ANGAMUTHU VEERARAGHAVAN,TRICHY vs. ITO, WARD-2(1), TRICHY

The assessee is an individual and did not file the return of income. The Assessing Officer (AO) received information that the assessee has deposited cash to the tune of Rs.64,20,000/- and has made credit card payment of Rs.2,35,246. The AO initiated the assessment proceedings and passed an Angamuthu Veeraraghavan :- 2 -:

order under section 148A(d) stating that since the assessee did not file any details explaining the source for the above transactions it is a fit case for reopening under section 147. The AO issued a notice under section 148 requiring the assessee to furnish relevant details. Since the assessee did not respond to the notices and filed only partial details the AO treated the amount deposited into the bank as unexplained cash credit under section 69A of the act and treated the credit card payments as unexplained expenditure under section 69C of the act. The AO also made an addition towards interest income. Aggrieved, the assessee filed further appeal before the CIT(A). There was a delay of 200 days in filing the appeal before the CIT(A). The CIT(A) did not condone the delay and dismissed the appeal in limine. The assessee is in appeal before the tribunal against the order of the CIT(A).

We heard the parties and perused the material on record. The Ld. AR submitted that the assessee is a commission agent and does not have any technical knowledge to access computers. The Ld. AR further submitted that the assessee therefore is completely dependent on counsel with regard to income tax matters who did not handle assessee's case properly. The Ld. AR accordingly, prayed that the assessee be given one more opportunity. Considering the facts and circumstances unique to the assessee's case we are of the considered view that there is a reasonable cause for the delay in filing the appeal before the CIT(A). We therefore remit the appeal back to the CIT(A) with the direction to condone the delay and consider the appeal on merits as well as the legal contentions raised by the assessee with regard to notice under section148A(b) not being served on the assessee. The assessee is directed to file necessary documents in support of the impugned additions