Govindbhai Hirabhai Bharvad Vs ITO (ITAT Ahmedabad)
In a significant ruling, the Income Tax Appellate Tribunal (ITAT) Ahmedabad addressed an appeal filed by the legal heir of the deceased assessee, Govindbhai Hirabhai Bharvad. The case pertains to an ex parte appellate order issued on January 27, 2023, by the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre, Delhi (CIT(A)). The primary issue in this appeal is the CIT(A)’s refusal to condone a delay of 104 days in filing the appeal resulting from a reassessment order passed under section 147 of the Income Tax Act, 1961, for the assessment year 2009-10.
Background of the Case
Govindbhai Hirabhai Bharvad was an individual earning income under multiple heads, including house property and capital gains. For the assessment year 2015-16, he originally filed a Return of Income (ITR) declaring a total income of ₹6,07,960. However, his case was reopened based on information suggesting substantial amounts were credited to his bank account, including a cash inflow of ₹1,37,55,000.
In response to the notice issued under section 148 of the Income Tax Act on March 22, 2021, Bharvad submitted his ITR on March 10, 2022, along with the e-filing acknowledgment. Despite this, the Assessing Officer (AO) maintained that no return was filed in response to the notice and subsequently proceeded to make a Best Judgment Assessment under section 144(1) of the Act. The AO added ₹1,37,55,000 as unexplained money, initiating penalty proceedings on March 29, 2022.
