more opportunity may be given to place his evidences before the AO and the opportunity be given to the assessee as the credit entry reflected in bank statement also includes entry of loan amount which was taken by the assessee during the relevant period. Printed from counselvise.com ITA No. 1731/Ahd/2025 Pravinbhai Babubhai Prajapati vs. ITO Asst.Year–2017-18 - 3 - 7. The Ld. DR submitted that the ample opportunity was given by the Assessing Officer as well as CIT(A) and therefore, relied upon the order of the CIT(A) as well as assessment order. 8. Heard both the parties and perused all the relevant material available on record. It is pertinent to note that the assessee was undergoing surgeries and having held issues since the Covid period and therefore, assessee cannot be personally held liable for not attending the proceedings and not following the proceedings before both the authorities and therefore, in the interest of justice, it will be appropriate to remand back this matter to the file of the Assessing Officer for proper adjudication of the issues on merit after taking into account the evidences filed by the assessee. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice. 9. In the result, the appeal of the assessee is partly allowed for statistical purposes. This Order pronounced in Open Court on 02/12/2025 Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER Ahmedabad; Dated 02/12/2025 TANMAY, Sr. PS TRUE COPY 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, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "