Non-Compliance of Notice issued by CIT(A) during appeal proceedings: ITAT directs to Deposit Cost of Rs. 20,000 in PM Relief Fund [Read Order]

The Income Tax Appellate Tribunal (ITAT) Mumbai Bench directed the deposit cost of Rs. 20,000/ in Prime Minister Relief Fund due to non-compliance of notice issued by the CIT(A) during appeal proceedings. The tribunal observed that the assessee failed to substantiate the claim in respect of deposit of cash made in bank account.

The assessee ,Sanjay Chandrakant  is an individual and employee of the Reserve Bank of India (RBI) and also claimed as partner in firm M/s Shree Swami Samarth Hotel.After filing the return of income assessee case was selected for scrutiny .

During the course of assessment proceedings, the officers observed cash deposits in bank accounts maintained with Apna Sahakari Bank and Canara Bank. However, due to failure on the part of assessee in explaining the source of the same, the Assessing Officer treated the said cash deposits as unexplained credit/investment .

Aggrieved, the order assesee filed an objection before the Commissioner Of Income Tax (Appeal) who upheld the addition .Therefore the assessee filed appeal before the tribunal

Before the tribunal, Rahul Hakani, the Counsel for assessee submitted that order of the CIT(A) was issued on 09.06.2017. However, due to nonpayment of fee of the consultant, he did not cooperate and password of the assessee’s account on the Income Tax website was also not provided to the assessee. Thereafter, Covid restrictions also delayed the filling in appeal, which was ultimately filed on 23.02.2022.

Sunny Mathews, Counsel for Revenue, supported the decision of the lower authorities.

It was observed by the tribunal that the  CIT(A) has issued as much as four notices and thereafter issues final opportunity but no effective compliance was made on the part of the assessee. Thus, it is evident the assessee has not cooperated before the lower authorities for verification of the it’s own documents and claims

After reviewing the facts and submissions of the both parties, the two member bench of Om Prakash Kant (Account Member)  and Kavitha Rajagopal (Judicial Member) held that restore the issue back to the CIT(A), however, looking at the non compliant conduct of the assessee and total disregard of the proceedings before the CIT(A), imposed a cost of Rs. 20,000/-.

The assessee was directed to deposit the same into Prime Minister Relief Fund within seven days of receipt of this order.

To Read the full text of the Order CLICK HERE

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