Delay Condoned by ITAT; Case Remanded to AO, Rs. 5,000 Directed to PM Relief Fund

ITAT condoned the delay of the assessee and remanded the case to the AO after directing a Rs. 5,000 penalty to the PM Relief Fund.

The present appeal has been filed by Suresh Nenmalji Malvi Vs ITO in the ITAT Ahmedabad, challenging the order dated November 25, 2025, passed by CIT(A) of the Income Tax Act 1961, for AY 2012-13.

The assessee filed an appeal before ITAT Ahmedabad after the CIT(A) dismissed his earlier appeal due to a delay of 20 days. The AR argued that the delay was minor and occurred because the assessee was not experienced in income tax matters, as he had not filed returns earlier and his case was reopened under Section 148. He requested that the delay be condoned and the matter be sent back to the CIT(A) for a decision on merits.

The AR also argued that the CIT(A) made a mistake in law and in fact by agreeing with the AO to add Rs. 99,70,000 as income under section 69A. This amount was claimed as the total sale price for shares of SMS Techsoft India Ltd., which were sold as part of a fraudulent scheme that targeted the appellant and 36 other people.

ITAT observed that the assessment was carried out ex parte, and the assessee did not take part in it. The assessee’s lawyer explained that the assessee didn’t participate for the same reasons mentioned earlier.

After considering all the facts, ITAT condones the delay before the CIT(A) and cancels the order given by them. The case will be sent back to the original officer (AO) for a fresh hearing.

However, directed the assessee to pay Rs. 5,000 as a penalty for not handling legal matters properly. ITAT added that this amount should be paid to the Prime Minister’s Relief Fund, and the assessee must show proof of this payment to the AO. Only after the AO gets this proof can they continue with the case. As a result, ITAT allowed the assessee’s appeal for statistical purposes.