The Chandigarh Bench of the Income Tax Appellate Tribunal ( ITAT ) condoned a 228-day delay in filing an appeal acknowledging illiterate agriculturists lacked awareness of tax procedures and remanded unexplained cash credit matters for reconsideration.
Joginder Singh, the assessee, an agriculturist residing in Mohali, contested the order dated 10.02.2023, passed by the Commissioner of Income Tax (Appeals) concerning the Assessment Year 2011–12.
The assessee argued that the cash deposits in his bank account totaling Rs. 37,55,000, were proceeds from the sale of agricultural land and agricultural income, not unexplained income. However, the Commissioner of Income Tax (Appeals) [CIT(A)] upheld the addition due to the lack of explanation provided during earlier proceedings.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
Aggrieved by the Commissioner of Income Tax (Appeals) [CIT(A)]’s order, the assessee approached the Chandigarh bench of the Income Tax Appellate Tribunal (ITAT). The assessee’s counsel argued that the appeal delayed by 228 days was due to the assessee’s illiteracy, non-receipt of the CIT(A)’s order, and personal distress following the death of his wife.
The single bench member comprising Sanjay Garg (Judicial Member) observed that the assessee, being illiterate and unfamiliar with tax procedures, could not effectively participate in the initial assessment or appeal processes. His counsel emphasized these factors and requested an opportunity for a detailed presentation of his case.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
After considering the submissions, the tribunal condoned the delay in filing the appeal and set aside the CIT(A)’s order. It directed the AO to reassess the case, allowing the assessee to furnish evidence supporting his claims.
The tribunal explained that the reassessment should provide the assessee with a fair opportunity and advised him to cooperate fully to avoid unnecessary delays. The tribunal treated the appeal as allowed for statistical purposes
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