What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal, subject to a cost deposit, and restored the matter to the Assessing Officer for a de-novo assessment. The assessee is to provide proof of deposit to the AO for fresh assessment.

The assessee is aggrieved by the CIT(A)'s confirmation of an addition of Rs. 17,48,407/- on account of unexplained cash deposits during demonetization. The assessee claims to have been residing in the USA and unable to represent his case properly due to his brother's illness and lack of awareness of the proceedings.

What were the issues?

Whether the assessee was prevented by sufficient cause from appearing before the lower authorities and whether the assessment order should be set aside for de-novo assessment.

Mineshkumar Kanubhai Patel, Anand vs ITO | ITAT Ahmedabad 2026

Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

Before: Shri Sanjay Garg

For Appellant: Shri S N Divatia, AR

Hearing: 23/07/2026Pronounced: 29/07/2026

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD ] ] Before Shri Sanjay Garg, Judicial Member आयकर अपील सं /ITA No.828/Ahd/2026 िनधा�रण वष� /Assessment Year : 2017-18 Mineshkumar Kanubhai Patel, ITO Ujwal Narayani Vila Society, बनाम/ Ward-1, v/s. Suryanagar, At Post Anand, Anand Khambholaj, Anand-388330 �थायी लेखा सं./PAN: AMLPP4311J (अपीलाथ�/ Appellant) (�� यथ�/ Respondent)

Assessee by : Shri S N Divatia, AR Revenue by : Shri Amit Pratap Singh, Sr. DR सुनवाई की तारीख/Date of Hearing : 23/07/2026 घोषणा की तारीख /Date of Pronouncement: 29/07/2026 आदेश/O R D E R The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (in short “NFAC”), Delhi [hereinafter referred to as ‘Ld. CIT(A)’] dated 29/05/2024 passed u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year (AY) 2017-18. 2. The assessee in this appeal is aggrieved by the action of the CIT(A) in confirming the addition of Rs. 17,48,407/- on account of unexplained cash deposits in the bank account of the assessee during the demonetization period.

ITA No.828/Ahd/2026 Mineshkumar Kanubhai Patel vs. ITO Asst.Year 2017-18 2 3. At the outset, the Ld. Counsel for the assessee has submitted that before the initiation of assessment proceedings, the assessee had shifted to USA and since then he has been residing there. That the assessee had handed over/requested his brother to look into his Income Tax matters. He has submitted that the brother of the assessee due to illness and memory related problems could not properly represent the case of the assessee before the Assessing Officer (in short “the AO”) resulting into the ex-parte assessment order and the impugned addition into the income of the assessee.

Being aggrieved by the said order of the AO, the assessee filed an appeal before the Ld. CIT(A). However, none of the notices issued by the CIT(A) were received on the email given in Form 35 and therefore, the case of the assessee remained unrepresented before the Ld. CIT(A). It has been further submitted that neither the assessee nor his brother have ever came to know about the passing of the impugned order of the CIT(A) and the same was never served upon the assessee. Even otherwise, the assessee was residing in USA and was not aware of the aforesaid events. Ultimately, when the bank account of the assessee was ceased by the Department for recovery of the amount, then the assessee came to know about the aforesaid confirmation of addition by the Ld. CIT(A). The assessee, immediately, approached a Chartered Accountant to file the present appeal. That due to the aforesaid reasons, the delay of 595 days has occurred in filing the present appeal. A separate application for condonation of delay has been filed explaining the aforesaid fact.

ITA No.828/Ahd/2026 Mineshkumar Kanubhai Patel vs. ITO Asst.Year 2017-18 3 4.1 Considering the above submissions made in the application the delay in filing the present appeal is hereby condoned subject to deposit of costs for a sum of Rs. 5,000/- in Prime Minister’s National Relief Fund. The matter is restored to the file of the AO for de-novo assessment on this issue. The assessee will furnish the proof of such deposit before the AO and thereafter, the AO will pass the assessment order afresh in accordance with law.

In the result, the appeal of the assessee is treated as allowed for statistical purposes.

Order pronounced in the Open Court on 29/07/2026.

Sd/- (Sanjay Garg) Judicial Member अहमदाबाद/Ahmedabad, िदनांक/Dated 29/07/2025 TRUE COPY Tanmay, Sr. P.S. आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��थ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु� अपील ( ) / The CIT(A)-(NFAC) 5. िवभागीय �ितिनिध आयकर अपीलीय अिधकरण अहमदाबाद /DR,ITAT, Ahmedabad. , , 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad 1. Date of dictation (dictation pad is attached with the file)) : 23.07 2026 2. Date on which the typed draft is placed before the : 24.07.2026 Dictating Member. 3. Date on which the approved draft comes to the Sr.P.S./P.S : 29.07.2026 4. Date on which the fair order is placed before the Dictating : Member for pronouncement. 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the : 30.07.2026 Sr.P.S./P.S. 7. Date on which the file goes to the Bench Clerk. : 30.07.2026 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar : for signature on the order. 10. Date of Despatch of the Order :

MINESHKUMAR KANUBHAI PATEL,ANAND vs. ITO WARD 1, ANAND, ANAND

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