What did the Tribunal hold?

The Tribunal condoned the delay, set aside the CIT(A)'s order, and restored the matter to the Assessing Officer (AO). The assessee was directed to pay Rs. 10,000/- to the Prime Minister's National Relief Fund as a cost for the delay.

The assessee filed an appeal with a significant delay, citing severe depression. The assessee's counsel argued that both lower authorities' orders were ex parte due to the negligence of the chartered accountant who failed to inform the assessee and represent the case.

What were the issues?

Whether the delay in filing the appeal should be condoned and if the assessee should be granted an opportunity to present their case before the AO.

Ajit Chandulal Shah vs ITO | ITAT Ahmedabad 2026

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: SHRI SANJAY GARG & SMT. ANNAPURNA GUPTA

For Appellant: Shri Prashant Shah, A.R, Shri Alpesh Parmar, CIT. DR

For Respondent: Shri Alpesh Parmar, CIT. DR

Hearing: 15/04/2026Pronounced: 13/07/2026

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE: SHRI SANJAY GARG, JUDICIAL MEMBER AND SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER आयकर अपील सं./I.T.A. No. 1618/Ahd/2025 (िनधा�रण वष� / Assessment Year : 2017-18) बनाम Ajit Chandulal Shah The Income Tax Officer / C-507, Panchratna Flats, Ward 1(3)(1), Ahmedabad Vs. Mahavir Nagar, Sabarmati, Ahmedabad, Gujarat - 380005 �थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AOKPS1573E (Appellant) .. (Respondent) अपीलाथ� ओर से /Appellant by : Shri Prashant Shah, A.R. ��यथ� क� ओर से/Respondent by : Shri Alpesh Parmar, CIT. DR

Date of Hearing 15/04/2026 Date of Pronouncement 13/07/2026

(आदेश)/ORDER Per Sanjay Garg, Judicial Member:

The present appeal has been filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (hereinafter referred to as “NFAC”), Delhi (hereinafter referred to as “CIT(A)”), dated 10.10.2023 passed under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) and relates to Assessment Year (A.Y.) 2017-18.

ITA No.1618/Ahd/2025 [Ajit Chandulal Shah vs. ITO] A.Y. 2017-18 - 2 –

There is a delay of 603 days in filing the present appeal. A separate application for condonation of delay has been filed, wherein, it has been pleaded that the assessee was undergoing a severe depression, because of which, he cannot file appeal in time before this Tribunal.

Ld. Counsel for the assessee has further invited our attention to the impugned assessment order as well as the order of the Ld. CIT(A) and has submitted that the orders of both the lower authorities are ex parte of the assessee. The Ld. Counsel has submitted that the concerned Chartered Accountant, engaged by the assessee, did not inform the assessee about the ongoing proceedings and even he himself did not appear for both the lower authorities. He has further submitted that the assessee has a fair case on merits. He has submitted that the assessee is in the business of trading in ornaments under the name and style of “Micro Chains”. He has further submitted that the Assessing Officer (in short ‘the AO’) had added the entire business receipts. The Ld. Counsel has submitted that the assessee may be given an opportunity to present his case before the AO. The Ld. DR, on the other hand, has relied upon the findings of the lower authorities.

Considering the rival submissions, in our view, the interests of justice will be well served, if the assessee be given an opportunity to present his case before the Ld.AO. So far as the negligence on the part of the assessee in not properly representing

ITA No.1618/Ahd/2025 [Ajit Chandulal Shah vs. ITO] A.Y. 2017-18 - 3 –

his case before the lower authorities is concerned, the asessee can be burdened with reasonable costs of Rs.10,000/- to be deposited in the Prime Minister’s National Relief Fund. The assessee will deposit the aforesaid cost amount within 60 days from the receipt of copy of this order and will produce the proof of such deposit before the Ld.AO. Subject to the fulfilment of the aforesaid condition, the delay in filing the present appeal is hereby condoned, the impugned order of the CIT(A) is set-aside and the matter is restored to the file of the AO. The AO will pass the assessment order afresh after giving due opportunity to the assessee.

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

This Order pronounced on 13/07/2026 under Rule 34(4) of the ITAT Rules

Sd/- Sd/- (ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 13/07/2026 S. K. SINHA True Copy आदेश क� �ितिल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant ��यथ� / The Respondent. 2. संबंिधत आयकर आयु� / Concerned CIT 3. आयकर आयु�(अपील) / The CIT(A)- 4. �वभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 5. 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad

AJIT CHANDULAL SHAH,AHMEDABAD vs. THE ITO, WARD-1(3)(1), AHMEDABAD

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What were the facts?

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