The Ahmedabad Bench of Income Tax Appellate Tribunal ( ITAT ) remanded the case of ₹51.76 Lakh unexplained investment to the Commissioner of Income Tax(Appeals)[CIT(A)] for fresh adjudication.
Sohil Patel, appellant-assessee, challenged the order dated 08.02.2024 for the Assessment Year 2010-11 passed by CIT(A). The assessee raised several grounds, including that the National Faceless Appeal Centre ( NFAC )’s order on 08.02.2024, which upheld the addition of ₹51,76,670 as unexplained investment in immovable property, was unlawful and violated natural justice.
The NFAC simplifies tax assessments by eliminating physical interaction, centralizing processing, and using technology to assign cases. It aims to improve efficiency, transparency, and ease of doing business through electronic communication.
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The assessee also argued that non-compliance with notices was due to their illiteracy, rural background, and lack of computer skills. The addition of ₹51,76,670 was further challenged as an unexplained investment.
The assessee’s share in the property was ₹31,25,000, while the stamp duty value was ₹51,76,670. The CIT(A) dismissed the appeal due to the assessee’s failure to comply with the notices.
The two member bench comprising Dr. BRR Kumar(Vice President) and Siddhartha Nautiyal (Judicial Member) was informed by the assessee’s counsel that, if given a chance, they would comply with the requirements before the CIT(A) and agreed to pay a ₹1,000 cost to the “Prime Minister Relief Fund.” The revenue counsel agreed that the case should be sent back to the CIT(A).
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In the interest of justice, the tribunal remanded the matter to the CIT(A) for a fresh hearing, allowing the assessee the opportunity to present their case, and instructed the assessee to comply with the notices issued by the authorities.
In short,the appeal filed by the assessee was allowed for statistical purposes.
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