The Hyderabad Bench of the Income Tax Appellate Tribunal (ITAT), granted opportunity to assessee for appearance before Commissioner of Income Tax (Appeals) (CIT(A)) being Senior citizen and not aware digital communication.
The assessee, Abdul Muqeet Mohammed is an individual deriving income and filed his return of income for A.Y. 2019-20 admitting a total income of Rs.8 lakhs. On receipt of credible information that the assessee and another were indulged in illegal storage and selling of banned noxious tobacco products at the premises of assessee, police authorities reached spot and found certain tobacco in the racks of shop and also cash of Rs.19 lakhs.
On enquiry, assessee failed to explain the sources of the above cash and as such notice u/s 132 of the Income Tax Act was issued and the said cash was seized from the assessee. On calling certain information, assessee initially replied that the same was the sale proceedings of land sold by his brother’s son of but could not produce evidence to that effect.
Subsequently, assessee stated that the same was nothing but his business receipts and since he was not maintaining books of accounts for his business, he was unable to provide documentary evidence and voluntarily offered the seized amount of Rs.19 lakhs as his business income.
During the course of assessment proceedings, assessee did not respond to any of the notices and hence, the Assessing Officer completed the assessment inter-alia by making an addition of Rs.19 lakhs u/s 69 of the Income Tax Act treating the same as unexplained amount.
The Counsel for the assessee submitted that assessee is aged about 70 years and is suffering from old age ailments. He had also submitted that on account of old age, assessee was not able to respond to the various notices issued by the learned respondent and as such failed to participate in the proceedings and that one more opportunity may kindly be granted to the assessee to enable him to participate in the proceedings before the CIT(A).
The Tribunal of Laliet Kumar, Judicial Member observed that “The assessee should not be made to suffer and more particularly, when the assessee happened to be a senior citizen and is not conversant with the digital communication. Therefore, I deem it appropriate to restore the appeal for afresh adjudication before the CIT(A) and I hereby direct the CIT(A) to grant one opportunity only to the assessee.”
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