KHILAN NAVINCHANDRA PATEL,SURAT vs. DCIT CIRCLE 1(3), SURAT

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ITA 794/SRT/2025Status: DisposedITAT Surat06 July 2026AY 2015-165 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, in the interest of natural justice and considering the ex-parte nature of previous proceedings, decided to set aside the lower authorities' orders. A cost of Rs. 10,000 was imposed on the assessee, and the case was remanded to the AO for a fresh assessment.

What were the facts?

The assessee's appeal was dismissed by the CIT(A) due to a significant delay in filing. The assessee attributed the delay to their tax consultant's negligence and sought condonation, explaining the circumstances beyond their control.

What were the issues?

Whether the delay in filing the appeal should be condoned due to the circumstances explained by the assessee, and whether the assessee should be granted another opportunity for a fresh assessment on merits.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 249(3),Section 249(2)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

Before: Shri T.R. Sentil Kumar & Shri Ratnesh Nandan Sahay

IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT (PHYSICAL HEARING) Before: Shri T.R. Sentil Kumar, Judicial Member And Shri Ratnesh Nandan Sahay, Accountant Member

ITA No: 794/SRT/2025 Assessment Year: 2015-16

Khilan Navinchandra Patel The DCIT Nagar Sheri, Circle-1(3), Mahidharpura, Vs Surat Surat-395001, Gujarat PAN: AQVPP0093K (Appellant) (Respondent) Assessee Represented: Shri Sapnesh Sheth, Advocate Revenue Represented: Ms. Neerja Sharma, Sr. D.R. Date of hearing : 06-05-2026 Date of pronouncement : 06-07-2026 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:-

This appeal is filed by the Assessee as against the ex-parte appellate order dated 25.06.2024 passed by the Additional Commissioner of Income Tax/JCIT (Appeals)-10, Mumbai (in short referred to as “Ld. Addl./JCIT(A)”), arising out of the intimation order passed under section 143(1) of the Income Tax Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2015-16.

I.T.A No. 794//SRT/2025 A.Y. 2015-16 Page No 2 Khilan Navinchandra Patel vs. DCIT

2.

Brief facts of the case are, the Ld. Addl./JCIT(A) dismissed the appeal as there is inordinate delay of 2852 days in filing the appeal before him. Further, there is a delay of 331 days in filing appeal before this Tribunal. The assessee filed a notarized affidavit that in Form No.35, he has opted not to send email notices. The assessee also explained the delay in filing appeal before Ld. Addl./JCIT(A).

"1. I have fled return of income u/s 139(1) of the Income Tax Act, 1961 for A.Y. 2015-16 on 12.12.2015 by declaring total income of Rs. 30,68,330/-. 2. After filing return of Income, I have received summary assessment order u/s 143(1) on 17/07/2016 having demand of Rs. 8,80,545/- 3. On receiving of above said summary assessment order u/s 143(1) of the Income Tax Act, 1961, I have handed over the order to my income tax consultant for further procedure. 4. On verification of the said order, my Tax consultant informed me that relief u/s 90/90A was not allowed in said order u/s 143(1). 5. To rectify this mistake my Tax consultant informed me that he will give reply for the same after numerous follow up with my tax consultant, he had responded against outstanding demand as on 12.12.2018. 6. After few time, on follow up with my Income Tax consultant about my demand status, he has replied me that the demand is still same and therefore, we will file the appeal against said summary assessment order. For filing appeal, I have submitted necessary documents to my Income Tax Consultant. 7. After waiting for a long time when no further communication was received from Appellant Authority, recently I have again tried to communicate with my tax consultant to know the status of my appeal, but not received any response. Therefore, I have approached another Income Tax consultant to inquiry about the appeal status. And I am surprise when I come to know that my income tax consultant has not fled any appeal against the said summary assessment order u/s 143(1). Once again, tried to communicate with my old tax consultant, but again he have not given any reply.

I.T.A No. 794//SRT/2025 A.Y. 2015-16 Page No 3 Khilan Navinchandra Patel vs. DCIT

8.

My new Income Tax Consultant has informed me that appeal is required to be filed within 30 days of order received but due I could not file the appeal within the 30 days. The fact why I was not able to file Appeal within due time limit is as mentioned above. The circumstances are beyond my control, for delay in fling the appeal. Therefore, I humbly request your honor to Condon the delay in fling the appeal due to the above reasonable cause and oblige." 2.1. However, Ld. Addl./JCIT(A) refused to condone the delay and dismissed the appeal as in limine.

3.

Aggrieved against the appellate order, assessee is in appeal before us raising following grounds of appeal:-

1.

On the facts and circumstances of the case as well as on the law on subject, the learned Commissioner of Income Tax (Appeals), NFAC has erred in dismissing the appeal filed by the assessee on the ground that the appeal cannot be admitted in view of the specific provisions of section 249(3) of the Act, and in holding that the appeal is barred by limitation u/s 249(2) of the I.T. act. 2. On the facts and circumstances of the case as well as law on the subject, the Id. Commissioner of Income Tax (Appeal) has erred in confirming the action of the assessing officer in not allowing relief u/s 90/91/90A of Rs. 7,16,976/-. 3. It is therefore prayed that above appeal of assessee may kindly be admitted and addition made by assessing officer and confirmed by Commissioner of Income-tax (Appeals), NFAC may please be deleted. 4. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal. 4. Ld. Counsel appearing for the assessee submitted that, if one more opportunity is given to the assessee, he will file all necessary documents, materials, evidences and records before the Ld. JAO to pass order on merits of the case and also requested to condone the delay in filing the appeal.

I.T.A No. 794//SRT/2025 A.Y. 2015-16 Page No 4 Khilan Navinchandra Patel vs. DCIT

5.

Per contra, Ld. CIT DR appearing for the Revenue, supported the order passed by the Lower Authorities and strongly opposed the contention of the assessee and requested to impose heavy cost on the assessee, in the event of setting aside the matter back to the file of AO.

6.

We have heard rival submissions and perused the materials available on record. It is undisputed fact that it is an ex-parte assessment before the AO as well as before the Appellate Authority, wherein the assessee sought for adjournment. Now, the assessee undertakes to file all necessary details, materials and records before the Ld. JAO. Therefore, in the interest of Principle of Natural Justice, we deem it fit to impose a cost of Rs.10,000/- payable by the assessee to the Income Tax Department within two weeks of receipt of the copy of this order and production on receipt for Rs.10,000/- the Lower Authority orders are hereby set aside and direct the Ld. Jurisdictional Assessing Officer to give one more opportunity of hearing to the assessee. Needless to say, the assessee should make use of this final opportunity and produce all relevant materials, evidences and documents for passing assessment order in accordance with provisions of law. 7. In the result, the appeal filed by the Assessee is treated as allowed for statistical purposes.

Order is pronounced under provision of Rule 34 of ITAT Rules, 1963 on 06-07-2026.

Sd/- Sd/- (RATNESH NANDAN SAHAY) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 06/07/2026

I.T.A No. 794//SRT/2025 A.Y. 2015-16 Page No 5 Khilan Navinchandra Patel vs. DCIT

Mittali आदेश क� �ितिलिप अ�ेिषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से,

उप/सहायक पंजीकार आयकर अपीलीय अिधकरण, सूरत

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