Janak Sureshbhai Patel Vs ITO (ITAT Ahmedabad)
The Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, in the case of Janak Sureshbhai Patel vs. ITO, addressed the issue of a reassessment being completed against a taxpayer without considering supporting evidence, as the taxpayer failed to appear before the Assessing Officer (AO) due to severe family illness.
The case pertains to Assessment Year 2012-13. Initially, the assessment was completed, making additions including the disallowance of the long-term capital gains exemption claimed under Section 54F of the Income-tax Act, 1961. After the first round of appeals, the Tribunal had set aside the Section 54F claim to the AO for de novo consideration, requiring the assessee to produce supporting materials.
In the de novo proceedings, the AO again denied the Section 54F exemption on September 20, 2021, because the assessee did not submit any reply or evidence. The Commissioner of Income-tax (Appeals) [CIT(A)] summarily dismissed the subsequent appeal, rejecting the additional evidence submitted by the assessee solely on the grounds that the assessee had not adequately explained the reasons for submitting evidence late, citing Rule 46A of the IT Rules.
Before the ITAT, the assessee’s representative argued that the CIT(A) failed to consider the compelling human circumstances that prevented compliance before the AO. The assessee, identified as an elderly widow living with her son, had explained that during the period of compliance (August-September 2021), the family was severely distressed due to the serious illness of her 14-year-old grandson, who was diagnosed with malignant brain tumours and undergoing surgery and radiation.
