INDRAPRAKASH KAILASHCHANDRA DHOOT,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX, MUMBAI

At the outset, the Registry has pointed out that there is a delay of 66 days in filing this appeal for which the assessee has filed an affidavit for condonation of delay. After perusing the facts placed on record, we find that there was reasonable cause for the delay in filing the present appeal

Briefly, the facts of the case are that the assessee filed the return of income for the Assessment Year 2017-18 on 31.03.2018 declaring total income of Rs. 28,60.070/-. The return was processed under section 143(1) of the Income-tax Act, 1961 and was subsequently selected for scrutiny under CASS, notices under sections 143(2) and 142(1) were issued from time to time and the assessment was completed by the Assessing Officer under section 143(3) vide order dated 24.12.2019 assessing the total income at Rs. 81,87,256/- wherein the Assessing Officer made an addition of Rs. 17,75,000/- under section 69A treating cash deposits as unexplained money, disallowed expenses of Rs. 1,86,815/- claimed against salary income, and further disallowed exemption of Rs. 33,65,375/- claimed under section 54 of the Act in respect of long-term capital gains. Consequent to these additions and disallowances, the total income was recomputed and demand was raised. Against the assessment order, the assessee preferred an appeal before the ld. CIT(A), who has dismissed the appeal on account of non- prosecution. Against the said order, the assessee is in appeal before us.

During the course of hearing, the ld. AR submitted that the assessee could not respond to the notices issued by the ld. CIT(A) on account of bereavement in the family, namely the demise of his father, and the distress that followed. It was submitted that the assessee could not file submissions or evidence before the ld. CIT(A) for these reasons and not out of any malafide intention to avoid the proceedings. It was pointed out that the assessee had filed the bank statements and the details of cash withdrawals and deposits before the Assessing Officer. It was submitted that the additions are substantial: Rs. 17,75,000/- under section 69A, Rs. 1,86,815/- on account of salary expenses, and Rs. 33,65,375/- on account of exemption under section 54 of the Act. He submitted that the

The ld. DR, on the other hand, relied on the orders of the lower authorities, at the same time, did not raise any specific objection where the matter is set-aside for examination on merits of the case.

We have heard the rival submissions and perused the material available on record. Admittedly, the matter has been decided ex-parte qua the assessee without adjudicating on the merits of the case and considering the limited prayer on behalf of the assessee, we believe that the assessee deserve one more opportunity and the matter is set-aside to the file of the ld CIT(A) to decide the same on merits in accordance with law after providing reasonable opportunity to the assessee.

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