Case Law Details
Sohil Patel Vs ITO (ITAT Ahmedabad)
In the case of Sohil Patel Vs. ITO before the ITAT Ahmedabad, the assessee filed an appeal against the order dated February 8, 2024, passed by the Ld. Commissioner of Income Tax (Appeals) (NFAC) for the assessment year 2010-11. The core issue involved the addition of Rs. 51,76,670 made by the tax authorities, citing unexplained investment in an immovable property. The assessee challenged the addition, arguing that there was non-compliance with notices due to genuine reasons. The appellant, who resided in a rural area, was illiterate and not familiar with computers or emails, leading to the failure in responding to the notices issued by the authorities.
The appeal stemmed from a discrepancy in the reported value of the property, with the assessee’s share being Rs. 31,25,000, while the stamp duty valuation was Rs. 51,76,670. The Ld. CIT(A) had summarily dismissed the assessee’s appeal due to non-compliance, which led the ITAT Ahmedabad to reconsider the case. The appellant’s counsel requested a chance to comply with the notices and presented the willingness to pay a nominal cost towards the “Prime Minister Relief Fund.” The Ld. DR, acknowledging the issues raised by the appellant, agreed that the matter should be remanded for a fresh hearing.
The ITAT, in the interest of justice, decided to remand the case back to the Ld. CIT(A) for re-evaluation, giving the assessee an opportunity to be heard and to provide necessary compliance. The assessee was directed to adhere to the notices issued by the tax authorities moving forward. Consequently, the appeal was allowed for statistical purposes, emphasizing the need for a fair hearing and further examination of the matter.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, vide order dated 08.02.2024 passed for the Assessment Year 2010-11.
2. The Assessee has taken the following grounds of appeal:-
1.1 The order passed by U/s. 250 passed on 08.02.2024 by NFAC, Delhi (for short ‘NFAC’)upholding the addition to the extent of Rs. 51,76,670/- towards the purchase of immovable property as unexplained investment is wholly illegal, unlawful and against the principles of natural justice.
1.2 The Id. NFAC has grievously erred in law and or on facts in not appreciating that there could not be compliance to the notices claimed to be issued by both the lower authorities for reasonable cause in view of the appellant being illiterate, staying in a village and non-savvy in respect of computer/emails etc. Thus, there was a sufficient cause for failure to comply with the notices claimed to be issued by NFAC.
3.1 The Id. NFAC has grievously erred in law and or on facts in upholding the addition to the extent of Rs.51,76,670/- towards the purchase of immovable property as unexplained investment.
3. The share of the assessee in the property purchased was Rs.31,25,000/- whereas value of the property as per the stamp duty authority was Rs.51,76,670/-. The Ld. CIT(A) summarily dismissed the appeal of the assessee owing to non-compliance of the assessee to the notices issued. The Ld. Counsel for the assessee prayed before us given an opportunity, due compliance will be made before the Ld. CIT(A) and agreed to pay a cost of 1000/- to the “Prime Minister Relief Fund” by the assessee. The Ld. DR fairly accepted that the matter should be remanded back to the Ld. CIT(A). Hence, in the interest of justice, the matter is remanded to the Ld. CIT(A) for adjudication of the issue afresh after granting an opportunity of being heard to the assessee. The assessee shall comply with the notices issued by the authorities from time to time.
4. In the result, the appeal of the assessee is allowed for statistical purposes.
This Order is dictated and pronounced in Open Court on 26.11.2024
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