BHAVIN HIMMATBHAI BHADIYADRA,SURAT vs. ITO, WARD-2(3)(1), SURAT

The background facts leading to present appeal are such that the Ld. AO has passed ex-parte assessment-order dated 15.03.2024 in the case of assessee u/s 144 r.w.s. 147 in “No-PAN” status, thereby assessing total income at Rs. 65,50,000/- u/s 68 on account of unexplained cash credit. Aggrieved, the assessee carried matter in first-appeal whereupon the Ld. CIT(A) dismissed assessee’s appeal, without admitting the same, on account of delayed filing by 3 months and 11 days. Now, the assessee has come before us in present appeal.

The effective grounds raised by assessee are as under: “1. The ld. CIT(Appeals) has erred in law and on facts of the case, in dismissing the appeal on account of delay. 2. Notice issued u/s.148 as well as assessment order passed u/s.144 r.w.s. 147 are bad in law. 3. The Ld. AO erred in law and on facts of the case in making addition of Rs.65,50,000/- u/s.68 on account of alleged bogus loan.”

In Ground No. 1, the assessee claims that the Ld. CIT(A) has erred in dismissing assessee’s appeal on account of delay.

In order to adjudicate this ground, we re-produce below the order passed by Ld. CIT(A):

During hearing before us, the Ld. AR for assessee submitted that the Ld. AO passed assessment-order in “No-PAN” category and that the assessment-order was although dated 15.03.2024 was actually served to assessee on 26.06.2024 and that is why the assessee mentioned “Date of order as 15-Mar-2024” and “Date of service of order as 26-Jun-2024” in Column No. 2 of Form No. 35 filed to CIT(A). Thereafter, since the appeal before Ld. CIT(A) was filed on 25.07.2024 within the statutory period of 30 days from date of service of assessment-order, there was no delay in filing appeal before Ld. CIT(A). Hence, the assessee mentioned “No” in Column 14 of Form No. 35 asking “Whether there is delay in filing appeal”. While we record this submission of Ld. AR, we find that the issue of delayed filing needs to be resolved by Ld. CIT(A) as the Ld. CIT(A) has concluded thus: “Hence, since, appeal was not filed within prescribed time as provided in section 249(2) of the IT Act, the same is not admitted.”

Further, by means of Ground No. 2, the assessee is challenging the legality of the notice issued u/s 148 and consequential assessment-order passed u/s 144. The Ld. AR for assessee made certain submissions in this regard.

By means of Ground No. 3, the assessee is challenging the merits of the addition of Rs. 65,50,000/- made by Ld. AO. The Ld. AR for assessee submitted that the similar addition on account of unexplained cash credit made by AO in the case of assessee’s sister “Shital Rajeshkumar Bhadiyadra” has been deleted by this bench in ITA No. 1256/SRT/2025, order dated 18.08.2026 and therefore the present assessee deserves the benefit of said decision. While submitting so, the Ld. AR, however, agreed that the loans aggregating to Rs. 65,50,000/-, which have been treated by Ld. AO as unexplained cash credit, were taken from different parties than the loans taken by assessee’s sister and to that extent there is a change in facts.

Ld. DR for revenue submitted that the assessment-order passed by Ld. AO is ex-parte and the Ld. CIT(A) has also dismissed assessee’s appeal as non-admitted. Thus, all details and documents being relied by assessee/Ld. AR have not gone through a proper scrutiny by lower authorities. Therefore, the present matter must be remanded back.

Upon a careful consideration and having regard to the facts and circumstances of the case, we set aside the impugned order of the Ld. CIT(A) and restore the matter to his file for fresh adjudication. The Ld. CIT(A) shall examine the relevant material concerning service of the order and notice of demand and determine the issue of limitation in accordance with law. If the appeal is found to be within limitation, the same shall be admitted; if it is found to be delayed, the Ld. CIT(A) shall consider the question of condonation of delay in accordance with law after affording the assessee a reasonable opportunity of being heard. Upon admission of the appeal, the Ld. CIT(A) shall adjudicate the grounds relating to the validity of the reassessment proceedings and the addition of Rs. 65,50,000/- u/s 68 on merits, after giving both sides a reasonable opportunity of being heard. The Ld. CIT(A) shall pass a reasoned order in accordance with law, uninfluenced by the findings in the impugned order. Ordered accordingly.

In result, this appeal is allowed for statistical purposes.