ITO Vs Piyushbhai Bhailalbhai Hirpara (ITAT Ahmedabad)
The case of ITO vs. Piyushbhai Bhailalbhai Hirpara, adjudicated by the Income Tax Appellate Tribunal (ITAT) Ahmedabad, pertains to an appeal by the Revenue and a cross-objection by the Assessee regarding the order passed by the Commissioner of Income-Tax (Appeals) [CIT(A)], National Faceless Appeal Centre (NFAC), Delhi, dated 5th February 2023, concerning the assessment year 2016-17 under section 250(6) of the Income Tax Act, 1961.
The Revenue’s appeal, ITA No. 553/Ahd/23, faced a challenge due to being filed beyond the statutory limitation period. The delay of 91 days was attributed to administrative reasons, which the Income Tax Officer supported with an affidavit. The Tribunal, considering the plausible and unintentional nature of the delay, condoned it, allowing the appeal to proceed on its merits.
The core issue raised by the Revenue in its appeal was the deletion by the CIT(A) of an addition made by the Assessing Officer under section 69A of the IT Act. This addition amounted to Rs. 2,44,60,366 and was related to unexplained credits found in the Assessee’s books of accounts.
During the proceedings, the Revenue contended that the CIT(A) had solely relied on the Assessee’s claims without adequately addressing the findings of the Assessing Officer (AO). The AO’s findings were based on information indicating suspicious transactions involving the Assessee. However, the CIT(A) seemingly disregarded these findings and accepted the Assessee’s explanations, concluding that the transactions were related to the Assessee’s legitimate business activities.
