The Hyderabad Bench of Income Tax Appellate Tribunal (ITAT) has levied the cost of Rs 5000 to be paid towards Prime Minister’s relief fund for callous attitude of ignoring notices of Commissioner of Income Tax Act (CIT(A) (NFAC) National Faceless Assessment Centre
The assessee, Mareddy Jagan Mohan was an individual and had deposited an amount in his Bank Account during the demonetization period in the financial year 2016-17. Since he had not filed his return of income within the statutory time allowed under Section 139(1) of the Income Tax Act, 1961, a notice under Section 142(1) of the Income Act was issued calling for certain information.
After considering the submissions filed by the assessee explaining the source of income, the Assessing Officer held that an amount of Rs.15.00 lakhs deposited on 15.11.2016 was unexplained and brought the same to tax as per provisions of Section 69A read with Section 115BBE of the Income Tax.
Hari Krishna, on behalf of the assessee submitted that all the details were submitted to the Counsel of the assessee who was supposed to appear before the CIT (A) NFAC. However, unfortunately, the said Counsel did not appear before the CIT (A) NFAC for which the learned CIT (A) NFAC dismissed the appeal for want of prosecution. He submitted that in the interest of justice, the assessee should be given an opportunity.
KPRR Murthy, on behalf of the revenue submitted that the CIT (A) NFAC had given 3 opportunities to the assessee but the assessee did not avail of these opportunities. He submitted that the Assessing Officer had already granted substantial relief to the assessee by accepting an amount and since the assessee could not explain the source of the remaining Rs.15.00 lakhs, the Assessing Officer made the addition which had rightly been sustained by the CIT (A) NFAC.
The two-member Bench R.K. Panda, (Vice-President) and K. Narasimha Chary, (Judicial Member) observed that the CIT (A) NFAC had sustained the addition made by the Assessing Officer in absence of any submission or documentary evidence filed by the assessee despite 3 opportunities granted. It was the submission of the Counsel for the assessee that had given an opportunity, the assessee was in a position to substantiate his case by explaining the source with documentary evidence to the satisfaction of the CIT (A) NFAC.
The CIT (A) NFAC with a direction to grant one last opportunity to the assessee to substantiate his case and decided the issue as per fact and law. The assessee was also hereby directed to appear before the CIT (A) NFAC on the appointed date without seeking any adjournment under any pretext failing which the learned CIT (A) NFAC was at liberty to pass appropriate order as per law.
At the same time the Bench also levied a cost of Rs.5000/ on the assessee which was to be paid to the PMs Relief Fund due to the callous attitude of the assessee in ignoring the notices of the CIT (A) NFAC.
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