The Ahmedabad Bench of Income Tax Appellate Tribunal(ITAT) remanded the case back to the Assessing Officer (AO) for a fresh review after addressing the ex-parte dismissal and the addition of Rs. 1.55 Crore as unexplained investment.
Dinesh Ramanbhai Patel,appellant-assessee, challenged the appeal dated 11.03.2024 for Assessment Year(AY) 2017-18 passed by the Commissioner of Income Tax(Appeals)[CIT(A)].
A delay of 103 days occurred in filing the appeal. The assessee, a farmer with limited education and no knowledge of computers, explained in an affidavit that a Chartered Accountant was hired to handle the appeal.
How to Compute Income from Salary with Tax Planning, Click Here
However, due to the Accountant’s oversight, the appeal was delayed. The assessee requested that the delay be forgiven, as they had a strong case. After reviewing the situation, the delay was condoned in the interest of justice.
The tribunal noted that the main issue was the addition of Rs. 1,55,00,000 as unexplained investment in property under Section 69 of the Act. The counsel for the assessee explained that both the AO’s and CIT(A)’s orders were passed ex-parte, with the assessee not being given a chance to present their case.
The notices were sent to the tax consultant’s email, but instead of responding to them, the consultant raised grievances on the tax portal. This was an inadvertent mistake. The counsel argued that the CIT(A) dismissed the appeal without considering the merits and that the illiterate farmer would comply with all notices if given a chance to explain the investment.
How to Compute Income from Salary with Tax Planning, Click Here
The two member bench comprising Siddhartha Nautiyal(Judicial Member) and Annapurna Gupta(Accountant Member) directed the case to be sent back to the AO for a fresh review, allowing the assessee an opportunity to present their case. If the assessee does not comply with the notices, the AO may pass appropriate orders based on the available evidence.
In short,the appeal filed by the assessee was allowed for statistical purposes.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
