In a significant ruling, the Income Tax Appellate Tribunal (ITAT), Ahmedabad, has ordered fresh consideration in a case where non-compliance with tax regulations was attributed to technical difficulties with the income tax portal.
The case involved the assessee/appellant, an Ahmedabad resident named Krupal Vikrambhai Patel.
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The dispute, concerning assessment year 2011-12, arose from an order passed on June 26, 2024, by the Commissioner of Income Tax (Appeals) [CIT(A)] under Section 250 of the Income Tax Act 1961(ITA). The appellant contested several findings by the assessing authorities, including the invocation of jurisdiction under Section 148 of the tax statute and the classification of ₹45,526 as unexplained investments under Section 69A. Additionally, a significant deposit of ₹35,20,000 in the appellant’s bank accounts was deemed unexplained.
During the hearing on November 13, 2024, the appellant, represented by Shri M.K. Patel, contended that multiple procedural setbacks had impaired his ability to comply with tax authorities. Technical issues with the online tax portal reportedly prevented the appellant from filing revised returns or effectively addressing the authorities’ queries. Further complicating matters, the appellant’s legal counsel had relocated abroad, leaving him without adequate representation during important stages of the assessment.
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Acknowledging these issues, the appellant’s counsel requested a fresh opportunity to address the concerns raised by the assessing authorities. The Revenue’s representative, Shri Ketan Gajjar, conceded that fairness necessitated a reconsideration of the matter and supported the proposal for a reassessment.
In its decision, the bench of Vice President Dr. B.R.R. Kumar directed the Assessing Officer to conduct a de novo assessment. The tribunal ordered the authorities to reassess the case, granting the appellant sufficient opportunity to submit evidence and respond to the allegations comprehensively. In result, the appeal was allowed for statistical purposes.
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