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Facts
The assessee, an elderly, retired and medically indisposed individual, deposited substantial cash into bank accounts across Assessment Years 2011-12 and 2012-13, but failed to file returns. Ex-parte assessments were completed by the AO, and subsequently, the CIT(A) further enhanced the income ex-parte due to non-response to SCNs u/s 251(2). The assessee claimed the deposits were from sales of agricultural land and business proceeds, but could not provide evidence due to illness.
Held
The Tribunal condoned the 369-day delay in filing appeals, accepting the assessee's medical grounds. Recognizing the assessee's inability to present evidence during lower appellate proceedings, the Tribunal remanded both appeals to the CIT(A) for fresh adjudication on merits. The assessee was directed to submit all supporting documents for the source of cash deposits and credit entries.
Key Issues
Condonation of delay in filing appeals; Validity of ex-parte assessment and subsequent enhancement by CIT(A); Opportunity to assessee to furnish evidence for cash deposits and credit entries in bank accounts.
Sections Cited
250, 144, 147, 133(6), 148, 142(1), 251(2), 282
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Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR
Before: SH. MANOJ KUMAR AGGARWAL & SH. UDAYAN DASGUPTA
multiple surgeries for which he was bed ridden for many months and though the order of the first appellate authority has been received by him in the month of January, 2024 , he could not contact his counsel for filing the appeal because of his illness, and subsequently , after somewhat recovering in the month of March, 2025, has managed to file both these appeals with the guidance of his CA Mr . Vaseem Ahmed, belatedly by 369 days, and since there was no willful or intentional default on his part, he prayed for condonation and for admitting the appeals to be heard on merits.
During the hearing before the tribunal, the Ld. AR of the assessee, (CA Vaseem Ahmed) present in virtual mode, submitted that the assessee is a retired person and a pension holder as reflected in his bank account, and the assessee has being under continuous medical treatment and has undergone multiple surgery and he is presently on ‘ death bed ”, and he prayed for admission of the appeal for hearing on merits.
Considering the submissions in the affidavit and the verbal statement of the counsel regarding the critical health condition of the assessee, we condone the delay documents has been filed by the counsel, we accept his verbal statement declared in court, at face value).
Brief facts emerging from records are that the assessee is a retired pension holder and on the basis of information (AIR / CIB information), that the assesee has deposited CASH amounting to Rs. 19.27 lakhs in his bank A/c with J & K Bank, Anantanag A/c No. xxxxxxxxx1022, plus credit entries of Rs. 70 lakhs in the same bank , for the Asst year 2011-12 , and an amount of cash being deposited for the Asst year 2012-13 totaling Rs.63.04 lakhs , coupled with the fact that no returns has been filed for any of the year, and there has been no response to various notices issued u/s 133(6) and in absence of any response to subsequent notices issued u/s 148 followed by notices u/s 142(1) of the Act, the assessment for both the years were completed respectively , on a total income of Rs. 22.13 lakhs for the asst year 2011-12 and on a total income of Rs. 15.70 lakhs for the Asst year 2012-13, (which also included the pension income and bank interest for respective years) both ex-parte u/s 144/ 147 of the Act 61.
Both the years carried in first appeal has been disposed of by the Ld. First appellate authority vide separate orders of even date 20th January, 2024, both passed exparte, after issue of SCN for enhancement, u/s 251(2) of the Act 61, whereby the assst year 2012-13 the same is enhanced by Rs. 50.43 lakhs.
Now the assessee is in appeal before the tribunal for both the years , on various grounds contained in the memo of appeal and in course of hearing the Ld AR submitted that the source of cash deposits in bank accounts are out of sale proceeds of immovable property ( agricultural lands ) and a part is out of sale proceeds of business of “ tonga carts and accessories ” and since the assessee was totally bed ridden , no evidence could be furnished before appellate authorities and submissions could not be filed in course of appellate proceedings and prayed for a proper opportunity of hearing for explaining his case for both the years.
The Ld DR has no objection.
We have considered the materials and heard the rival counsels and we find that the Ld CIT ( A ) has taken recourse to enhancement vide notice issued as per provisions of section 251(2) of the Act 61 for both the years due to reasons contained in the respective SCN , to which proper explanation with supporting documentary evidences are required from the assessee , and the assessee being medically indisposed could not comply with the same , and as such in the interest of justice we remand both the appeals to the Ld first appellate authority for fresh adjudication on merits of the case on all issues contained therein and we direct the assessee to file all supporting documents explain the source of cash deposited in bank and explain the credit entries as appearing in bank statement and to fully cooperate in appellate proceedings.
The assessee will be allowed fair and reasonable opportunity of being heard and notice to be issued u/s 282 of the Act and also in email id of the counsel ahmadcavaseem@gmail.com .
We have not expressed any opinion on merits and all issues are left open.
In the result, both the appeals of the assessee are allowed for statistical purposes.
Order pronounced in open court as on 19.12.2025