CHAIN SINGH,SANADIYA vs. INCOME TAX OFFICCER , INCOME TAX DEPRTMENT INDORE

Facts

The assessee, a farmer, faced a best judgment assessment u/s 144 of the Income Tax Act for AY 2012-13, with an income computed at Rs. 1,22,98,300, which he claimed was from the sale of agricultural land. His first appeal to the CIT(A) was dismissed due to non-appearance and a 146-day delay, which the assessee attributed to being a heart patient and unaware of portal proceedings. The assessee then filed a second appeal before the ITAT.

Held

The Tribunal observed that both the original assessment and the first appellate order did not examine the merits of the case due to the assessee's non-appearance and delay. Consequently, the Tribunal set aside the CIT(A)'s order and remanded the case back to the Assessing Officer for a *de novo* adjudication on merits, subject to the assessee depositing Rs. 5000 into the 'PM Relief Fund'. Both the quantum and penalty appeals were allowed for statistical purposes.

Key Issues

Legality of the assessment order passed u/s 144 without considering facts; non-condonation of delay in filing the first appeal to CIT(A) despite genuine reasons; and failure of both lower authorities to examine the merits of the case due to non-appearance.