Dilip Sampatrao Yewale Vs ITO (ITAT Nagpur)
Income Tax Appellate Tribunal (ITAT) Nagpur Bench, in a recent ruling, has set aside an ex-parte assessment order against Dilip Sampatrao Yewale, a senior citizen and agriculturist. The case involved an addition of ₹7,38,500 to Yewale’s income for the assessment year 2017-18 under Section 68 of the Income Tax Act, 1961. The Tribunal’s decision, delivered on June 9, 2025, underscored significant procedural lapses, particularly concerning the proper service of notices, and reaffirmed the tax-exempt status of agricultural income.
Background of the Dispute
The genesis of the appeal lies in the impugned order dated February 29, 2024, issued by the Commissioner of Income Tax (Appeals)–1, Lucknow, which had affirmed the Assessing Officer’s (AO) addition. Yewale, the assessee, challenged this order on multiple grounds. Primarily, he argued that the lower authorities erred by making the addition without factoring in his agricultural income and cash withdrawals from the bank. He further contended that the entire ex-parte proceeding was fundamentally flawed due to a lack of proper notice, rendering the addition unjustified and the assessment arbitrary.
Dilip Sampatrao Yewale, identifying himself as an agriculturist who personally cultivates land and earns agricultural income, stated he had no other business or income sources. He also noted his lack of familiarity with electronic communication, possessing neither an email address nor a smartphone. On March 26, 2018, Yewale filed his income tax return for the assessment year in question, declaring agricultural income and interest from bank deposits. Notably, his Chartered Accountant (CA) had provided their official email ID in the return.
