The Pune bench of Income Tax Appellate Tribunal (ITAT) has recently quashed the revision order passed under Section 263 of Income Tax Act 1961 during covid-19 pandemic.
The assessee Subhash Devidas Mind is an individual. No regular return of income under the provisions of Section 139(1) of the Income Tax Act was filed by the assessee .
The Assessing Officer (AO) observed that the assessee had deposited cash in two savings bank accounts during the financial year relevant to the assessment year 2011-12 and AO issued a notice under Section 148 Income Tax Act calling upon the appellant to file the return of income.
While making the assessment order, AO treated cash deposits of Rs.17,01,000/- received on sale of plots as explained and balance amount of Rs.31,27,700/- was treated as unexplained cash deposits in two savings bank accounts.
Subsequently the Principal commissioner of Income Tax(PCIT) reviewed the assessment record and opined that the Assessing Officer should have adopted the total consideration of Rs.1,34,22,780/- in respect of Rs.17,01,000/- on sale of consideration of plots and, accordingly, concluded that the assessment order passed by the AO is erroneous and prejudicial to the interests of the Revenue.
Thereafter the Principal commissioner of Income Tax issued a show-cause notice under Section 263 of Income Tax Act.
Despite several opportunities given to the assessee had not replied to the said show-cause notice. Therefore, the Principal commissioner of Income Tax had proceeded to pass an ex-parte order by setting aside the assessment order and directed the AO for de novo assessment.
Aggrieved by the order, the assesee filed an appeal before the tribunal.
The ITAT during the hearing of the appeal observed that final show-cause notice was issued during the peak period of the Pandemic Covid-19. So it could be understood that the assessee was prevented from causing the appearance before the Principal commissioner of Income Tax on account of difficulties faced by the assessee on account of Covid-19 Pandemic.
Thus, the two member bench of Inturi Rama Rao(Accountant Member)and S.S. Viswanethra Ravi, (Judicial Member) observed that the assessee could not represent the matter before the Principal commissioner of Income Tax on account of difficulties faced on account of Covid-19 Pandemic which constitute a reasonable and sufficient cause for non-appearance.
Therefore, the bench allowed the appeal filed by the assessee.
P. P. Kulkarni, counsel appeared for the assessee. Sardar Singh Meena, counsel appeared for revenue .
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