Ghanshyambhai Nanalal Charandas Vs ITO (ITAT Ahmedabad)
Ahmedabad ITAT set aside an ex-parte order confirming ₹1.63 Cr tax additions against a real estate operator, ruling that the CIT(A) failed to consider the assessee’s written submissions and the AO’s Remand Report.
The Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, has set aside a previous ex-parte appellate order involving a real estate operator, Ghanshyambhai Nanalal Charandas, citing a violation of the Principle of Natural Justice. The tribunal’s decision directs the National Faceless Appeal Centre (NFAC) to conduct a fresh hearing, potentially overturning additions totaling over ₹1.63 crore.
The case pertains to Assessment Year 2015-16, where the assessee, who had initially declared a modest income, faced a completed assessment that substantially raised his total income to ₹1.70 crore. The additions included ₹88.60 lakh for unexplained cash deposits and ₹75.19 lakh for unexplained investment in land. The assessee’s counsel contended these additions exceeded the scope of the original limited scrutiny assessment without necessary approvals.
The Commissioner of Income Tax (Appeals), NFAC, had initially dismissed the assessee’s appeal ex-parte after eight opportunities for hearing were provided. This action confirmed all additions made by the Assessing Officer.
Before the ITAT, the assessee argued that the NFAC order was fundamentally flawed because critical written documentation had been overlooked. Specifically, a detailed Written Submission filed physically by the assessee and the subsequent Remand Report submitted by the AO to the predecessor appellate authority were never taken into consideration when the appeal migrated to the NFAC system. While admitting that a change in tax consultant led to missing the NFAC hearing dates, the assessee pleaded for the order to be set aside due to the unexamined documentation.
