ITAT dismiss Ex Parte order passed without consider Savings of housewife Deposit in Joint Account [Read Order]

The Jaipur  Bench of the Income Tax Appellate Tribunal (ITAT) recently dismissed an ex parte order passed without considering the savings of the housewife deposited in a joint account.

The assessee Leela Devi Jain  had deposited cash in his joint savings bank account. Thereafter, she  had filed her return of income being belated showing total income of Rs. 1,77,350/-.

Further, the Income disclosed by the assessee in her belated return did not justify the source of cash deposited, therefore, proceeding under Section  147  Income Tax Act, 1961 was initiated and notice under Section  148 of Income Tax Act.

During the proceedings, the AO found that the assessee is a housewife. Her Husband is a government servant.  The assessee never filed her return of income prior to the year under consideration.

Therefore, the assessee was asked to explain the source of cash deposited. In reply, the assessee explained that cash was deposited out of savings of the husband and withdrawals from this account from time to time.

Then the AO without considering the  submissions  treated the amount deposited in the bank as unexplained income of assessee .

Aggrieved by the order, the assesee filed an appeal,before the Commissioner of Income Tax (Appeal) CIT(A) who passed an ex parte order against the assessee due to no appearance before the bench several times.

Against the exparte order, the assessee filed a second appeal before the tribunal.

Before the bench, the Muzaffar Iqbal counsel for assessee submitted that assessee is a house wife and she has not been given appropriate opportunity in the appeal filed before the CIT(A) and even the CIT(A) has not disposed of the appeal of the assessee on merits.

Monisha Choudhary, Counsel for revenue submitted that the assessee was given sufficient opportunity of being heard by the CIT(A) and the assessee has not submitted the arguments on merits.

The tribunal after considering the appeal  observed that the assessee is a house wife and she has deposited the cash on various dates in the savings account maintained jointly with her husband.

Further, submission of the assessee has not been dealt  with by the assessing officer so as to consider the savings of the  assessee, withdrawal out of salary of her husband lying with her .

It was also observed that  the cash flow statement submitted by assessee why  not  appropriate is not dealt with by passing a speaking order.

After reviewing the facts and submissions, the two member bench of the tribunal comprising Rathod Kamlesh Jayantbhai, (Accountant Member) and Dr. S. Seethalakshmi, ( Judicial Member) remand the issue to the file of Assessing officer and direct to provide opportunity to assessee. 

To Read the full text of the Order CLICK HERE

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