ASHA ANAND,BENGALURU vs. ASSESSING OFFICER, WARD 6(3)(1), BENGALURU

At the outset we note that there is a delay of 114 days in filing the present appeal before the Tribunal. The assessee has filed an affidavit stating that the order of the CIT(A) was received through email but could not be noticed due to severe health issues. It is further stated

The assessment in this case was completed under section 147 read with section 144 of the Income Tax Act, 1961. The Assessing Officer made an addition of ₹22,99,000 on account of cash deposits in the bank account, treating the same as unexplained income due to lack of supporting evidence. The ld. CIT(A) confirmed the addition on the ground that the assessee failed to furnish sufficient documentary evidence to prove the source of the cash deposits.

Being aggrieved by the order of ld. CIT-A, the assessee is in appeal before us.

The learned Authorised Representative submitted that the assessment was completed ex-parte, without proper opportunity. The assessee was suffering from serious health issues, due to which she could not respond effectively to notices. The assessee could not file necessary documents before the Assessing Officer as well as before the CIT(A). As such, the addition was made without considering complete facts and supporting evidence. The assessee now has relevant documents to explain the source of the cash deposits. Therefore, one

On the other hand, the learned Departmental Representative submitted that the assessee was given sufficient opportunities during the assessment proceedings. The assessee failed to comply with notices and did not furnish required evidence. Even before the CIT(A), proper documentary evidence was not filed. Therefore, the Assessing Officer and the CIT(A) have rightly made and confirmed the addition. The order of the CIT(A) should be upheld.

We have heard both the parties and perused the materials available on record. It is observed that the assessment was completed under section 144 due to non-compliance. The addition was made mainly due to lack of supporting evidence. The assessee claims that due to health issues, she could not properly present her case earlier. The assessee has now requested for an opportunity to submit complete details and evidence. Considering the facts and circumstances of the case, and in the interest of natural justice, we are of the view that the assessee should be given one more opportunity to substantiate her claim. Accordingly, the order of the CIT(A) and AO is set aside. The matter is restored to the file of the Assessing Officer for fresh adjudication as per law. The Assessing Officer shall provide reasonable opportunity to the assessee and decide the issue afresh after considering all evidence. The assessee is also directed to fully cooperate and file all necessary documents without delay. Hence, the ground of appeal of the assessee is allowed for statistical purposes.

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