Haribhai Shankarbhai Chaudhary Vs ITO (ITAT Ahmedabad)
Assessee did not file return for AY 2018-19. AO noticed cash deposits of ₹2.30 crore in Co-op Bank & reopened case u/s 148 on 26.05.2022. In response, Assessee filed return declaring income of ₹2,93,080/-. AO completed reassessment u/s 147 r.w.s. 144B on 20.09.2023, estimating turnover at ₹1.17 crore & applying net profit @7%, determining income at ₹8,21,178/-.
Before CIT(A), appeal was filed with delay of 101 days. CIT(A) dismissed appeal in limine, refusing to condone delay.
Before Tribunal, AR argued that delay was for reasonable cause & that reassessment itself was void as notice u/s 148 was beyond limitation & violated Notification No.18/2022 mandating faceless procedure. On merits, it was contended that applying 7% margin on retail milk trade was unrealistic.
Tribunal observed that technicalities should not defeat substantial justice. Considering business realities, Tribunal reduced profit rate from 7% to 4.5%, recomputing income at ₹5,27,900/- instead of ₹8,21,178/-.
Delay condoned. Income recomputed at ₹5.27 lakh by applying 4.5% profit rate. Appeal partly allowed.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This appeal has been filed by the Assessee against the order dated 17.01.2025 passed by the Ld. Commissioner of Income-Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (‘Ld. CIT(A)’ in short), under Section 250 of the Income-tax Act, 1961 (‘the Act’ in short), relating to the Assessment Year 2018-19.
