VEERAPPAN ANANTHAN,SALEM vs. ASSESSING OFFICER, SALEM

The assessee is an individual and is a proprietor of M/s. Vetri Agro Centre and filed the return of income for A.Y 2020-21 declaring a gross turnover of Rs. 3,51,62,431/-. The A.O received an information that the assessee has deposited cash of Rs. 5,33,71,800/-. The A.O estimated the net profit at 8% to make an addition of Rs. 37,45,642/- for the reason that the assessee did not respond to the notices. Aggrieved, the assessee filed further appeal before the CIT(A). There was a delay of 112 days in filing the appeal before the CIT(A). The CIT(A) did not accept the submissions of the assessee with regard to the reasons for condoning the delay and accordingly dismissed the appeal in limine. The assessee is in appeal before the Tribunal against the order of the CIT(A).

We have heard the parties, and perused the material available on record. The Ld. Authorized Representative (AR) of the assessee submitted that the assessee is not well versed with use of computers and electronic mode. The Ld. AR further submitted that due to lack of technical knowledge, the assessee was not able to access emails on income tax portals and hence did not respond to the notices of the lower authorities. The Ld. AR also submitted that the assessee was completely dependent on the tax consultant and due to tax consultant's negligence the assessee did not know the status of assessment as well as the appellate proceedings. The Ld. AR submitted that the assessee filed the appeal before the CIT(A) immediately on advice of the new auditor and therefore, the delay was beyond the control of the assessee and not a wilful or deliberate delay. Considering the facts and circumstances unique to the present case, we are of the considered view that there is a reasonable cause for the delay in filing the appeal before the CIT(A) and therefore, we direct the CIT(A) to condone the delay. From the perusal of the order of the A.O, we notice that the A.O has made the addition on the ground that the assessee has not responded to the notices calling for documentary evidences explaining the source for cash withdrawals. Since, the lower authorities have made the additions without going into the merits, we remit the appeal back to the AO for consideration on merits by calling for relevant Veerappan Ananthan :- 3 -: details in order to decide the issue in accordance with law. The assessee is directed to file necessary details as may be called for and cooperate with assessment proceedings. It is ordered accordingly.