Dharmendra Sumatichandra Sheth HUF Vs DCIT (ITAT Ahmedabad)
The case of Dharmendra Sumatichandra Sheth HUF vs. DCIT concerns an appeal filed by the assessee against an order issued by the Commissioner of Income Tax (Appeals) [CIT(A)] on July 30, 2024. The CIT(A) had dismissed the appeal on grounds of delay, citing the failure to condone a 28-day delay in filing the appeal. The assessee raised several issues, including the non-receipt of the hearing notice, the lack of an opportunity to be heard, and the brief response time given in faceless assessments. Additionally, the assessee questioned the additions made by the Assessing Officer (AO) under section 68 regarding unexplained credits in the form of unsecured loans and sundry creditors, which amounted to significant sums.
The appeal was initially filed due to the addition of Rs. 2,39,68,046 on sundry creditors and Rs. 95,00,000 on loan creditors under section 68 read with 115BBE of the Income Tax Act. The CIT(A) dismissed the appeal in limine without addressing the merits of these additions, relying solely on the procedural delay. In response, the assessee sought to have the delay condoned and the merits of the case reviewed. After reviewing the matter, the ITAT acknowledged the circumstances raised by the assessee and decided in favor of giving the appellant an opportunity to present their case. The Tribunal referred the case back to the AO for de novo assessment proceedings, allowing the matter to be reconsidered from the beginning. Thus, the appeal was allowed for statistical purposes, providing the assessee another chance to address the issues raised in the assessment.
