Chandubha Manubha Vadher Vs ITO (ITAT Rajkot)
Procedural Lapse Not Fatal -Natural Justice Prevails over Technicality – CIT(A) Erred in Dismissing Manual Appeal; Rajkot ITAT remands case despite Delay & E-Filing Default
Assessee, an individual filed his return of income for AY 2014-15 declaring ₹3,95,065/-. The case was selected for scrutiny & assessment u/s 143(3) was completed making disputed additions over ₹7.07 crore – Cash deposits in various bank accounts – ₹90,68,000/-, Addition u/s 56(2)(vii)(b)(ii) (difference in property purchase value) – ₹11,23,210/- & Investment in immovable property (ignoring joint ownership with 27 co-buyers) – ₹6,04,72,790/- Assessee challenged the assessment before CIT(A) which was dismissed on technical grounds, as it was filed manually instead of mandatory e-filing (as per CBDT Notification No. 11/2016 dt. 01.03.2016). CIT(A) treated the appeal as invalid ab initio without deciding on merits.
Appeal to ITAT was filed belatedly by 524 days. Submitting affidavit with medical records, Assessee explained delay due to serious medical treatment (heart & eye ailments) & lack of knowledge about online appellate procedures. Revenue did not oppose condonation request. ITAT found the delay bonafide & not deliberate, & condoned it in the interest of justice.
Before Tribunal, Assessee argued that entire cash deposits cannot be treated as income & only profit element should be taxed. AO ignored cash withdrawals during the year. Properties purchased was jointly with 27 co-buyers, but AO wrongly taxed full investment in assessee’s hands, disregarding Samjuti Karar (agreement). AO applied Section 56 provisions mechanically without factual verification. CIT(A) denied opportunity on mere technicality of e-filing, violating principles of natural justice.
