ISHWARDAN NAGA DHARANI,JAMNAGAR vs. INCOME TAX OFFICE WARD 1,, DWARKA

आयकर अपीलीय अिधकरण, राजकोट �यायपीठ, राजकोट। In The Income Tax Appellate Tribunal, Rajkot Bench, Rajkot Before Dr. Arjun Lal Saini, Accountant Member And Shri Sonjoy Sarma, Judicial Member

आयकर अपील सं./ITA No. 804/RJT/2026 [ �नधा�रण वष�/Assessment Year: 2017-18 ] Ishwardan Naga Dharani Income Tax Office Ward 1, Harsiddhi Krupa Shyamnagar, Radar Income Tax Office, Shree Dwaravati Vs. Road Opp. Vagheshwari Temple, building, Opp. ACC Gate, Nageshwar Jamnagar-361004 Road, Dwarka-361335 Gujarat Gujarat �थायीलेखासं./जीआइआरसं./PAN/GIR No.: AOGPD7457J (अपीलाथ�/Appellant) (��यथ�/Respondent) Appellant by : Shri Vimal Desai, Ld. AR Respondent by : Shri Ganesh Iyer, Ld. Sr. DR Date of Hearing : 16/07/2026 Date of Pronouncement : 23/07/2026

:: ORDER :: Per, Shri Sonjoy Sarma, JM: 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 25.03.2026, which in turn arises out of an order passed by assessing officer u/s. 147 r.w.s. 144 of the Act, dated 18.05.2023. 02. Brief facts of the case are that the assessee is an individual who did not file a return of income for the assessment year under consideration. The Assessing Officer received information that the assessee had deposited Rs.2,15,64,500/- in a bank

ITA No.804/RJT/2026 Ishwardhan Naga Dharmi account maintained with State Bank of India during the relevant previous year. The information further revealed commission and brokerage income of Rs.3,214 and contract receipts of Rs.6,922/-. On the basis of the said information, the Assessing Officer initiated proceedings under section 147 of the Income-tax Act, 1961 by issuing a notice under section 148 of the Act. Since the assessee failed to satisfactorily explain the source of the deposits, the Assessing Officer completed the reassessment under section 147 and treated the entire amount of Rs.2,15,67,814/- as unexplained money under section 69A, taxable under section 115BBE of the Act. 03. Aggrieved by the reassessment order, the assessee preferred an appeal before the Ld. Commissioner of Income-tax (Appeals). However, the appeal was dismissed on the ground that there was an inordinate delay of 820 days in filing the appeal, which was not satisfactorily explained. Consequently, the Ld. CIT(A) dismissed the appeal without adjudicating the issues on merits. 04. Being aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before the Tribunal. 05. At the time of hearing, the Ld. AR submitted that the Ld. CIT(A) erred in dismissing the appeal purely on technical grounds without examining the merits of the case. It was contended that the assessee could not properly represent the matter before the lower authorities due to unavoidable circumstances. Therefore, in the interest of justice, the matter may be restored to the file of the Ld. AO for fresh adjudication. 06. On the other hand, the Ld. DR supported the orders of the authorities below. However, he fairly submitted that he has no serious objection if the matter is restored to the file of the Ld. AO subject to a direction that the assessee shall fully cooperate and comply with all notices issued during the appellate proceedings.

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ITA No.804/RJT/2026 Ishwardhan Naga Dharmi 07. We have heard the rival submissions and perused the material available on record. We find that the assessee failed to effectively participate in the assessment proceedings and also could not satisfactorily explain the inordinate delay of 820 days before the Ld. CIT(A). Consequently, the Ld. CIT(A) dismissed the appeal on technical grounds without adjudicating the issues on merits. Considering the facts and circumstances of the case, and in the interest of substantial justice and fair play, we deem it appropriate to restore the matter to the file of the AO for fresh adjudication. The Ld. AO shall examine the issues on merits after affording the assessee a reasonable opportunity of being heard. The assessee is directed to fully cooperate with the remand proceedings and to comply with all notices issued by the Ld. AO without seeking unnecessary adjournments.

Order pronounced in the open court on this 23rd day of July, 2026.

Sd/- Sd/- [ Dr. Arjun Lal Saini ] [ Shri Sonjoy Sarma ] लेखा सद�य/Accountant Member �याियक सद�य/Judicial Member राजकोट/Rajkot िदनांक/ Date: 23/07/2026 Copy of the order forwarded to : 1. The assessee 2. The Respondent 3. CIT 4. The CIT(A) 5. DR, ITAT, Rajkot 6. Guard File By order //True Copy// Sr. Private Secretary ITAT, Rajkot

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