YOGESH HARILAL PATEL,NAGPUR vs. ITO WARD-4(3), NAGPUR

ITA 2/NAG/2026Status: DisposedITAT Nagpur09 October 2026AY 2017-183 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that while the CIT(A) had issued notices and provided opportunities, there could be various reasons for the assessee's non-appearance or non-compliance on the disputed issues. Considering the facts, circumstances, and the principles of natural justice, the Tribunal decided to provide one more opportunity of hearing to the assessee to substantiate their case with evidence and information. Accordingly, the order of the CIT(A) was set aside, and the disputed issue was remitted back to the file of the CIT(A) for fresh adjudication. The assessee was directed to be provided with adequate opportunity of hearing and was expected to cooperate in submitting information for early disposal of the appeal. The grounds of appeal were allowed for statistical purposes.

What were the facts?

The assessee, Yogesh Harilal Patel, filed an appeal against the order of the CIT(A)/NFAC for Assessment Year 2017-18. The Assessing Officer (AO) made an addition of Rs. 39,20,000/- under Section 69A of the Income Tax Act, 1961, alleging substantial cash deposits of Rs. 39,20,000/- during the demonetization period in the assessee's bank account, which the assessee could not substantiate with documentary evidence. The AO assessed the total income at Rs. 46,21,350/-. The assessee's appeal before the CIT(A) was initially dismissed ex-parte due to non-compliance. The ITAT had previously restored the issue to the CIT(A) for fresh adjudication. Subsequently, the CIT(A) again dismissed the appeal ex-parte for non-compliance with hearing notices. The assessee then filed the present appeal before the ITAT.

What were the issues?

1. Whether the CIT(A) erred in dismissing the appeal ex-parte without considering the principles of natural justice, despite the assessee raising grounds challenging the addition made under Section 69A of the Income Tax Act, 1961? Assessee's contention: None appeared on behalf of the assessee. The judgment does not record any specific arguments made by the assessee before the Tribunal. Revenue's contention: The CIT(A) passed the order considering that there was no proper compliance by the assessee, despite adequate opportunities of hearing and notices being issued. Therefore, the CIT(A) was of the opinion that the assessee was not interested in prosecuting the appeal and dismissed it ex-parte, confirming the AO's action. The revenue relied on the fact that notices were issued and there was no response on disputed issues.

Which sections of the Income-tax Act were involved?

Section 69A,Section 143(2),Section 142(1),Section 143(3),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR “SMC” BENCH :: NAGPUR

Before: SHRI PAVAN KUMAR GADALE

Hearing: 06.10.2026Pronounced: 09.10.2026

PER PAVAN KUMAR GADALE, JUDICIAL MEMBER:

The assessee has filed the appeal against the order of CIT(A)/NFAC passed u/sec 250 of the Income Tax Act, 1961. The assessee has raised the grounds of appeal challenging the ex-parte order of CIT(A) in sustaining the addition made by the Assessing Officer .

2.

The Brief facts of the case are that, the assessee has filed the return of income for the A.Y. 2017-18 on 26.02.2018 disclosing a total income of Rs. 7,01,350/-. Subsequently, the case was selected for scrutiny under CASS and notice u/sec. 143(2) and u/sec142(1) of the Act are issued calling for the details, evidences and inf

The order continues below.

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