71-Year-Old Senior Citizen Not Tech Savvy to Check E-mails and Income Tax Portal: ITAT grants Final Opportunity to Contest S. 69A Addition [Read Order]

The Bengaluru Bench of the Income Tax Appellate Tribunal (ITAT) granted a final opportunity to a 71-year-old senior citizen who was unable to check his e-mails and access the Income Tax portal due to not being tech-savvy and condoned a 283-day delay.

The appeal arose from an assessment completed under Section 144, where the AO treated the total amount of ₹17,06,582, comprising both cash and bank transfers, as unexplained money.

The AO had initially observed that the assessee failed to explain cash deposits of ₹6,51,500 in specified bank notes during the demonetization period, but later brought the entire amount to tax under Section 69A. The assessee neither filed her return nor responded to statutory notices issued under Sections 142(1) and 144, leading to an ex parte assessment order.

Subsequently, the CIT(A)/NFAC dismissed her appeal for non-prosecution after granting six opportunities, observing that the assessee failed to submit any explanation or evidence.

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Before the Tribunal, the assessee sought condonation of delay, supported by an affidavit explaining that she was unaware of the appellate order since all communications were routed electronically.

The Bench comprising Waseem Ahmed (Accountant Member) and Keshav Dubey (Judicial Member) noted that she was a senior citizen, not conversant with English, nor equipped with digital literacy to check e-mails or the income tax portal.

Referring to the Supreme Court’s ruling in Collector, Land Acquisition v. Mst. Katiji, the Bench reiterated that when substantial justice and technicalities conflict, the former must prevail. It emphasised that rejecting the condonation would amount to “legalising injustice on technical grounds” and highlighted that the Revenue cannot unjustly retain tax without proper legal authority.

The Tribunal also cited precedents such as People Education & Economic Development Society v. ITO and CIT v. K.S.P. Shanmugavel Nadar, where even long delays were condoned when reasonable cause was shown. Observing that a delay of 283 days was neither excessive nor deliberate, the ITAT accepted the explanation and admitted the appeal.

On merits, the tribunal remanded the case back to the AO with directions to decide afresh after granting a reasonable opportunity to the assessee. It cautioned that while leniency was shown considering her circumstances, any further non-cooperation would disentitle her from future relief.

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