Hemantkumar Rajendrakumar Vs DCIT (ITAT Ahmedabad)
The ITAT Ahmedabad heard an appeal by Hemantkumar Rajendrakumar against the order of the Commissioner of Income Tax (Appeals) [CIT(A)], National Faceless Appeal Centre (NFAC), concerning Assessment Year 2013-14. The appeal challenged the ₹76,07,650 addition made by the Assessing Officer (AO) under Section 69A of the Income-tax Act, 1961, as unexplained money linked to transactions in shares of M/s. Stampede Capital Ltd. The CIT(A) had dismissed the appeal due to the assessee’s non-appearance and non-submission of documents. The assessee argued that the appeal was dismissed without adequate opportunity for hearing, despite having submitted substantial documentation before the AO. Additionally, there was a delay of 21 days in filing the appeal, attributed to the illness and hospitalization of the assessee’s Chartered Accountant. The tribunal condoned the delay based on an affidavit and medical records.
Upon reviewing the case, the ITAT observed that the CIT(A) had summarily dismissed the appeal without considering the merits or addressing the grounds raised by the assessee. The tribunal found that all three hearing notices were issued within a single month, limiting the taxpayer’s response time. Given these circumstances, the ITAT ruled that the appeal should be remanded for fresh adjudication, ensuring a proper hearing and consideration of evidence. The order was set aside, and the case was sent back to the CIT(A) for de novo proceedings. The appeal was allowed for statistical purposes, reinforcing the importance of due process and fair hearings in tax litigation.
