Ajjahar Ghaniwala Vs ITO (ITAT Ahmedabad)
In the case of Ajjahar Ghaniwala vs ITO, the Income Tax Appellate Tribunal (ITAT) Ahmedabad examined an appeal challenging an ex-parte addition of Rs. 36,01,500 under Section 69A for the assessment year 2017-18. The assessee, Ajjahar Ghaniwala, contended that both the Assessing Officer (AO) and the Commissioner of Income Tax (Appeals) (CIT(A)) had passed orders without granting a fair hearing. The addition was made based on unexplained cash deposits, but the assessee had failed to respond to multiple notices, resulting in an ex-parte decision by the CIT(A).
The ITAT found that the lack of cooperation from the assessee led to the ex-parte decision but noted the assessee’s plea to explain the source of the cash deposits and submit the necessary invoices and bills. Considering the fairness of allowing the assessee another opportunity to present the required documents, the ITAT directed the AO to initiate a de-novo assessment. The order effectively rescinded the Rs. 36,01,500 addition, with a clear instruction for the AO to conduct the reassessment in accordance with the law. This case highlights the importance of providing a fair opportunity for taxpayers to explain discrepancies and clarifies the procedures for handling such additions.
