Non-Cooperation with Dept cannot be Sole ground for Addition u/s 69A: ITAT [Read Order]

The Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) has held that mere non-cooperation with the department cannot be the sole ground to make an addition under section 69A of the Income Tax Act, 1961.

The assessee, Zakir Ibrahim Jamadar is an individual carrying out agricultural activities. The assessee has never filed a return of income as there is no taxable income. The Assessing Officer issued a notice asking why not the above cash deposits are being treated as unexplained income for the A.Y. 2012- 13. The assessee neither filed any reply to the assessee nor any Return in spite of 142(1) notice had been issued to the assessee and the same was confirmed later.

The Tribunal bench comprising Shri Pramod M Jagtap, Vice President, and T.R. Senthil Kumar, Judicial Member accepted the contention of the assessee that he is an agriculturist and never filed Return of Income as there is no income assessable to income tax and the cash deposits in HDFC Bank and State Bank of India are nothing but the compensation received from State Government on the compulsory acquisition on agricultural land.

Quashing the order, the Tribunal further held that “at the same time the Revenue cannot make the additions under Section 69A for the reason that assessee has not cooperated with the department. To meet the ends of justice we deem it fit to condone the delay of 10 days in filing the appeal before the Ld. CIT(A) and, thus, we condone the same. Further, we set aside the order passed by the Ld. CIT(A) and remand the matter back to the Ld. CIT(A) with a direction to pass fresh order upon giving adequate opportunity to the assessee to explain its case and pass orders in accordance with the law.”

Shri Mukund Bakshi appeared for the assessee.

To Read the full text of the Order CLICK HERE

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