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Facts
The assessee, a wholesaler of broiler chicken, failed to respond to notices issued during a scrutiny assessment due to his age and lack of online process knowledge. This led to additions under sections 69A and 68 of the Act for unexplained cash deposits and sundry creditors.
Held
The Tribunal condoned the delay in filing the appeal and decided to grant one more opportunity to the assessee. The order of the Ld.CIT(A) was set aside, and the issue was remitted back to the Ld.CIT(A) for fresh adjudication.
Key Issues
Whether the assessee should be granted a further opportunity to explain the additions made due to non-response to notices and lack of knowledge of online proceedings.
Sections Cited
142(1), 143(3), 69A, 68
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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 13/09/2024 in respect of the A.Y. 2017-18.
The assessee filed this appeal with a delay of 107 days for which he enclosed an affidavit explaining the said delay. In the affidavit, the assessee submitted that because of his age as well as his business background, he was not able to follow up the income tax proceedings in the online mode and submitted that he came to know about the order only when the bank
We have perused the delay condonation affidavit and the assessment order and to render substantial justice, we are condoning the said delay of 107 days so that the appeal could be taken up for further hearing.
The brief facts of the case are that the assessee is an individual and a wholesaler of broiler chicken in the name and style of M/s. M.N. Broilers. The case was selected for complete scrutiny because there were huge cash deposits during the year. Notices were issued u/s. 142(1) on 08/07/2019 and 11/11/2019 but the assessee had not responded to the said notices. The AO obtained the bank statements from the banks and based on the said entries, a show cause notice was issued. Later, some details were furnished and based on the said explanation, the assessment has been completed u/s. 143(3) of the Act. In the said order, the AO had treated the cash deposits for which proper explanation has not been offered as unexplained money u/s. 69A of the Act. The AO also made the sundry creditors as unexplained credit u/s. 68 of the Act since the assessee had not furnished the details of the sundry creditors along with the bank statements for having credited in their books.
The assessee challenged the said order of the AO before the Ld.CIT(A). The assessee raised several grounds of merits. But unfortunately, the assessee had not responded to the 8 notices issued on various dates and therefore the Ld.CIT(A) had decided the issue based on the documents available with him and confirmed the additions made u/s. 69A and 68 of the Act. As against the said order, the assessee is in appeal before this Tribunal.
At the time of hearing, the Ld.AR submitted that the assessee is in the business of broiler chicken and has no knowledge to follow the appeal
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 also considered the business activities carried on by the assessee and his knowledge in following up of the appeal through online and satisfied ourselves that there are valid reasons for not appearing before the Ld.CIT(A). Further, the additions were made u/s. 69A and 68 of the Act only on the ground that the assessee had not submitted any explanations. In such circumstances, we are of the view that one more opportunity may be granted to the assessee to place his submissions before the Ld.CIT(A).
We, therefore, set aside the order of the Ld.CIT(A) and remit the issue to the file of the Ld.CIT(A) to decide the issue on merits and in accordance with law after considering the explanations offered by the assessee in respect of the additions made u/s. 69A and 68 of the Act.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 27th May, 2025.