The Ahmedabad Bench of the Income Tax Appellate Tribunal ( ITAT ) remanded the matter for fresh adjudication citing that the assessee was not afforded proper hearing opportunities during the assessment proceedings and the Commissioner of Income-tax (Appeals) [CIT(A)] dismissed the appeal solely due to a 28-day delay in filing without addressing the merits of the case.
The assessee, Dharmendra Sumatichandra Sheth HUF, filed an appeal against the order of the CIT(A) for the assessment year 2020-21. The appeal was dismissed in limine by the CIT(A) due to a delay of 28 days in filing without examining the substantive grounds raised by the assessee.
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The assessee’s counsel submitted that the assessee was not served with a hearing notice dated 24.07.2024, depriving the assessee’s opportunity to present the case and the delay of 28 days in filing the appeal was due to sufficient cause and not intentional.
The assessee’s counsel submitted that the addition of Rs. 2,39,68,046 as unexplained credit in the form of sundry creditors and Rs. 95,00,000 as unexplained loan credit under Section 68 read with Section 115BBE of the Income Tax Act was unjustified.
The assessee’s counsel argued that the assessing officer provided less than seven days to respond to the show-cause notice violating the Standard Operating Procedure for faceless assessments and the CIT(A) dismissed the appeal for merely a 28-day delay.
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The assessee’s counsel further argued that they had not received the show-cause notice and that their appeal was dismissed without a fair opportunity to present their case. The assessee’s counsel requested a fresh opportunity for compliance and resolution of the matter.
The two-member bench comprising Dr. B.R.R. Kumar (Vice-President) and Ms. Suchitra Kamble (Judicial Member) observed that the CIT(A) had not condoned the delay in filing or examined the substantive issues on merits.
The tribunal directed the matter back to the assessing officer for fresh proceedings to ensure a fair reassessment and adequate opportunity for the assessee to present their case. The appeal was allowed for statistical purposes
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