MADHUBEN NAVNITBHAI LATHIYA,RAJKOT vs. INCOME TAX OFFICER, RAJKOT

Brief facts of the case that the assessee, an individual, filed her return of income declaring total income of Rs.2,50,040/-, which was processed accordingly. Subsequently, the case was selected for scrutiny, and notice under section 142(1) of the Income-tax Act, 1961, was issued. However, owing to non-compliance by the assessee, the Ld. Assessing Officer proceeded on the basis of the material available on record and observed that cash deposits amounting to Rs.2,20,134/- had been made during the relevant period, for which no explanation was furnished. Accordingly, the said amount was added to the total income of the assessee, determining the assessed income at Rs.4,70,174/-.

Aggrieved by the assessment order, the assessee preferred an appeal before the Ld. Commissioner of Income Tax (Appeals), with a delay of 202 days in filing the appeal. However, appeal of the assessee was dismissed without condoning the delay.

Still, aggrieved by the order of the Ld. CIT(A) assessee is in appeal before this tribunal.

During the course of hearing before us, the Ld. AR submitted that the there was delay of 1105 days in filing the present appeal, delay occurred due to the sudden and prolonged illness of the assessee's husband, Shri Navnitbhai Gokalbhai Lathiya, who required hospitalisation and major surgery. During the same period, the marriage of the assessee's daughter was also solemnised. It was submitted that, being responsible for managing the household and family affairs without adequate assistance, the assessee could not properly attend to her tax- related matters or coordinate with her tax consultant to furnish the requisite documents and file the appeal within the prescribed time. It was contended that the delay was neither deliberate nor wilful but arose from unavoidable medical emergencies and family obligations. The assessee also filed an affidavit explaining the circumstances leading to the delay and prayed for its condonation. The Ld. AR further submitted that both the assessment order and the order of the Ld. CIT(A) were passed ex parte, as the assessee could not effectively participate in the proceedings due to the aforesaid circumstances. Accordingly, it was prayed that the delay be condoned and the matter be restored to the file of the Assessing Officer for fresh adjudication after providing a reasonable opportunity of being heard to the assessee.

On the other hand, the Ld. DR did not raise any serious objection to the request for condonation of delay and submitted that the assessee should be directed to comply with the notices issued by the Assessing Officer and cooperate in the assessment proceedings.

We have heard the rival submissions and perused the material available on record. Considering the reasons explained by the assessee, the affidavit filed in support thereof, and the circumstances relating to the prolonged medical emergency in the family, we find that the delay in filing the appeal deserves to be condoned in the interest of substantial justice. Accordingly, the delay of 1,105 days in filing the appeal is condoned, and the appeal is admitted for adjudication on merits. We further note that the assessment proceedings as well as the appellate proceedings were concluded ex parte, and the assessee could not effectively represent her case before the authorities below. In the interest of justice and fair play, we deem it appropriate to restore the matter to the file of the Assessing Officer for fresh adjudication in accordance with law. The Assessing Officer is directed to examine the issue relating to the cash deposits of Rs.2,20,134/- afresh, after considering the explanation and supporting evidence furnished by the assessee and providing her a reasonable opportunity of being heard. The assessee is also directed to duly comply with the notices issued by the Assessing Officer and cooperate in the proceedings. In the event of any further non-compliance, the Assessing Officer shall be at liberty to proceed in accordance with law on the basis of the material available on record.

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