Ramanbhai Harmanbhai Patel Vs ITO (ITAT Ahmedabad)
Ex-parte Assessment Can’t Stand: ITAT Restores ₹12.05 Lakh Cash Deposit Case for Fresh Adjudication
ITAT Ahmedabad “SMC” Bench, in Ramanbhai Harmanbhai Patel vs ITO (ITA No.1555/Ahd/2025, AY 2012-13; order dated 24.12.2025), has set aside the ex-parte assessment and appellate orders and remanded the matter to the AO for fresh adjudication in the interest of natural justice.
The assessee had filed a nil return declaring agricultural income of ₹1.80 lakh. Based on information regarding cash deposits of ₹12.05 lakh in Central Bank of India, reassessment proceedings were initiated and assessment was completed u/s 144 r/w 147, making addition of the entire cash deposit as unexplained due to non-compliance by the assessee. CIT(A) also dismissed the appeal ex-parte.
Before ITAT, the assessee explained the 68-day delay and non-appearance on the ground of frequent travel to the UK, which prevented coordination with the tax consultant. ITAT found the explanation reasonable, condoned the delay, and noted that both AO and CIT(A) orders were passed without considering the assessee’s explanation or evidence.
Since the assessee produced details before the Tribunal which required factual verification, ITAT held that the matter deserved a fresh look. Accordingly, the entire issue relating to ₹12.05 lakh cash deposits was remanded to the AO with a direction to examine the evidence afresh after granting proper opportunity of hearing. The appeal was thus partly allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
