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Facts
The assessee filed an appeal with a 296-day delay against an ex-parte order of the CIT(A), which stemmed from a reassessment order under Section 147 concerning cash deposits of Rs. 33.34 Crores. The CIT(A) had passed the ex-parte order after the assessee failed to comply with multiple hearing opportunities, citing the accountant's inability to check emails during a personal emergency.
Held
The tribunal condoned the 296-day delay in filing the appeal as the Revenue had no serious objection. It set aside the ex-parte order of the CIT(A) and remanded the case, directing the CIT(A) to grant the assessee one more opportunity for a hearing on merits, expecting the assessee's cooperation.
Key Issues
1. Whether to condone a 296-day delay in filing an appeal. 2. Whether an ex-parte order passed by CIT(A) due to non-compliance should be set aside to provide another opportunity for hearing on merits.
Sections Cited
147
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH
Before: Smt. Annapurna Gupta & Shri T.R. Senthil Kumar
Assessment Year. 2016-17 Maheshprasad Murarilal Income Tax Officer Agarwal Ward-6(1)(1), 21/665, Geetamandir, Vs Ahmedabad Amraiwadi Road, Amraiwadi, Ahmedabad-380026 (Respondent) Gujarat, India PAN: ABCPA2913R (Appellant) Assessee Represented: Shri Aseem L Thakkar, A.R. Revenue Represented: Shri Rignesh Das, CIT-DR Date of hearing : 17-07-2025 Date of pronouncement : 23-07-2025 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:-
This appeal is filed by the Assessee as against the exparte appellate order dated 31.10.2023 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, (in short referred to as “CIT(A)”), arising out of the reassessment order passed under section 147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2016-17.
A.Y. 2016-17 Page No 2 Maheshprasad Murarilal Agarwal vs. ITO
The registry has noted that there is a delay of 296 days in filing the above appeal by the assessee. The assessee filed a Notarized Affidavit that he has engaged a part time Accountant for writing books of accounts and coordinate with Chartered Accountant in getting the books of accounts audited, filing the Return of Income, etc. However he is not aware of the e-mail proceedings and on-line filing details. The consultant also filed a Notarized Affidavit stating that in 2023 he was looking after his sister’s husband who were terminally ill and after hospitalized and ultimately passed away on 06-05-2024. During that period, the Accountant failed to look into the e-mail notices sent by Ld. CIT(A) which has resulted in filing the above appeal with the delay of 296 days. The assessee further stated that pursuant to the penalty proceedings initiated by the Assessing Officer, he came to know about the exparte appellate order passed by Ld. CIT(A) and therefore requested to condone the delay and requested to grant one more opportunity before Ld. CIT(A) to argue the case on merits.
Ld. CIT-DR appearing for the Revenue has no serious objection in condoning the delay. Recording the same, the delay of 296 days in filing the above appeal is hereby condoned.
It is the case of the assessee that cash deposit to the extent of Rs.33,34,69,246/- made in his bank accounts, who is running the business of trading of Food grain, Pulses, Sugar, etc. During the course of reassessment proceedings, assessee furnished certain details which was not found to be satisfactory, thereby the assessing officer made addition. On filing appeal against that order, A.Y. 2016-17 Page No 3 Maheshprasad Murarilal Agarwal vs. ITO Ld. CIT(A) given four opportunities of hearing which was not complied by the assessee. Therefore in the interest of Principle of Natural Justice, we deem it fit to set-aside the appellate order to the file of Ld. CIT(A) with the direction to give one more opportunity of hearing to the assessee and pass order on merits of the case. Needless to say, the assessee should co-operate with the appellate proceedings by filing all necessary details and documents for passing order on merits.
In the result, the appeal filed by the Assessee is allowed for statistical purpose.
Order pronounced in the open court on 23-07-2025 Sd/- Sd/- (ANNAPURNA GUPTA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 23/07/2025 आदेश क� ��त�ल�प 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 अपील�य अ�धकरण, अहमदाबाद