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Facts
The assessee, a trader in vegetables, failed to file his return of income for AY 2015-16 due to incurring huge losses. The AO issued a notice under Section 148 for cash deposits into bank accounts, leading to a best judgment assessment under Section 147 read with Section 144. The assessee did not respond to notices due to lack of knowledge and being from a remote area.
Held
The Tribunal acknowledged the assessee's lack of education and technical knowledge, and the circumstances leading to non-appearance. The Tribunal set aside the orders of the lower authorities and remitted the issue to the AO for denovo consideration, granting an opportunity to the assessee to appear.
Key Issues
Whether the assessee should be granted an opportunity to appear before the AO for denovo assessment, considering his circumstances and lack of response to notices.
Sections Cited
147, 148, 144, 69A
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Income Tax Appellate Tribunal, ‘B’ BENCH : BANGALORE
Before: SHRI LAXMI PRASAD SAHU & SHRI SOUNDARARAJAN K.
ORDER PER SOUNDARARAJAN K., JUDICIAL MEMBER
This is an appeal filed by the assessee challenging the order of the NFAC, Delhi dated 17/07/2024 in respect of the A.Y. 2015-16.
The brief facts of the case are that the assessee is a trader in vegetables and having a mandi at Agricultural Produce Marketing Committee yard, Kolar. In respect of the A.Y. 2015-16, the assessee had not filed his return of income since he had incurred huge losses. The AO issued a notice u/s. 148 based on the cash deposits made into his bank accounts. The assessee being an agriculturist and also studied upto 9th Std., he has no knowledge about the notices issued through the e-proceedings and therefore he has not responded to the said notice and a best judgment assessment u/s. 147 r.w.s 144 was made by the AO in which the cash deposits made in the bank account was treated as unexplained income u/s. 69A of the Act. As against the said order, the assessee had managed to file the appeal before the Ld.CIT(A). The Ld.CIT(A) had dismissed the appeal on the ground that the assessee had not responded to the hearing notices and not filed any documents in support of his case.
As against the said order, the present appeal has been filed before this Tribunal.
At the time of hearing, the assessee filed a written submission explaining the reasons for the non-appearance before the AO as well as before the Ld.CIT(A) and prayed that an opportunity may be granted. The assessee also brought to the notice of this Tribunal that the assessee is from a remote area and also not having enough knowledge in the technical matters and also submitted that he has completed his studies only upto 9th Std and therefore prayed that an opportunity may be granted to appear before the Ld.CIT(A) and to produce the documents in support of his case.
The Ld.DR relied on the orders of the lower authorities and prayed to dismiss the appeal.
We have heard the arguments of both sides and perused the materials available on record.
We have considered with written submissions made by the assessee before us in which the assessee had explained the reasons for not appearing before the AO As well as before the Ld.CIT(A). It is not in dispute that the assessee is not well educated and also lacks in technical knowledge in operating the computers. Further, the assessee also submitted that he is an agriculturist and operated his tomato business in a remote area of Kolar and therefore the non-appearance and non-filing of written submissions before Ld.CIT(A) is not wilful and therefore prayed that an opportunity may be granted to appear before the AO. Admittedly, before the AO as well as before the Ld.CIT(A), the assessee had not appeared for the reason that the notices had not come into his knowledge.
Considering the above said facts and the circumstances as stated by the assessee, we are inclined to grant an opportunity to appear before the AO since the assessment also made u/s. 144 of the Act. We, therefore, set aside the orders of the lower authorities and remit this issue to the file of the AO for denovo consideration and the assessee is also directed to co-operate with the assessing officer in finalising the assessment at an early date. We also direct the assessee to furnish the source for the cash deposits made into his bank account at the time of assessment proceedings.
In the result, the appeal filed by the assessee is partly allowed for statistical purposes.
Order pronounced in the open court on 12th November, 2025.