RAKESH GHANSHYAMBHAI SHAH,VADODARA, GUJARAT V. THE INCOME TAX OFFICER, WARD 3(1)(2), VADODARA, VADODARA, GUJARAT

ITA 614/AHD/2025

AI Insights

The case involves an appeal by Rakesh Ghanshyambhai Shah against the order of the Commissioner of Income-Tax (Appeals), which was based on an ex parte assessment order by the Assessing Officer. The Assessing Officer had added an amount of Rs.48,56,000 to the assessee's income under section 69A of the Income Tax Act, 1961, due to a cash transaction for the purchase of a residential flat, which was not reflected in the income tax return. The Tribunal noted the delay in filing the appeal and the reasons provided by the assessee, including non-communication from his consultant. Despite the unsatisfactory reasons for the delay, the Tribunal found it just to grant another opportunity for the assessee to present his case, emphasizing the principles of substantial justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 652899 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIJIT
• Assessee Lawyers: TEJ SHAH
• Keywords: Set aside
• Section: 147; 142(1)

Judgement Text

"आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ ‘B’ अहमदाबाद। अहमदाबाद। अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD ] ] BEFORE S/SHRI SANJAY GARG, JUDICIAL MEMBER AND NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER ITA No.614/Ahd/2025 Assessment Year : 2013-14 Rakesh Ghanshyambhai Shah 6/Nanji Chembar Bahucharaji Road Karelibaug, Vadodara PAN : AJEPS 2849 A Vs ITO, Ward-3(1)(2) Vadodara. (Applicant) (Responent) Assessee by : Shri Tej Shah, AR Revenue by : Shri Abhijit, Sr.DR सुनवाई क तारीख/Date of Hearing : 05/06/2025 घोषणा क तारीख /Date of Pronouncement: 19/06/2025 आदेश आदेश आदेश आदेश/O R D E R Per Sanjay Garg, Judicial Member The above appeal has been preferred by the assessee against order passed by the Ld.Commissioner of Income-Tax(Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “ld.CIT(A)] dated 24.02.2024 under section 250 of the Income Tax Act, 1961 (\"the Act\" for short) arising out of the order of passed by the Assessing Officer (hereinafter referred to as “AO”) under section 147 r.w.s. 144 of the Act dated 10.9.2021 pertaining to Assessment Year 2013-14. 2. In the present appeal, the assessee is mainly aggrieved by the ex parte orders of the Revenue authorities, whereby, an addition of ITA No.614/Ahd/2025 2 Rs.48,56,000/- has been made to the income of the assessee under section 69A of the Act. 3. First of all, we note that the Registry has flagged the appeal of the assessee being time barred by 328 days in filing appeal before the Tribunal. To explain the delay, the assessee has filed an application for condonation of the delay in the form of affidavit. In the application, the assessee has inter alia pleaded that the email id registered with the e-portal was that of its consultant, who looked after the work of income tax matters and e-proceedings. That the assessee came to know about passing of the impugned assessment order upon inquiry, and immediately thereafter the assessee filed his first appeal before the ld.CIT(A). That the consultant of the assessee did not inform the assessee about the status of the appellate proceedings before the ld.CIT(A) and passing of the order by the ld.CIT(A) resulting into the delay in filing the aforesaid appeal. The learned counsel further contended that the assessee has a fair case on merits and may be granted an opportunity to present his case before the learned CIT(A), before whom he shall furnish all necessary details and explanations to substantiate his claim. 4. On the other hand, the ld. DR supported the orders of the lower authorities, emphasizing that the assessee had failed to appear both before the Assessing Officer and the learned CIT(A), and thus the ex parte orders were justified in the facts and circumstances of the case. 5. We note from the record that the AO noticed that assessee had made payment of Rs.48,56,000/- in cash to one M/s.J.P. Iscon P.Ltd. for purchase of residential flat. According to the AO, this amount of cash paid to the builders, did not match with the return of income ITA No.614/Ahd/2025 3 filed by the assessee at Rs.1,98,960/-. That the assessee had not responded to and/or furnished any details sought by the AO under section 142(1) of the Act to explain about the above transaction, therefore, based on the available material on record, the AO invoked the provisions of section 69A of the Act, and added the said amount to the income of the assessee. There was no compliance by the assessee even before the learned CIT(A), resulting in the ex parte dismissal of the appeal. 6. Although the reasons furnished by the assessee for not participating in the assessment and appellate proceedings are not entirely satisfactory, however, considering the overall facts and circumstances of the case and in the interest of substantial justice, we are inclined to grant one more opportunity to the assessee to present his case before the learned Assessing Officer. This, however, must be subject to the condition that the assessee deposits a cost of ₹10,000/- with the Prime Minister’s Relief Fund. 7. Accordingly, the delay in filing the present appeal is hereby condoned. the impugned order of the learned CIT(A) is set aside, and the matter is restored to the file of the Assessing Officer with a direction to adjudicate the matter afresh after giving due opportunity to the assessee to present his case and file the necessary details and explanations. The assessee shall deposit the cost of ₹10,000/- (Rupees Ten Thousand) in the Prime Minister’s Relief Fund and submit the proof of payment before the ld.AO. 8. The assessee is also directed to cooperate fully during the assessment proceedings and to respond to all notices and directions ITA No.614/Ahd/2025 4 issued by the AO, failing which the AO shall be at liberty to decide the case on merits, based on material available on record. 9. In the result, the appeal of the assessee is treated as allowed for statistical purpose. Order pronounced on 19th June, 2025. Sd/- Sd/- (Narendra Prasad Sinha) Accountant Member (Sanjay Garg) Judicial Member Ahmedabad,dated 19/06/2025 "