Ratabhai Rambhai Sodhiya Vs ITO (ITAT Rajkot)
Summary: The Rajkot ITAT condoned the 192-day delay in filing the assessee’s appeal for AY 2017-18 and admitted the appeal for adjudication on merits. The Assessing Officer had completed the assessment ex parte under Section 144 pursuant to reassessment proceedings, treating cash payment of ₹1,76,000 towards purchase of a vehicle from M/s Kiran Motors Limited as unexplained investment under Section 69. The assessee challenged the validity of the notice issued under Section 148 and the assessment order and, without prejudice, contended that the assessed income was below the basic exemption limit and that the entire addition could not be subjected to the special rate under Section 115BBE. Alternatively, the assessee agreed to accept 10% of the disputed amount as taxable income, relying upon the Tribunal’s decision in ITA No. 506/RJT/2026 involving similar facts. Following that decision, the Tribunal directed the Assessing Officer to restrict the addition to ₹17,600, being 10% of ₹1,76,000, and further directed that the said amount be taxed under the normal provisions of the Income-tax Act and not under Section 115BBE. The appeal was accordingly partly allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT RAJKOT
Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2017-18, is directed against the order under section 250 of the Income-tax Act, 1961 [hereinafter referred to as ‘the Act’] passed by the National Faceless Appeal Centre [hereinafter referred to as ‘NFAC’], dated 18.08.2025, which in turn arises out of an order passed by assessing officer u/s. 147 r.w.s. 144 of the Act, dated 28.03.2022.
