Bitcoin Transactions Treated as Short-Term Capital Gain in Ex Parte Assessment: ITAT Condones 333-Day Delay and Remands Matter [Read Order]
Ex parte assessment treating Bitcoin transactions as short-term capital gains was set aside for reconsideration as ITAT Delhi condoned 333-day delay.
The Income Tax AppellateTribunal (ITAT), Delhi Bench, set aside an ex parte assessment in which Bitcoin transactions were treated as short-term capital gains, and restored the matter after condoning delay of 333 days in filing appeal.
The assessee, Ajay Kumar, was assessed on the basis of information from the Insight Portal indicating Bitcoin transactions of ₹25.16 lakh. He had not filed a return of income and did not respond to notices issued during the proceedings.
The Assessing Officer completed the assessment ex parte under Section 144 read with Section 147 and treated the entire amount as short-term capital gains.
The assessee filed an appeal before the Commissioner of Income Tax (Appeals) with a delay of 250 days, However, no condonation application or explanation was filed, and the appeal was dismissed in limine.
Before the Tribunal, the assessee filed the appeal with a delay of 333 days and sought condonation, explaining the delay with supporting medical records and an affidavit .
The Revenue supported the orders of the lower authorities, pointing out that the assessee had remained non-compliant throughout.
The Tribunal, comprising Vikas Awasthy (Judicial Member), noted that the delay was supported by material on record and was not intentional, and condoned the delay. It restored the matter for fresh consideration. The assessee was permitted to file a condonation application before the CIT(A), with a direction to provide an opportunity before deciding the appeal and to respond to notices and furnish relevant details.
The appeal was allowed for statistical purposes.
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