Dharmeshkumar Ishwarbhai Patel Vs ITO (ITAT Ahmedabad)
In Dharmeshkumar Ishwarbhai Patel Vs ITO, the appeal was filed against an ex-parte order passed by the Commissioner of Income Tax (Appeals), NFAC, arising from a best judgment assessment under Section 144 for Assessment Year 2017–18. The assessee had not filed a return of income but had deposited ₹49.23 lakh in a bank account, including ₹16.13 lakh during the demonetization period. Due to non-response to notices issued under Section 142(1), the Assessing Officer completed the assessment ex-parte and made additions of ₹1.61 crore treating bank credits as unexplained income under Section 69A.
The assessee’s appeal before the CIT(A) was also dismissed ex-parte after five hearing opportunities due to continued non-appearance. Before the Tribunal, there was a delay of 185 days in filing the appeal, and the assessee failed to justify earlier non-compliance but requested another opportunity to present evidence, contending that the addition of entire bank credits was legally unsustainable.
The Revenue opposed the request, citing non-cooperation and suggesting imposition of cost if the matter was remanded. The Tribunal, considering the delay and non-cooperation but also in the interest of justice, set aside the orders of the lower authorities. It directed the assessee to pay a cost of ₹10,000 to the Income Tax Department within two weeks and produce proof before the Jurisdictional Assessing Officer. The Assessing Officer was directed to grant one final opportunity to the assessee to present relevant documents and explanations and pass a fresh order on merits.
