MOHMED SAFI ABDULREHMAN SHEIKH,VADODARA vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 2(1)(1), VADODARA

The Assessee has raised the following grounds of Appeal:-

The brief facts of the case are that assessee filed his return of income electronically under section 139(1) of the Act on 10.03.2014, declaring total income of Rs.75,24,180/-. The return was processed - 3– under section 143(1) accepting the returned income. Since the case was selected for scrutiny under CASS, notice under section 143(2) dated 03.09.2014 was issued and duly served upon the assessee. Thereafter, several notices under section 142(1), including a notice under section 142(1) read with section 129, were issued requiring the assessee to furnish the requisite details and information. However, despite sufficient opportunities, the assessee failed to furnish the required details. Consequently, the Assessing Officer treated unsecured loans amounting to Rs.30,00,000/- as unexplained cash credits under section 68 of the Act and added the same to the total income of the assessee.

Aggrieved by the assessment order, the assessee preferred an appeal before the Ld. CIT(A) with a delay in filing the appeal. There was a delay of 3558 days in filing the appeal before the learned CIT(A). The assessee filed an application seeking condonation of the delay, explaining that the delay occurred due to bona fide reasons and was neither intentional nor deliberate. However, the Ld.CIT(A), not being satisfied with the explanation furnished, declined to condone the delay and dismissed the appeal in limine.

Being aggrieved by the said order, the assessee has preferred the present appeal before the Tribunal.

Before us, it was submitted that the assessee was suffering from persistent and serious health issues for a considerable period and remained medically incapacitated from attending to his business affairs. Due to prolonged hospitalization, continuous medical - 4– treatment and recovery, the assessee was not aware of the impugned order and could not take timely steps to file the appeal. It was further submitted that lack of proper guidance from the erstwhile Chartered Accountant, technical difficulties on the Income-tax portal, and non-availability of the assessment order, demand notice and computation sheet also contributed to the delay. It was therefore, submitted that the delay was due to bona fide and unavoidable circumstances and was neither intentional nor deliberate. Accordingly, it was prayed that the delay may kindly be condoned and the appeal be admitted for adjudication on merits. We have gone through the records and considered the submissions made by the assessee. Having regard to the circumstances explained, we condone the delay in filing the appeal. On merits, we find that the assessee remained non-compliant during the assessment proceedings and failed to furnish substantial evidence to establish the identity, creditworthiness of the creditors and genuineness of the loans. In the interest of justice, we therefore deem it appropriate to restore the issue to the file of the Assessing Officer for fresh adjudication in accordance with law. The assessee is directed to strictly comply with the notices issued by the Assessing Officer and furnish all relevant supporting documents, including bank statements, confirmations and identity proofs of the concerned parties, in support of the loan transactions. The Assessing Officer shall provide reasonable opportunity of being heard to the assessee before deciding the issue afresh.

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

""थ"/ The Respondent. 3. संबंिधतआयकरआयु"/ Concerned CIT 4. आयकरआयु"(अपील) /The CIT(A)- 5. िवभागीय"ितिनिध, आयकरअपीलीयअिधकरण, अहमदाबाद/ DR, ITAT, Ahmedabad 6. गाड"फाईल /Guard file. आदेशानुसार/ BY ORDER,सहायकपंजीकार (Dy./Asstt.