Akash Nareshbhai Panchal Vs ITO (ITAT Ahmedabad)
Income Tax Appellate Tribunal (ITAT) Ahmedabad has remanded the appeal of Akash Nareshbhai Panchal against the ex-parte order passed by the Commissioner of Income Tax (Appeals) [CIT(A)], National Faceless Appeal Centre (NFAC), for Assessment Year 2017-18. The appeal challenged the dismissal of Panchal’s case without a hearing, as well as the addition of ₹7.88 crore as unexplained money under Sections 68 and 69A of the Income Tax Act, 1961.
The appellant contended that he was unable to respond to the notices issued by CIT(A) because they were sent to an incorrect email address. Additionally, he argued that CIT(A) erroneously invoked Section 249(4)(b), which bars appeals if the taxpayer fails to pay advance tax, asserting that the provision did not apply to his case. The core issue pertained to cash deposits and credit entries in his bank account, which the Assessing Officer (AO) treated as unexplained money. Panchal claimed that documentary evidence explaining the sources of these transactions was available but was not considered due to the ex-parte proceedings.
During the ITAT hearing, both the appellant and the revenue department agreed that the CIT(A) had passed an ex-parte order without assessing the case on its merits. Given this procedural deficiency, ITAT decided to remand the matter to CIT(A) for fresh adjudication after ensuring that valid notice is served to the assessee. The tribunal emphasized the principle of natural justice, stating that the taxpayer must be given an opportunity to present evidence before any adverse conclusions are drawn.
