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Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE
Before: SHRI R.S. SYAL & SHRI PARTHA SARATHI CHAUDHURY
आदेश / ORDER PER R.S.SYAL, VP : This appeal by the assessee is directed against the order passed by the CIT(A)-2, Aurangabad on 28-08-2013 in relation to the assessment year 2005-06.
This appeal is time-barred by 1979 days. The assessee has filed affidavit in support of condonation of delay. We have gone through the contents of the affidavit as per which the assessee, a 12th pass from a village in District Aurangabad joined Indian Army
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in 1983 in the cadre of Other Ranks in corps of EME and served
till 1991. On his voluntary retirement, he came back to his village.
For sustenance of his family and in order to supplement his
income, he started doing odd jobs and other petty contracts like
supply of metal stone, murum and sand etc. Gradually, the
assessee started getting work contracts in his own name. When his
business activity grew, he engaged a firm of Chartered
Accountants in Aurangabad who started filing his return from
2003-04 onwards. It has been stated that whenever he would get
some letter or document from Income-tax Department, he was
handing over the same to his Chartered Accountant who, in turn,
was assuring that the same would be taken care of. It was only
later on when the tax demand of Rs.6,84,000/- was raised in the
best judgment assessment order framed in 2008 because of the
Chartered Accountant not attending the office of the AO, that the
assessee realized the gravity of the problem. On further probing, it
transpired that the Chartered Accountant appointed by the assessee
had not participated in the assessment proceedings for the year
under consideration as a result of which the assessment order was
passed u/s.144 of the Act determining the total income at
Rs.13,50,500/-, being, the amount deposited in the Savings bank
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account. When an appeal was filed against the assessment order
passed u/s.144, the ld. CIT(A) called for the remand report from
the AO. The assessee’s Chartered Accountant again did not appear
in the remand proceedings as well, which led to the dismissal of
the appeal. In view of the above narrated facts, it is amply clear
that the assessee, an Ex-serviceman and under-graduate belonging
to the family of farmers, who relied on his Chartered Accountant
for income-tax matters was betrayed, not only during the course of
assessment proceedings which led to the passing of the ex parte
assessment order but also during the course of the first appellate
proceedings, in which the Chartered Accountant of the assessee did
not participate in the remand proceedings. In our considered
opinion, the assessee has successfully justified the long delay in
presenting the appeal before the Tribunal. As such, the delay is
condoned and the appeal is admitted for hearing.
On merits, it is seen that the assessment order was passed
u/s.144 of the Act in which total cash deposited in the bank
amounting to Rs.13,50,500/- was treated as unexplained and
charged to tax. Income-tax on such amount along with interest
stood computed at Rs.6,84,900/-. Though the appeal was filed
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before the ld. CIT(A), the assessee again remained unrepresented
before the AO during the remand proceedings, a report of which
was sought by the ld. CIT(A). As such, the appeal came to be
dismissed. In the given facts and circumstances, we are of the
considered opinion that the ends of justice would meet adequately
if the impugned order is set-aside and the matter is restored to the
file of AO. We order accordingly and direct him to frame the
assessment afresh as per law after allowing a reasonable
opportunity of hearing to the assessee. The ld. AR has undertaken
that the assessee will extend full co-operation to the AO if his
prayer for second innings is accepted.
In the result, the appeal is allowed for statistical purposes. Order pronounced in the Open Court on 29th April, 2019.
Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; �दनांक Dated : 29th April, 2019 सतीश
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आदेश क� आदेश क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत/Copy of the Order is forwarded to: आदेश आदेश क� क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत अपीलाथ� / The Appellant; 1. ��यथ� / The Respondent; 2. 3. The CIT(A)-2, Aurangabad 4. The Pr.CIT-2,Aurangabad िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, पुणे 5. “SMC” / DR ‘SMC’, ITAT, Pune; गाड� फाईल / Guard file. / True copy // 6.
आदेशानुसार आदेशानुसार/ BY ORDER, आदेशानुसार आदेशानुसार
// True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune
Date 1. Draft dictated on 29-04-2019 Sr.PS 2. Draft placed before author 29-04-2019 Sr.PS 3. Draft proposed & placed JM before the second member 4. Draft discussed/approved JM by Second Member. 5. Approved Draft comes to Sr.PS the Sr.PS/PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *