YASHPALSINH GAJENDRASINH VAGHELA,GANDHINAGAR vs. ITO, WARD 1, GANDHINAGAR, GANDHINAGAR

ITA 559/AHD/2026Status: DisposedITAT Ahmedabad28 September 2026AY 2020-215 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal noted that the Learned CIT(A) had issued four notices of hearing between May and November 2025. While the assessee filed adjournment applications for notices dated 18/11/2025 and 25/11/2025, the CIT(A) did not grant further time and proceeded to pass the order on 09/12/2025, within four days of the last fixed hearing date. Considering this, the Tribunal decided to grant another opportunity to the assessee to present their case before the CIT(A). The appeal was restored to the file of the CIT(A) with directions to adjudicate the grounds afresh after providing a reasonable opportunity of being heard. The assessee was directed to file relevant documents and submissions without seeking unnecessary adjournments. The Tribunal also directed the CIT(A) to consider an assessment order for AY 2021-2022, where no addition was made for a similar alleged cash contribution of Rs. 12,50,000 based on the same incriminating material, along with corroborating documentary evidence filed by the assessee. The appeal was allowed for statistical purposes, without making any findings on the merits of the addition.

What were the facts?

The assessee, Yashpalsinh Gajendrasinh Vaghela, filed an appeal against the order of the National Faceless Appeal Centre (NFAC), Delhi, dated 09/12/2025. The NFAC had dismissed the assessee's appeal against an assessment order dated 29/03/2025, passed under Section 147 read with Section 144 of the Income Tax Act, 1961, for Assessment Year 2020-2021. The original assessment order had made an addition of Rs. 34,50,000 under Section 69A, treating cash capital contribution to M/s Akshar Infrastructure as unexplained money. This addition was confirmed by the CIT(A). The assessee contended that the entire assessment and appellate process violated principles of natural justice by ignoring documentary evidence and that the addition was made relying solely on third-party evidence without cross-examination. The CIT(A) had dismissed the assessee's appeal due to non-compliance despite multiple hearing notices.

What were the issues?

1. Whether the order passed by the Learned CIT(A) is against law, equity, and justice? (Question of law and fact) 2. Whether the assessment and appellate process were conducted in violation of the principles of natural justice, with the Assessing Officer (AO) and CIT(A) ignoring key documentary evidence supporting the appellant's contention? (Question of law and fact) 3. Whether the addition of Rs. 34,50,000 under Section 69A as unexplained money, treating it as cash capital contribution to M/s Akshar Infrastructure, is void, illegal, and against the principles of natural justice, especially since the appellant was not a partner during the relevant year? (Question of law and fact) 4. Whether the Learned CIT(A) erred in law and fact by making the addition as unexplained money solely based on third-party evidence without providing cross-examination and personal hearing? (Question of law and fact) Assessee's Contentions: The assessee argued that the CIT(A) dismissed the appeal without granting a reasonable opportunity of being heard and that key documentary evidence was ignored. The assessee also contended that the addition was made relying on third-party evidence without cross-examination and personal hearing, violating principles of natural justice. Revenue's Contentions: The Departmental Representative submitted that despite sufficient opportunities being granted, the assessee failed to make a proper representation, justifying the CIT(A)'s decision to dismiss the appeal.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 69A,Section 115BBE,Section 132

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SMC” BENCH, AHMEDABAD

Per Rahul Chaudhary, Judicial Member:

1.

The present appeal has been preferred by the Assessee against the Order, dated 09/12/2025, passed by the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as the ‘CIT(A)’] whereby the Learned CIT(A) had dismissed the appeal against the Assessment Order, dated 29/03/2025, passed under Section 147 read with Section 144 of the Income Act, 1961 [hereinafter referred to as ‘the Act’] for the Assessment Year 2020-2021. 2. The Assessee has raised the following grounds of appeal:

1.

The order passed by the Ld. CIT (A) is against law, equity and; ju

The order continues below.

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