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Facts
The appeal was filed by the assessee against the order of CIT(A), which upheld the addition made by the Assessing Officer under Section 69A for unexplained investment. The assessee faced delays in filing the appeal due to personal reasons (mother's illness). The assessment proceedings were characterized by non-compliance with notices.
Held
The Tribunal condoned the delay in filing the appeal on humanitarian grounds. However, considering the assessee's consistent non-compliance with notices during assessment and appellate proceedings, the Tribunal decided to set aside the lower authorities' orders.
Key Issues
Whether the addition made for unexplained investment under Section 69A is justified and whether the assessee should be granted an opportunity to present their case before the lower authority, despite previous non-compliance.
Sections Cited
139(1), 144, 69A, 148, 142(1)
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Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT
Before: DR. ARJUN LAL SAINI, AM. &
Assessment Year: (2013-14) (Hybrid Hearing) Hareshbhai Arjundas Gurbani Aaykar Bhawan, Vs. 109/110 City Aarced, Nr DSP Jamnagar Bunglow, Tin Batti, Jamnagar 361001 �थायीलेखासं./जीआइआरसं./PAN/GIR No.: BQSPG3832M (Appellant) (Respondent) Appellant by : Shri Suresh Tejwani, Ld. AR Respondent by : Shri Abhimanyu Singh Yadav , Ld. Sr. (DR) Date of Hearing : 03/03 /2025 Date of Pronouncement : 07/ 03/2025 आदेश / O R D E R PER DINESH MOHAN SINHA JM;
Captioned appeal filed by assessee pertaining to Assessment Year 2013- 14, is directed against order passed by Commissioner Of Income Tax (Appeal), vide order dated 15/05/2024, which in turn arises out of an order passed by the Assessing Officer dated 08/02/2021 u/s 139(1) of the Income Tax Act, 1961.
GROUNDS OF APPEALS:-
1. Addition Made On Account Of Unexplained Income Is Unjustifiable And Disallowance u/s 69A.
The registree of the Bench bring into our notice that the appeal is late by 36 days. That Ld AR of the assessee submitted. That the assessee has moved an application for condonation of delay in filing of the appeal along with an affidavit. That the main reason for delay in filing of an appeal that the mother of the assessee is suffering from Breast Cancer and under the observation of Doctors. The assessee was taking care of the mother in Hospital. Relevant document related to disease is placed on record. The Ld AR requested for the condonation of delay in filing of an appeal before the Tribunal. The Ld. DR has not objected the request for condition of delay made by the Ld.AR of the Assessee.
We have heard the both the Ld AR and Ld DR and peruse the application for condonation of delay. We find that the delay in filing the appeal by the assessee is neither intentional nor due to any deliberate action on the part of the assessee. The delay Cause due to having bonafide reason and circumstances beyond the control of the assessee. In the interest of Justice and equity we are of the view that delay in filing the appeal is hereby condoned and the appeal is to be heard on merit.
Facts Of The Case as recorded by The Ld CIT(A)
. That the assessee filed an appeal of the assessee. Order date 21.09.2021 before Ld CIT(A). That said appeal was disposed of with following observation.
“In view of above discussion and perusal of fact stated by Ld. A.O, it can be clarified that even after giving several opportunities during assessment proceeding as well as during appellate proceeding, appellant never turned up and did not made any reply to the notices, Thus assessee has neither offered this income for tax by filing ITR u/s 139 nor did he filed any Page | 2 return of his income in response to notice u/s 148. In absence any substantial documents, genuineness and creditworthiness of sources of cash transaction in appellant's bank account could not established.
In view of the above discussion and decisions cited by the assessing officer supported by argument, I opined that there is no infirmity or illegality in initiating proceedings and making addition of Rs.10,56,500/- is treated as unexplained investment of appellant within the meaning of section 69A of the Act.”
In the result, the appeal of the assessee is hereby dismissed. That the assessee field an appeal against the impugned order date 15.05.2024 before us.
During the course of hearing the Ld AR has submitted that the assessee could not comply with the direction of the notice issued by Ld CIT(A). That Ld AR further requested that an opportunity to explain the case before the lower Authority may kindly be granted. On the contrary the Ld DR has relied on the order of the lower authority. However Ld DR has not objected the request of the assessee.
We have heard both the representative of the party and perused all the material available on record before us. We note that before passing the order the Ld CIT(A) had issued three notice on 11.07.2022,16.10.2023,11.03.2024 all the three notice remain uncomplied with and the assessee has not responded. The Ld CIT(A) has observed in the order that no infirmity or illegally was found in the order of Ld AO and confirmed the action of the AO about the unexplained investment u/s 69A of the Act.
We further note that during the course of assessment proceedings the Ld AO has issued notices u/s 148 of the Act. No return filed by the assessee in response to notice. However, notice u/s 142(1) dated 05.02.2021, 19.02.2021 and show cause notice dated 09.09.2021 were issued to the assessee but the assessee did not complied with the notices and the assessment order was passed u/s 144 of the Act. Considering the above fact we observe that the assessee do have an irresponsible behavior in compliance to the notice issued by revenue Department. We therefore impose a cost of Rs. 5000/- on the assessee and the assessee was directed to be deposited with Prime Minister Relief Fund , within a period of 10 days from today. We are of the view that the request of the Ld AR asking for one opportunity to present the case before the lower authority to be accepted. We there for set-aside the order of the lower authority and the matter remit back to the file of Ld AO to frame an assessment order according to law after giving due opportunity to the assessee to submit his case.
In result the appeal of the assessee allowed for statical purpose.
Order pronounced in the open court on 07 / 03 /2025.
Sd/- Sd/- (Dr. A.L. SAINI) (DINESH MOHAN SINHA) ACCOUNT MEMBER JUDICAL MEMBER Rajkot �दनांक/ Date: 07 /03/2025