JITENDRAKUMAR P. SHAH,VALSAD vs. ITO, WARD 2, VALSAD

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ITA 1300/SRT/2025Status: DisposedITAT Surat09 June 2026AY 2023-244 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the order of the CIT(A) and directed it to grant another opportunity to the assessee for compliance, subject to payment of a cost of Rs. 5,000/-. The CIT(A) is to re-adjudicate the grounds on merits after considering the assessee's submissions and evidence.

What were the facts?

The assessee filed a return of income, and the assessment was completed with additions on account of unexplained cash credits, commission income, and unexplained expenditure. The CIT(A) dismissed the assessee's appeal without adjudicating on merits due to non-compliance.

What were the issues?

Whether the CIT(A) erred in dismissing the appeal without granting a reasonable opportunity and considering the merits of the case. Whether the additions made by the AO on account of cash credits and commission income were justified.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144B,Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, BENCH

Before: SHRI T.R. SENTHIL KUMAR & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri Krunal masrani, A.R, Shri Ajay Uke, Sr. DR
For Respondent: Shri Ajay Uke, Sr. DR
Hearing: 29/04/2026Pronounced: 09/06/2026

IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, BENCH [Conducted through Hybrid mode at Ahmedabad Bench] BEFORE SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER & SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER आयकर अपील सं./I.T.A. No. 1300/SRT/2025 (िनधा�रण वष� / Assessment Year : 2023-24) बनाम/ Jitendrakumar P. Shah Income Tax Officer Shop No. 2 & 3, Shiv Ward-2, Valsad Vs. Partment, Yogeshwar Nagar, Kosamba Road, Valsad, Gujarat - 396001 �थायी लेखा सं./जीआइआर सं./PAN/GIR No. : APPPS3828C (Appellant) .. (Respondent) अपीलाथ� ओर से /Appellant by : Shri Krunal masrani, A.R. ��यथ� क� ओर से/Respondent by : Shri Ajay Uke, Sr. DR Date of Hearing 29/04/2026 Date of Pronouncement 09/06/2026 O R D E R PER SHRI NARENDRA PRASAD SINHA, AM: This appeal is filed by the assessee against the order of the National Faceless Appeal Centre (NFAC), Delhi, (in short ‘the CIT(A)’), dated 25.11.2025 for the Assessment Year 2023-24 in the proceedings under Section 143(3) read with Section 144B of the Income Tax Act, 1961 (in short ‘the Act’).

2.

The brief facts of the case are that the assessee had filed his return of income for A.Y. 2023-24 on 16.09.2023 declaring total income of Rs.7,73,540/-. The case was selected for scrutiny under CASS. The assessment was completed u/s.143(3) read with Section 144B of the Act on 05.03.2025 at total income of

ITA No.1300/SRT/2025 [Jitendrakumar P. Shah vs. ITO] A.Y. 2023-24 - 2 – Rs.21,61,321/-, wherein various additions were made on account of unexplained cash credits, commission income and unexplained expenditure.

3.

Aggrieved with the order of the AO, the assessee had filed an appeal before the First Appellate Authority, which was decided by the Ld.CIT(A) vide the impugned order and the appeal of the assessee was dismissed.

4.

The assessee is now in second appeal before us. The following grounds have been taken in this appeal:

“1. The Learned CIT(A) has erred in law and in facts in dismissing the appeal on the basis of judicial pronouncement for non- persuasion of appeal and in spite of the adjournment taken on 19.09.2025. 2. The Learned CIT(A) has erred in law and in facts in dismissing the appeal without giving reasonable opportunity to the appellant and without considering the merits of the case as apparent from statement of facts and assessment order. 3. The Learned CIT(A) has erred in law and facts in confirming the action of the learned A.O. to add 2.18.500/-as unexplained cash credit u/s 68. 4. The Learned CIT(A) has erred in law and facts in confirming the action of the learned A.O. to add 68,685/- being undeclared commission income without appreciating the facts that the same income was already been offered for tax as commission income in the P & LA/c for the year. 5. The Learned CIT(A) has erred in law and facts in confirming the action of the learned A.O. to add 9,31,396/- being closing balance of unsecured loans as unexplained cash credit u/s 68 of the act. 6. The Learned CIT(A) has erred in law and facts in confirming the action of the learned A.O. to add 9,31.396/- being closing balance of unsecured loans as Unexplained cash credit u/s 68 of the act as against 349,413/- being the net unsecured loan accepted during the year. 7. The Appellant craves leave to add, amend, alter or delete any or all the above grounds of appeal at the time of regular hearing and all grounds are without prejudice to each other.”

ITA No.1300/SRT/2025 [Jitendrakumar P. Shah vs. ITO] A.Y. 2023-24 - 3 – 5. Shri Krunal Masrani, Ld. AR appearing for the assessee submitted at the outset that no compliance could be made by the assessee before the Ld. CIT(A) and, therefore, he had dismissed the appeal of the assessee without adjudicating the grounds taken on merits. He, therefore, requested that the assessee may be allowed another opportunity for compliance by setting aside the matter to the file of the Ld. CIT(A).

6.

Per contra, Shri Ajay Uke, Ld. Sr. DR supported the orders of the lower authorities. He, however, had no objection if the matter was set aside to the Ld. CIT(A) for allowing another opportunity of hearing to the assessee.

7.

We have considered the request of the assessee. The Ld. CIT(A) had allowed three opportunities to the assessee on 31.07.2025, 11.08.2025 and on 28.08.2025, but no compliance was made by the assessee on any of the dates. It is also not the case that the notices of the Ld. CIT(A) were not received by the assessee. In the absence of any explanation of non-compliance before the Ld. CIT(A), we deem it proper to impose a cost of Rs.5,000/- on the assessee, which should be paid to the Prime Minister Relief Fund within a period of 15 days from the date of the receipt of the order. Subject to the payment of cost, the Ld. CIT(A) is directed to allow another opportunity of being heard to the assessee in order to enable him to make compliance. The assessee is also directed to make compliance before the Ld. CIT(A) in the course of set aside proceeding and bring on record the submissions and evidences in support of the grounds taken, as deemed fit. Thereafter, the Ld. CIT(A) may re-adjudicate the

ITA No.1300/SRT/2025 [Jitendrakumar P. Shah vs. ITO] A.Y. 2023-24 - 4 – grounds taken by the assessee on merits, after taking into consideration the explanation of the assessee.

8.

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

This Order pronounced on 09/06/2026

Sd/- Sd/- (T.R. SENTHIL KUMAR) (NARENDRA PRASAD SINHA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad; Dated 09/06/2026 S. K. SINHA True Copy आदेश क� �ितिल�प अ�े�षत/Copy of the Order forwarded to : अपीलाथ� / The Appellant 1. ��यथ� / The Respondent. 2. संबंिधत आयकर आयु� / Concerned CIT 3. 4. आयकर आयु�(अपील) / The CIT(A)- 5. �वभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER,

उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / सूरत / ITAT, Ahmedabad / Surat

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