AJITKUMAR ISHWARBHAI PATEL,SURAT vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1(3), SURAT

ITA 347/SRT/2026Status: DisposedITAT Surat17 August 2026AY 2021-229 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found merit in the assessee's grievance that information was provided late and an adequate opportunity to rebut the evidence was not given. Therefore, the matter was restored to the Assessing Officer for fresh adjudication.

What were the facts?

The assessee challenged a penalty imposed under Section 271D for alleged violation of Section 269SS, based on a cash loan of Rs. 10,00,000. The penalty was initiated based on a paper slip seized during a search of a third-party group, and details were provided to the assessee only at the final stage of penalty proceedings.

What were the issues?

Whether the penalty under Section 271D was validly imposed when the evidence was provided late and natural justice principles were violated. Whether the assessee was given an adequate opportunity to rebut the seized material.

Which sections of the Income-tax Act were involved?

Section 271D,Section 269SS

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

Before: MS. SUCHITRA KAMBLE & SHRI B.M. BIYANI

For Appellant: Shri Esmayeel Saherwala, CA
For Respondent: Shri Ashish Kumar, Sr. DR
Hearing: 17.06.2026Pronounced: 17.08.2026

Per B.M. Biyani, A.M.:

Feeling aggrieved by the order of first appeal dated 13.01.2026 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“Ld. CIT(A)”], which in turn arises out of the penalty-order dated 22.09.2025 passed by learned Assessment Unit of Income-tax Department [“Ld. AO”] u/s 271D of Ajitkumar Ishwarbhai Patel

Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2021-22, the assessee has filed this appeal on following grounds:

“1) That on the facts and in the circumstances of the case and in law, the Ld. CIT(A) gravely

The order continues below.

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