Case Law Details
Rameshbhai Nagjibhai Patel Vs ACIT (ITAT Ahmedabad)
In the case of Rameshbhai Nagjibhai Patel Vs. ACIT, ITAT Ahmedabad has recently condoned the delay and ordered re-adjudication due to the assessee’s status as an uneducated farmer.
Analysis: The case revolves around the cash deposits made by Rameshbhai Nagjibhai Patel in Baroda Gujarat Gramin Bank for the Assessment Year 2012-13. The assessee had not filed their income tax return for the same year, leading to the reopening of the case by the Assessing Officer. Subsequently, an addition of Rs. 29,74,617/- was made under Section 69A of the Income Tax Act. The appeal filed by the assessee was dismissed by the CIT(A), prompting further action.
The assessee’s representative argued that both the Assessing Officer and the CIT(A) passed ex-parte orders without granting the assessee an opportunity to be heard. Consequently, they requested the remand of the appeal to the Assessing Officer for proper adjudication, considering the evidences filed by the assessee.
After hearing both parties, the ITAT acknowledged a delay of 98 days, which the assessee attributed to their status as an uneducated farmer and lack of awareness regarding notices from the department. The delay was condoned, and the matter was remanded back to the CIT(A) for a thorough review of the contested issues, taking into account the submitted evidence. The ITAT emphasized that the principles of natural justice should be followed, and the assessee should be given a fair opportunity to present their case. However, if the assessee fails to appear without valid reasons, the CIT(A) is empowered to pass appropriate orders.
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