Taxpayer Not Well Versed with Income Tax Proceedings: ITAT Gives Final Opportunity, Directs Compliance [Read Order]

The Income Tax Appellate Tribunal (ITAT), Pune Bench, gave the assessee-appellant a final opportunity to comply and participate in the proceedings in the interests of justice. The appellant had admitted that they were not well versed with income tax proceedings.

The assessee, Tukaram Dnyaneshwar Bhalekar, was engaged in business of retail trading of agriculture and animal husbandry services. He had not filed his return of income within the time limit as per Section 139 of the Act.

The Assessing Officer (AO) had the information that he had made such a cash deposit amounting to INR 1,42,79,000/- and issued notice under section 148. AO completed the assessment under section 147 which is read with section 144 of the Act, determining the total income at INR 1,42,79,000/-.

The Commissioner of Income Tax (Appellate) had ordered ex-parte that a cash deposit of INR 1,42,79,000/- in the bank account was to be treated as unexplained deposits under Section 69A of the Income Tax Act, 1961 (the Act).

The CIT(A) dismissed the appeal as there was a delay of 143 days in filing it with no application for condonation for delay nor any explanation or affidavit filed to justify such delay. Aggrieved by the order of the CIT(A)/National Faceless Assessment Centre (NFAC), the assessee-appellant appealed before the ITAT.

The counsel for the appellant submitted that in the interest of justice, the appellant should be given an opportunity to file the requisite details before CIT(A)/NFAC and that he is not well versed with the income tax proceedings. The Department stressed on the impugned order and its reasonings.

The tribunal observed the paper book filed by the assessee. They also observed that assessment without details was completed as per sections 147 and 144 which determined the total cash deposit of INR 1,42,79,000/- as unexplained money under section 69 of the Act.

The bench, consisting of R.K. Panda (Vice-President) and Astha Chandra (Judicial Member), ruled in favour of the assessee to grant one opportunity to substantiate the assessee’s case through the filing of requisite documents so that the matter be decided on fact and law. The assessee had no liberty for further adjournment and must submit the details on the appointed date. In conclusion, the appeal was allowed for statistical purposes.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates