ITAT Directs CIT(A) to Allow One More Opportunity for Hearing, Subject to Cost Payment
The Income Tax Appellate Tribunal (ITAT), Ahmedabad, has recently ruled in favour of an assessee, despite non-compliance on his side.
The assessee, Sobransingh Tahrasrih Parihar, had filed his income tax return (ITR) for AY 2020-21 on 13.01.2021, declaring an income of Rs 5,06,268. The case was selected for scrutiny to review the business expense. During the assessment proceedings, the AO disallowed a commission expense claim of Rs 56,73,250 as the assessee did not make any agreements to substantiate the payment. Further, the AO claimed the inquiry made under section 133(6) of the Act did not get enough responses.
The assessee filed an appeal before the CIT(A), which also upheld the AO’s decision and rejected the appeal. Therefore, the assessee filed an appeal before the Income Tax Appellate Tribunal (ITAT), Ahmedabad. The assessee has submitted that the non-compliance before the notices of CIT(A) was due to the health issues of the assessee. The assessee requested the tribunal to grant another opportunity to explain the matter.
The tribunal observed that even though the assessee was having health issues, his business did not stop, as he was supported by enough manpower in his business. The tribunal said that the assessee’s accountant or the counsel could have made compliance before the CIT(A). Since the explanation for non-compliance was not found reasonable, the Tribunal imposed a cost of Rs. 5,000 on the assessee, which was required to be paid to the Prime Minister’s National Relief Fund within 15 days. The Tribunal directed the CIT(A) to give the assessee one more opportunity to be heard once the assessee makes the payment on time.
The tribunal also allowed the assessee to submit extra evidence and CIT(A) to get a remand report from the AO on the extra evidence submitted by the assessee.
Case Citation: Sobransingh Tahrasrih Parihar Vs Income Tax Officer (ITAT Ahmedabad); ITA No.1704/Ahd/2025; 04/11/2025; 2020-21
