Hanubhai Devabhai Rathod Vs ITO (ITAT Ahmedabad)
In Hanubhai Devabhai Rathod Vs. ITO, the Income Tax Appellate Tribunal (ITAT) Ahmedabad remanded an ex-parte order issued by the National Faceless Appeal Centre (NFAC) but imposed a ₹10,000 cost on the assessee for non-compliance. The case involved reassessments for AYs 2016-17 and 2017-18, where the Assessing Officer (AO) added unexplained bank credits and property investments to the assessee’s taxable income. The AO made these additions under Sections 69 and 69A of the Income Tax Act, citing the assessee’s failure to substantiate financial transactions. The NFAC upheld the additions after repeated non-appearance by the assessee despite multiple opportunities. The assessee later blamed his Chartered Accountant for the non-compliance but failed to provide supporting evidence.
Considering procedural fairness, the ITAT decided to allow the assessee another opportunity to present his case before the CIT(A). However, citing the failure to justify non-compliance at earlier stages, the tribunal imposed a ₹10,000 cost, payable to the Income Tax Department. The ITAT directed the CIT(A) to proceed only after verifying the payment of costs and instructed the assessee to comply with the proceedings without further adjournments. The appeal was allowed for statistical purposes, granting the assessee a final chance to explain his financial transactions.
