ITAT Allows Final Opportunity to Explain Non-filing of Return on Payment of ₹5k Cost, Remands Matter to JAO [Read Order]

The Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, allowed one final opportunity to explain non-filing of return of income to the assessee-appellant. The tribunal added a fine of INR 5,000 and remanded the matter to the Jurisdictional Assessing Officer (JAO).

The appeal was filed against the order passed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi [CIT(A)] dated 11.03.2025. This appellate order arose out of the ex-parte reassessment order passed under Section 147 read with Section 144 of the Income Tax Act, 1961 (the Act) relating to Assessment Year 2012-13.

The facts of the case state that the assessee is a retired teacher whose sons and daughter migrated to Canada in 2004. During the Financial Year 2011-12, she sold out her old house and purchased a new one for a consideration of INR 42,00,000/-. Since the assessee has not filed return of income and made investment in immovable property, the assessment was reopened by issuing notice under Section 148.

The assessee produced documents to the extent of INR 28,00,000/- for the purchase of immovable property and therefore the Assessing Officer (AO) made addition on the balance of INR 14,00,000/- as undisclosed investment.

This was appealed by the assessee to the CIT(A) who called for a remand report from AO and confirmed the addition made. The assessee-appealant then appealed to the ITAT.

The counsel for the assessee-appellant submitted that the sale of the old house where the considerations of INR 5,00,000/- and INR 4,00,000/- were additional sources. The counsel prayed for one more opportunity to be given to explain the details to the AO as the assessee’s son has an account in Axis Bank whose bank statements could sufficiently explain her expenditure.

The ITAT imposed a INR 5,000/- fine and set aside the orders passed by the lower authorities. The matter was remanded to the JAO to consider the merits in the assessee’s final opportunity to cooperate. The appeal was allowed for statistical purposes

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