SHAMALBHAI LALLUBHAI PRAJAPATI,GANDHINAGAR V. THE ITO, WARD-1, GANDHINAGAR

ITA 2031/AHD/2025

AI Insights

The case involves Shamalbhai Lallubhai Prajapati, the appellant, who contested the decision of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, regarding the non-granting of relief under sections 89 and 89A of the Income Tax Act, 1961, for retirement benefits received. The appellant argued that the NFAC erred in confirming the action of the Central Processing Centre (CPC) and dismissed the appeal on technical grounds without considering the merits. The tribunal found that the appellant was not given a fair opportunity to submit a revised return or to be heard, leading to the decision to remand the case back to the AO.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 828524 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Ahmedabad
• Assessment Year: misc
• Appeal Filed On: 29-10-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: M. K. PATEL
• Keywords: Revised return; Principle of natural justice

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT & MS. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No.2031/Ahd/2025 (Assessment Year: 2023-24) Shamalbhai Lallubhai Prajapati 22, Vidhyanagar Society Pethapur, S.O. Pethapur Gandhinagar – 382 610 [PAN: BGBPP 5265 N] Vs. The Income Tax Officer, Ward-1, Gandhinagar – 382 011 (Appellant) .. (Respondent) Appellant by : Shri M.K. Patel, Advocate Respondent by: -None- Date of Hearing 15.01.2026 Date of Pronouncement 16.01.2026 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal is filed by the Assessee against the appellate order dated 30.07.2025 passed by the Commissioner of Income Tax(A), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “the Ld. CIT(A)”] relating to the Assessment Year (AY) 2023-24. 2. The assessee has raised the following grounds of appeal: “(1) That on facts, and in law, the learned NFAC has grievously erred in confirming the action of CPC in not granting relief to appellant u/s 89/89A of the Act in respect of retirement benefit appellant. of Rs.9,47,028/- received by appellant. Printed from counselvise.com ITA No.2031/Ahd/2025 Shamalbhai Lallubhai Prajapti vs. ITO AY : 2023-24 2 (2) That on facts, and in law, the learned NFAC has grievously erred in not deciding the issue on merits, and in dismissing the appeal only on technical ground of not submitting a revised return. (3) (4) The appellant craves leave to add, alter, amend any ground of appeal.” 3. Delay condoned. 4. The assessee received intimation u/s.143(1) of the Income Tax Act, 1961 (for short “the Act”) of his son’s email-id as mentioned in the statement of facts submitted before the CIT(A). Further, the assessee has received arrears of retirement benefit from the services rendered in USA. At the time of hearing, the Ld. AR submitted that the CPC has non-granted relief to the assessee u/s.89/89A of the Act in respect of retirement benefit. The assessee has not been granted an opportunity to file revised return before 31/12/2023. The Department emailed the assessee regarding defective return, who has not allowed the assessee to submit the revise return. 5. Aggrieved by the same, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal without giving any opportunity to the assessee to submit his revised return as well as not granted any hearing to the assessee. Therefore, the Ld.AR submitted that the matter may be restored to the file of the AO and the assessee may be allowed to represent his case as relates to granting exemption of arrears of salary u/s.89A of the Act. 6. Heard Ld.Counsel for the assessee. In light of the submissions of the Ld.AR that the matter may be restored to the file of the AO for representing the assessee’s case for grant of exemption of arrears of salary u/s.89A of the Act and whether the Printed from counselvise.com ITA No.2031/Ahd/2025 Shamalbhai Lallubhai Prajapti vs. ITO AY : 2023-24 3 assessee is eligible for revise return to that extent. The matter is remanded back to the file of the AO for de novo adjudication. Needless to say that the assessee may be given an opportunity by following of natural justice. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. The order is pronounc The order is pronounc The order is pronounc The order is pronounced in the open Court on ed in the open Court on ed in the open Court on ed in the open Court on 16 16 16 16/01/2026 /01/2026 /01/2026 /01/2026 S S S Sd/ d/ d/ d/- - - - S S S Sd/ d/ d/ d/- - - - ( ( ( (SUCHITRA KAMBLE SUCHITRA KAMBLE SUCHITRA KAMBLE SUCHITRA KAMBLE) ) ) ) (DR. B.R.R. KUMAR) (DR. B.R.R. KUMAR) (DR. B.R.R. KUMAR) (DR. B.R.R. KUMAR) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE VICE VICE VICE- - - -PRESIDENT PRESIDENT PRESIDENT PRESIDENT Ahmedabad; Dated 16/01/2026 tc nair आदेश की \u0007ितिलिप अ ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u0007 / The Appellant 2. \b थ\u0007 / The Respondent. 3. संबंिधत आयकर आयु\u0015 / Concerned CIT 4. आयकर आयु\u0015(अपील) / The CIT(A)- (NFAC). Delhi 5. िवभागीय \bितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy // True Copy// सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation 15.01.2026 2. Date on which the typed draft is placed before the Dictating Member 15.01.2026 3. Other Member 17.11.2025 4. Date on which the approved draft comes to the Sr.P.S./P.S 5. Date on which the fair order is placed before the Dictating Member for pronouncement 6. Date on which the fair order comes back to the Sr.P.S./P.S 16.1.26 7. Date on which the file goes to the Bench Clerk 16.1.26 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 Dispatch of the Order…………………………………… Printed from counselvise.com "