Ramnikbhai Jasrajbhai Patel Vs ITO (ITAT Rajkot)
Second Chance Granted with Costs: Rajkot ITAT Sets Aside Ex-parte 144/147 Assessment on Cash Deposits of Agriculturist
Rajkot ITAT, Rajkot Bench, in Ramnikbhai Jasrajbhai Patel Vs ITO (ITA No.244/RJT/2023; AY 2013-14; order dated 18-12-2025), set aside the ex-parte assessment framed u/s 144 r.w.s. 147 and remanded the matter to the AO for fresh adjudication on merits, while imposing costs of ₹5,000 on the assessee for non-cooperation.
The assessee, an agriculturist with no history of filing returns, faced an addition of ₹12.73 lakh on account of cash deposits in Saurashtra Gramin Bank, which were treated as unexplained u/s 69/68 due to complete non-compliance during reassessment proceedings. The CIT(A), NFAC had dismissed the appeal solely on the ground that the assessee failed to place any explanation or evidence despite multiple opportunities.
Before the ITAT, the assessee sought one more opportunity to explain that the cash deposits were linked to agricultural sale proceeds and withdrawals redeposited in the same bank account, contending that debit entries were ignored by the AO. While the Tribunal noted the negligent and non-cooperative conduct of the assessee before both the AO and CIT(A), it held that substantive justice warrants one effective opportunity.
Balancing equity with discipline, the ITAT set aside the orders of the lower authorities, remanded the case to the AO for de novo consideration after granting due opportunity, and directed the assessee to deposit ₹5,000 to the Prime Minister’s Relief Fund within 10 days as a condition. The appeal was thus allowed for statistical purposes, reinforcing that while laxity has a cost, justice should not be shut out entirely
FULL TEXT OF THE ORDER OF ITAT RAJKOT
