SENTHIL MOOKAN,CHENNAI vs. DCIT, CHENNAI

The assessee is an individual and is a vendor in agriculture products. The assessee did not file the return of income for AY 2018-19. The A.O received information that the assessee has substantial financial transactions in the bank account. Since the assessee did not file the return of income, the AO reopened the assessment by issue of notice u/s. 148 of the Act after passing the order u/s. 148A(d) of the Act. The assessee in response filed the return of income declaring total income of Rs. 2,30,750/-. Since the assessee did not file any further details, the A.O based on the data available on record estimated the income of the assessee at 15% of the gross receipts as reflected in the bank statement to make an addition of Rs. 21,60,336/-. Aggrieved, the assessee filed further appeal before the CIT(A). There was a delay 371 days in filing the appeal before the CIT(A). The CIT(A) dismissed the appeal in limine without condoning the delay. The assessee is in appeal before the Tribunal against the order of the CIT(A).

We have heard the parties, and perused the material available on record. The Ld. Authorized Representative (AR) of the assessee submitted that the assessee is a vegetable vendor and is not well versed with income tax matters and completely dependent on the tax consultant who did not handle matter properly and hence the delay. The Ld. AR accordingly prayed that one more opportunity may be given. Considering the facts and circumstances peculiar to assessee's case and in the interest of natural justice, we are inclined to give one more opportunity to the assessee to substantiate the claim by producing the required details. Accordingly, we condone the delay in filing the appeal before the CIT(A) and remit the appeal back to the AO with a direction to call for necessary details and decide the issue in accordance with

Further, we also levy a cost of Rs.10,000/- (Ten thousand only) in the appeal since considerable time and efforts have been spent by the Exchequer and for the reason that the assessee being delinquent before the lower authorities. The same shall be paid by the assessee to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within a period of one month from the date of receipt of this order and produce the receipt before the AO.

In view of our decision with regard to the quantum of addition, we are remitting the appeals arising out of the penalty orders also back to the A.O to be decided afresh along with the issue pertaining to addition made in the order passed u/s. 147 of the Act.

In the result, all the four appeals of the assessee are allowed for statistical purposes.