The Ahmedabad bench of the Income Tax Appellate Tribunal ( ITAT ) granted a hearing opportunity, acknowledging the assessee’s non-compliance with the Assessing Officer’s ( AO ) notices due to the ill-health of a family member.
Pankajkumar N. Patel, the assessee filed an income tax return for the assessment year 2012-13 declaring a total income of Rs. 2,46,200. The Assessing Officer ( AO ) reopened the assessment and passed an order under sections 147 and 144 of the Income Tax Act making additions due to non-compliance with notices issued to the appellant.
The assessee challenged the reopening of the assessment under Section 148 of the Income Tax Act claiming there was no escapement of income and that the reopening was for fishing and roving inquiries.
The assessee also challenged the addition of unexplained investments of Rs. 7,02,667 under Section 69A and the initiation of penalty proceedings under Section 271(1)(c) of the Income Tax Act, 1962.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
On appeal before the ITAT, the assessee’s counsel submitted additions related to a bank loan and amounts in the proprietor’s capital account which is linked to agricultural income, and explained that non-compliance was due to the ill-health of the assessee’s family members.
The two-member bench comprising Dr. BRR Kumar ( Vice President ) and Suchitra Kamble ( Judicial Member ) heard arguments from both sides and considered the material presented. The tribunal observed that the reason for the non-compliance to the notices issued by the AO was due to the ill health of the family member.
The tribunal observed that the assessee’s request for another opportunity to submit evidence was reasonable and would not prejudice the revenue. The tribunal remanded the matter to the Assessing Officer to reconsider the assessee’s submissions and decide accordingly. The assessee’s appeal was allowed for statistical purposes.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
