SHAILENDRA VIJAYKUMAR PATEL,NAVSARI V. ITO, WARD 5, NAVSARI

ITA 135/SRT/2025

AI Insights

The case involves Shailendra Vijaykumar Patel, the appellant, contesting an order from the Commissioner of Income Tax (Appeals) which dismissed his appeal as being barred by limitation. The original dispute arose from an assessment order that added Rs. 6,72,00,000 as short-term capital gain, which the appellant contested, claiming he was only a power of attorney holder and had received only Rs. 48,00,000. The Tribunal found that the appellant was not given a fair opportunity to explain the delay in filing the appeal, which was due to his previous tax consultant's failure to communicate important notices and the assessment order.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 837723 (ITAT-SURAT)
• Duration Of Justice: 1 year(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Appeal Filed On: 05-02-2025
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MUKESH JAIN
• Assessee Lawyers: SAPNESH SHETH
• Keywords: Set aside

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.135/SRT/2025 िनधा \u000fरण वष\u000f /Assessment Year : 2018-19 Shailendra Vijaykumar Patel 1-228 Shivam Magan Desai Chal Opp. S.T. Depo Navsari 396 445 (Gujarat) बनाम/ v/s. The Income Tax Officer Ward 5 Navsari 396 445 \u0013थायी लेखा सं./PAN: AKNPP 7586 K (अपीलाथ(/ Appellant) (!) यथ(/ Respondent) Assessee by : Shri Sapnesh Sheth, Advocate Revenue by : Shri Mukesh Jain, CIT(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 10/01/2025 for the Assessment Year (AY) 2018-19. 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) has erred in dismissing the appeal of Printed from counselvise.com ITA No. 135/SRT/2025 Shailendra Vijaykumar Patel vs. ITO Asst. Year : 2018-19 2 the assessee by holding the appeal filed as invalid & not maintainable being filed out of time. 2. On the facts and circumstances of the case as well as law F on the subject, the learned Commissioner of Income Tax (Appeals) has erred in confirming the action of assessing officer in making addition of Rs. 6,72,00,000/- as short term capital gain without considering the fact that appellant is only the power of attorney holder and has received consideration of ₹ 48,00,000/-only. 3. On the facts and circumstances of the case as well as law on the subject, the learned assessing officer has erred in passing order u/s144 of the IT Act 1961 without providing reasonable opportunity of hearing to assessee. 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. At the outset, the Ld. Counsel for the assessee, has invited our attention to the order of the Ld. CIT(A) to submit that the Ld. CIT(A) has dismissed the appeal of the assessee being barred by limitation. The Ld. Counsel has submitted that there was a delay of 122 days in filing the appeal before the Ld. CIT(A). He has, further, brought our attention to appeal Form 35 to show that the assessee has duly mentioned the reasons for the delay in filing the appeal before the Ld. CIT(A) at Sl.No.15 of the Form 35, wherein, it was explained that the tax consultant of the assessee neither complied with the notices issued by the AO nor communicated the same to the assessee. Even he did not communicate the passing of the impugned assessment order. That the assessee came to know about the passing of the assessment order only when he received the tax-recovery notice in physical mode from the Jurisdictional AO. The assessee, thereafter, appointed a new tax consultant and filed the appeal before the Ld. CIT(A). The Ld. Counsel has further submitted that the Ld. CIT(A) did not give any opportunity to the assessee Printed from counselvise.com ITA No. 135/SRT/2025 Shailendra Vijaykumar Patel vs. ITO Asst. Year : 2018-19 3 even to explain the aforesaid reasons for delay and summarily dismissed the appeal of the assessee holding the same as barred by limitation. The Ld. Counsel has submitted that assessee has a fair case on merits and that he may be given an opportunity to present his case before the Ld. CIT(A). 4. 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 before the Ld. CIT(A), however, subject to payment of reasonable costs which we assess at Rs.10,000/-. Accordingly, it is directed that the assessee will deposit a cost of Rs.10,000/- in Prime Minister’s National Relief Fund and will furnish the evidence of such deposit before the Ld. CIT(A). Subject to fulfilment of aforesaid condition, the impugned order of the Ld. CIT(A) is set aside, the delay in filing the appeal before the Ld. CIT(A) is hereby condoned and the matter is restored to the file of the Ld. CIT(A) for decision afresh in accordance with law. 5. 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 Printed from counselvise.com ITA No. 135/SRT/2025 Shailendra Vijaykumar Patel vs. ITO Asst. Year : 2018-19 4 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 1. Date of dictation (dictation pad is attached with the file)) : 9.2.2026 2. Date on which the typed draft is placed before the Dictating Member. : 9.2.2026 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 19.2.26 7. Date on which the file goes to the Bench Clerk. : 19.2.26 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order : Printed from counselvise.com "