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Facts
The assessee's assessment under Section 153C/143(3) included an addition of interest income from a fixed deposit in Bhutan, which the assessee contended was not taxable under Bhutanese law. Penalties under Section 271(1)(c) were subsequently levied. The Ld. CIT(A) dismissed the appeals ex-parte for non-compliance, as the 79-year-old assessee was unaware of notices sent to an accountant's email via the ITBA portal.
Held
Considering the assessee's affidavit explaining the non-compliance due to age and lack of computer knowledge, and with no objection from the D.R., the tribunal restored all appeals to the Ld. CIT(A) for fresh adjudication. The assessee was granted liberty to raise additional grounds during the fresh proceedings.
Key Issues
Whether the CIT(A) was justified in dismissing appeals ex-parte due to non-compliance when the assessee lacked knowledge of e-notices, and the validity of penalties levied under Section 271(1)(c) on estimated income.
Sections Cited
153C, 143(3), 263, 271(1)(c), 274, 5(1)(c)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH: KOLKATA
Before: Shri Pradip Kumar Choubey&Shri Sanjay Awasthi]
ORDER / आदेश Per Pradip Kumar Choubey, JM:
All the appeals preferred by the assessee against the separate orders of Commissioner of Income Tax (Appeal)-21, Kolkata (hereinafter referred to as the Ld. CIT(A)] dated 22.10.2024 for AY 2007-08 to 2011-12 respectively. Since issues are to 2530/Kol/2024 Assessment Year: 2007-08 to 2011-12 Bajrang Lal Agarwal common in all the appeals hence taken up together for disposal. We shall take in as a lead case.
Brief facts of the case of the assessee are that the assessment of the assessee was completed u/s 153C/ 143(3) on 21.12.2015 when fixed deposit of Rs. 1,95,00,000/- in Bhutan had been duly considered by the AO. During the course of assessment, it was contended that according to Bhutan Income Tax Act, 2001 interest earned on fixed deposit by individual is not taxable income under personal income tax. Since no interest of FD is taxable, the assessee did not offer any income being interest on fixed deposit. The said assessment was set aside u/s 263 and in pursuant to the order passed u/s 263 interest on FD for Rs. 13,65,000/- had been added back on accrual basis. In penalty proceedings, it was submitted through e-mail that income accrues or arise in Section 5(1)(c ) referred to income accrues or arises not in India but outside in India. It was contended that no income has been concealed by the assessee in the return, however, the penalty proceedings u/s 271(1)( c) for Rs. 4,09,500/- has been levied.
Aggrieved by the said penalty order, the assessee preferred an appeal before the Ld. CIT(A) wherein the appeal of the assessee has been dismissed by the Ld. CIT(A) as there was no response on behalf of the assessee during the appellate proceedings.
Being aggrieved and dissatisfied the assessee preferred an appeal before us.
The Ld..R instead of arguing into the merit of the case has only prayed that as there was no concealment of income. The Ld. A.R has filed an affidavit that the assessee will co-operate if the appeal of the assessee be restored into the file of the Ld. CIT(A).
The D.R though supports the impugned order did not raise any objection in remitting the appeal of the assessee to the file of Ld. CIT(A).
Upon hearing the submission of the counsel of the respective parties, we have perused the order of Ld. CIT(A) in all the appeals and find that appeal of the assessee has been dismissed by the Ld. CIT(A) as there was non-compliance by the assessee before him The assessee has filed an affidavit which is as below: to 2530/Kol/2024 Assessment Year: 2007-08 to 2011-12 Bajrang Lal Agarwal 7. It is a fact all the appeals of the assessee have been dismissed on account of non- prosecution and assessee filed an Affidavit of undertaking that the assessee will co- operate in proceeding if the appeal of the assessee be restored into file of the Ld. CIT(A). Keeping in view, the order passed by the Ld. CIT(A), considering the affidavit filed by the assessee and for the interest of justice, we are inclined to restore all the appeals of the assessee before the Ld. CIT(A) with a direction to pass afresh order with a liberty to assessee to raise an additional ground as per law.
In the result, all the appeal filed by the assessee are allowed for statistical purposes.