Trupti Ashishkumar Desai Vs ITO (ITAT Surat)
In the case of Trupti Ashishkumar Desai Vs ITO, the Income Tax Appellate Tribunal (ITAT) in Surat reviewed an appeal concerning the Assessment Year (AY) 2011-12. The appellant challenged the decision of the Commissioner of Income Tax (Appeals), which upheld an addition of ₹7,00,130 under Section 69A, based on unexplained investments. The appellant argued that the order was passed ex parte, without adequate opportunity for defense, as the CIT(A) claimed multiple notices were issued, including during the COVID-19 period. The appellant’s representative acknowledged missed compliance opportunities but expressed confidence in the merits of the case, stating the funds were sourced from legitimate term deposits. Conversely, the Department’s representative insisted that ample opportunities were provided and that the appellant’s non-compliance justified the decisions made by the lower authorities. The ITAT considered the principles of natural justice and decided to restore the case to the Assessing Officer for a fresh examination, allowing the appellant another chance to present their arguments and evidence. The tribunal emphasized the need for the Assessing Officer to ensure fair hearing while also urging the appellant to comply timely in future proceedings. Ultimately, the appeal was allowed for statistical purposes, with the expectation of renewed consideration by the Assessing Officer.
