The Pune bench of the Income Tax Appellate Tribunal ( ITAT ) chaired by R.S. Syal (VP) directed the Commissioner of Income Tax (Appeals) to adjudicate the appeal filed manually as they rejected the appeal filed by the assessee on the reason that it was not filed electronically.
The bench noted that though the requirement of e-filing of appeals exists but because of certain procedural aspects and the assessee coming from a rural background, was unaware of the e-filing procedure.
Further, under these circumstances the tribunal was satisfied that the ends of justice would meet adequately if the impugned order is set aside and the matter is remitted to the file of the CIT(A).
The appeal by the assessee, Deepak Shriniwas Mantri arises out of the order passed by the CIT(A) in National Faceless Appeal Centre, Delhi in relation to the assessment year 2008-09.
The bench heard both sides and observed that the assessment order in this case was passed ex-parte under section 144 of the Income Tax Act, 1961 determining total income at Rs.20,35,910 as against Rs.1,41,200 declared by the assessee.
The authority of the Assessing Officer (AO) to estimate a taxpayer’s income using their best judgement is mentioned in Section 144 of Income Tax Act. When the assessing officer is dissatisfied with the taxpayer’s adherence to tax regulations or the veracity of the information provided by the taxpayer, this clause is invoked.
In accordance with this provision, the AO may send a notification to the taxpayer requesting the information or supporting documentation for their income tax return. If the taxpayer ignores the notice, the assessing officer may proceed to estimate the taxpayer’s income using his best judgement and the information at his disposal.
The appeal preferred by the assessee was dismissed by the CIT(A) on the ground that the appeal was filed physically and not e-filed. However, it was admitted by him that the appeal physically filed was on time.
The single ITAT bench ordered to dispose of the appeal on merits afresh after allowing a reasonable opportunity of hearing to the assessee.
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