CHANDRASHEKAR,HASSAN vs. INCOME TAX OFFICER, WARD-1 & TPS, HASSAN

The brief facts of the case are that the assessee is an individual and runs a petrol bunk in the name and style of M/s. Shiva Prasad Service Station. During the A.Y., the assessee had made cash deposits into his bank account maintained with State Bank of India. The AO based on the said information, had initiated proceedings u/s. 148 of the Act and notice

As against the said order, the assessee filed an appeal before the Ld.CIT(A). Even before the Ld.CIT(A), the assessee had not responded and therefore the Ld.CIT(A) had dismissed the appeal for non-prosecution.

As against the said order, the present appeal has been filed by the assessee before this Tribunal.

At the time of hearing, the Ld.AR submitted that the assessee was not able to access the email ID given under the primary contact in the IT portal and also the assessee had some medical emergencies and therefore the day- to-day operation of the petrol bunk was handed over to his brother and his brother in turn engaged an accountant for complying with the statutory requirements. The Ld.AR therefore submitted that the accountant resigned from his job and therefore the assessee was not able to access the email ID and therefore the assessee was not able to appear before the AO as well as before the Ld.CIT(A). On merits, the Ld.AR submitted that the assessee is running a petrol bunk and the collections received on the sale of petrol / diesel was deposited into his bank account and also submitted that the sales were duly recorded and reported in the GST returns and therefore submitted that another opportunity may be granted to the assessee to establish their case before the AO.

The Ld.DR submitted that the assessee had neither appeared before the AO nor appeared before the Ld.CIT(A) and therefore prayed to confirm the orders of the lower authorities.

The reason given by the assessee for the non-appearance before the AO as well as before the Ld.CIT(A) is that he has not received any communication about the assessment proceedings and the appeal proceedings and also because of some medical emergencies, the assessee was not able to look after the business and therefore the assessee had not able to access the email ID and therefore not able to respond to the various notices issued by the authorities. We have also considered the fact that the assessee is running a petrol bunk and also filed his return under the GST Act and in such circumstances, the cash deposits made by the assessee could not be termed as unexplained money u/s. 69A of the Act. But unfortunately, the assessee had not brought this facts to the notice of the authorities and therefore the authorities having left with no other option had concluded that the deposits are unexplained money u/s. 69A of the Act.

Considering the fact that the assessee was having some medical emergencies and also the accountant had left the job and therefore the assessee was not able to access the email ID and also the fact that the assessee is a registered dealer under the provisions of the GST Act and also filed their return under the said Act, we are of the view that one more opportunity may be granted to the assessee to appear before the jurisdictional AO and produce the necessary supporting documents. We, therefore set aside the orders of the lower authorities and remitted this issue to the file of the jurisdictional AO for passing fresh orders after hearing the assessee as well as after considering the documents filed by the assessee. We also direct the assessee to pay a sum of Rs. 10,000/- by way of cost to the Prime Ministers National Relief Fund within a period of 90 days from the date of receipt of this order and produce the receipt for the said payment before the AO and thereafter the jurisdictional AO is directed to conclude the assessment in accordance with law.