Anantrai Vithalbhai Parmar Vs CIT (Appeals) (ITAT Ahmedabad)
The case of Anantrai Vithalbhai Parmar vs. CIT (Appeals), adjudicated by the ITAT Ahmedabad, concerns the addition of ₹44,98,940 as unexplained cash deposits under Section 69A of the Income Tax Act for the Assessment Year 2017-18. The appellant, an individual taxpayer, had deposited ₹12,04,000 in cash during the demonetization period but failed to file a timely income tax return. The Assessing Officer (AO) initiated proceedings, serving notices under Sections 142(1) and 144 of the Act, but the appellant neither filed the required details nor responded adequately. Consequently, the AO made an ex-parte addition under Section 69A. The appeal to the CIT(A) was also dismissed, with penalties initiated under Sections 271AAC, 272A(1)(d), and 271F.
During the ITAT hearing, the appellant argued that his lack of response stemmed from unawareness of e-proceedings and the complexity of tax compliance. The tribunal found merit in his plea of genuine inability to respond effectively. While the Revenue emphasized that sufficient opportunities had been provided, ITAT acknowledged the appellant’s challenges and remanded the case to the AO for reassessment. This decision underscored the importance of adhering to natural justice principles, granting the appellant a fresh opportunity to present his case with proper evidence. The ITAT directed the AO to ensure a fair hearing and consider all submissions before passing a new order.
