Siddhi Parag Patel Vs ITO (ITAT Ahmedabad)
In the case of Siddhi Parag Patel vs ITO at the Income Tax Appellate Tribunal (ITAT) Ahmedabad, the assessee sought a stay on tax recovery of Rs. 44.51 lakhs. This arose from an addition of Rs. 1.06 crore made to her income on account of unexplained land investment, confirmed by the Commissioner of Income Tax (Appeals) [CIT(A)]. The assessee argued that she had a strong case for the deletion of the addition and had already paid 20% of the demand, fulfilling the Tribunal’s criteria for granting a stay under Section 254(2A) of the Income Tax Act.
The core issue was the tax treatment of the Rs. 1.06 crore addition, which was based on the registration date of a property transaction. The assessee claimed the investment was made in a prior year, and no payments were made during the year under assessment. However, the Assessing Officer (AO) relied solely on the registration date without allowing the assessee an opportunity for rebuttal or considering her documentary evidence, including sale deeds. The CIT(A) upheld the AO’s decision without verifying the facts.
After reviewing the arguments, ITAT found merit in the assessee’s case and noted procedural lapses in how the addition was made. A stay on the tax demand was granted for three months or until the disposal of the appeal, whichever is earlier. The Tribunal also directed the appeal to be heard on September 17, 2024, providing relief to the assessee in the interim.
