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Facts
The assessee, an agriculturist, did not file her Income Tax Return for AY 2011-12. A re-assessment was initiated under Section 148 due to a cash deposit of Rs. 18,43,950/- in her bank account, leading to an ex-parte addition. An appeal was filed with a significant delay of 1307 days due to the death of her son, who was managing her affairs, but was dismissed in limine by the CIT(A).
Held
The Tribunal condoned the delay in filing the appeal, recognizing the unfortunate circumstances. It set aside the re-assessment order (quantum appeal) and remanded the matter back to the Assessing Officer, directing a fresh hearing to allow the assessee an opportunity to present her case on merits. Consequently, the penalty appeal was also allowed, with a provision for the AO to initiate fresh penalty proceedings if warranted.
Key Issues
Validity of ex-parte re-assessment for undisclosed cash deposit; Condonation of delay in filing appeal due to appellant's son's demise; Justification of penalty proceedings.
Sections Cited
147, 144, 271(1)(c), 148
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Income Tax Appellate Tribunal, AHMEDABAD “SMC” BENCH
Before: DR. BRR KUMAR & SHRI T.R. SENTHIL KUMAR
आदेश/ORDER
PER TR SENTHIL KUMAR, JUDICIAL MEMBER:
These two appeals are filed by the assessee as against separate appellate orders dated 07-10-2025 and 28-08-2024 passed by Commissioner of Income Tax (Appeals), National Faceless Appeal Centre arising out of the re-assessment order passed u/s. 147 r.w.s 144 of the Act and penalty order u/s. 271(1)(c) of the Act relating to the assessment year 2011-12.
Brief facts of the cases, the assessee is an agriculturist and joint owner of ancestral agricultural lands. Since there was no & 1945/Ahd/2024 Vimlaben V. Brahmbhatt, A.Y. 2011-12 taxable income, the assessee has not filed her Return of Income. However, the assessment for the assessment year 2011-12, was reopened by issuing notice u/s. 148 of the Act on the ground that the assessee made cash deposit aggregating to Rs. 18,43,950/- with her Dena Bank account. The assessee neither filed the return nor participated in the hearing which has resulted in passing ex-parte re-assessment order making addition of Rs. 18,43,950/- as undisclosed income of the assessee. The assessee requested her son Jigneshbhai Vinodbhai Brahmbhatt to file further appeal. He also died due to cancer disease on 05-03-2020 which was resulted in a delay of 1307 days in filing appeal before the CIT(A). Though delay was explained in the statement of facts before CIT(A), the same was not considered and dismissed the appeal in limine by CIT(A). The ld. counsel submitted before us copy of sale deed dated 13- 09-2010 for Rs. 26,22,360/- which was the source of cash deposit in her bank account, as well as the death certificate of his son, relatives and thereby requested to give one more opportunity of hearing to the assessee to explain her case before Assessing Officer.
We have heard the rival contentions and perused the materials available on record. Since the assessee is an agriculturist by profession though not filed return of income now produced before us revenue records as well as bank statements. In the interest of natural justice, we deem it appropriate to set aside the matter back to the file of Jurisdictional Assessing Officer with a direction to give one more opportunity of hearing to the assessee and pass fresh order on merits of the case.
& 1945/Ahd/2024 Vimlaben V. Brahmbhatt, A.Y. 2011-12
In the result, the appeal being filed by the assessee is allowed for statistical purpose.
13 days in filing the appeal which is hereby condoned. This appeal is against the penalty levied by the Assessing Officer for assessment year 2011-12. Since the quantum appeal is already set aside to the Jurisdiction Assessing Officer, the penalty appeal is hereby allowed and it is open to the Assessing Officer to proceed with fresh penalty proceedings in accordance with provisions of law.