Ishvarbhai Lallubhai Patel Vs Assessment Unit (ITAT Surat)
The Income Tax Appellate Tribunal (ITAT) Surat has ruled in favor of a 77-year-old farmer, Ishvarbhai Lallubhai Patel, condoning a 162-day delay in filing an appeal and ordering a fresh assessment. The case pertained to the Assessment Year 2015-16, where the Assessing Officer (AO) had made an addition of ₹74,17,350 to the assessee’s income under Section 50C of the Income-tax Act, 1961, after determining the fair market value of a jointly sold property. The appeal was initially rejected by the Commissioner of Income Tax (Appeals) [CIT(A)] on procedural grounds, as it was filed beyond the permissible period without an adequate explanation.
The tribunal acknowledged that Patel, an uneducated farmer engaged in vegetable farming, had relied on his tax consultant, who failed to inform him about the assessment proceedings and subsequent demand notices. Upon realizing the issue, Patel sought the assistance of a new consultant, who advised him to file a delayed appeal. The CIT(A), however, refused to condone the delay, citing insufficient justification and dismissed the appeal without examining the merits of the case. Patel, through his legal representative, argued before ITAT that the delay was due to circumstances beyond his control and requested a fresh assessment.
