JUDY S KAMAL,BANGALORE vs. INCOME-TAX OFFICER, WARD-1(1)(1)(, BANGALORE

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ITA 697/BANG/2023Status: DisposedITAT Bangalore22 November 2023AY 2016-173 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the issue to the Assessing Officer for fresh consideration due to the assessee's explanation of family disputes preventing her from appearing. The assessee was directed to submit necessary documents.

What were the facts?

The assessee claimed an exemption of Rs. 1,10,00,000, but failed to provide any supporting documents to the Assessing Officer (AO) or the CIT(Appeals) despite multiple notices. The AO treated the entire exemption claim as income under Section 68.

What were the issues?

Whether the assessee's failure to provide documentation for an exemption claim warrants its addition as income, and if family disputes constitute a valid reason for non-compliance.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH : BANGALORE

Before: SMT. BEENA PILLIA, JUDIIAL MEMBER & SHRI LAXMI PRASAD SAHU

For Appellant: Shri Paul Ravi Teja, CA
For Respondent: Shri Nischal B., Addl.CIT(DR)(ITAT), Bengaluru
Hearing: 21.11.2023Pronounced: 22.11.2023

Per Laxmi Prasad Sahu, Accountant Member

1.

This appeal is filed by the assessee against the DIN & Order ITBA/NFAC/S/250/2023-24/1053961883(1) dated 26.6.2023 of the CIT(Appeals), National Faceless Appeal Centre, Delhi [NFAC] for the AY 2016-17.

2.

The brief facts of the case are that the assessee filed return of income on 31.3.2018 declaring an income of Rs.1,600. The case was selected for scrutiny under CASS and statutory notices were issued to the assessee calling for certain documents and particulars of income and expenditure. The AO noticed that the assessee has claimed exemption of Rs.1,10,00,000. During assessment despite various notices issues, the assessee did not file any document. Thereafter, show cause notice was issued by the AO which also remained unresponded by the assessee. Accordingly, the AO treated the entire claim of exempt amount of Rs.1,10,00,000 u/s. 68 of the Act.

3.

On appeal, the CIT(Appeals) also issued various notices on different dates, but the assessee did not respond to any of the notices. Therefore, the CIT(Appeals) decided the issue on the basis of material available before him and dismissed the appeal of the assessee. Aggrieved, the assessee is in appeal before the Tribunal.

4.

The ld. AR submitted that the assessee could not appear before the AO as well as the CIT(Appeals) due to her family disputes. In this regard, he has filed a copy of the complaint dated 16.12.2018 to the Station House Officer, HAL Police Sation, Bangalore, which is placed on record. The ld. AR submitted that if a chance is given to the assessee, she will file necessary documents in support of her case before the department. The ld. DR had no objection to this request of the assessee.

5.

After hearing both the sides, perusing the entire material on record and the orders of the lower authorities, we note that the assessee did not represent her case before the AO as well as the CIT(Appeals) and in this regard has explained the reason for not complying with the notices issued by both the authorities due to family disputes. Considering the prayer of the ld. AR of the assessee and in the interest of justice, we restore the issue to the Assessing Officer for de novo consideration and decision in accordance with law after giving reasonable opportunity of being heard to the assessee. The assessee is directed to file necessary documents in support of her case and not to seek unnecessary adjournment for early disposal of the case.

6.

In the result, the appeal by the assessee is allowed for statistical purposes.

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