NAZIR AHMAD BHAT,ANANTNAG vs. ITO, ANANTNAG
Facts
The assessee, a 67-year-old retired pension holder, deposited substantial cash and had credit entries in his bank account for AY 2011-12 and 2012-13 but did not file returns. Ex-parte assessments were made, and the CIT(A) further enhanced the income significantly. The assessee filed appeals belatedly by 369 days due to severe medical conditions, claiming he was bedridden and unable to provide evidence for the source of deposits (sale of agricultural land and business).
Held
The Tribunal condoned the delay in filing appeals due to the assessee's critical health condition. Recognizing that the CIT(A) enhanced income and the assessee was unable to furnish supporting documents due to medical indisposition, the Tribunal remanded both appeals to the Ld. First Appellate Authority for fresh adjudication on merits, providing the assessee a fair opportunity to be heard and submit all supporting documents.
Key Issues
Condonation of delay in filing appeals on medical grounds; Proper opportunity to assessee to explain sources of cash deposits and credit entries in bank accounts; Validity of ex-parte assessments and enhancement of income by CIT(A).
Sections Cited
Section 250, Section 144, Section 147, Section 133(6), Section 148, Section 142(1), Section 251(2), Section 282
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR
Before: SH. MANOJ KUMAR AGGARWAL & SH. UDAYAN DASGUPTA
Per Udayan Dasgupta, J.M.:
These two appeals are filed by the assessee against orders of the Ld. CIT (A) NFAC, passed u/s 250, both dated 20th January, 2024, which has emanated from the orders of the AO, Ward – 3(4) Anantanag, both passed ex-parte u/s 144/147 dated 30/11/2018 and 30/12/2019, respectively.
2 I.T.A. Nos. 273 & 274Asr/2025 Assessment Years: 2011-12 & 2012-13 2. Condonation of delay: It is pointed out by the registry that both these appeals
has been filed together, belatedly by 369 (three hundred sixty nine days) and the
assessee has filed an application (along with affidavit) praying for condonation of
delay in filing both the appeals, on medical grounds. It is sworn by the assessee that he
is about 67 ( sixty seven years old) and suffering from many illness and had to undergo
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
3 I.T.A. Nos. 273 & 274Asr/2025 Assessment Years: 2011-12 & 2012-13 and admit both the appeals to be heard on merits. (Even though no supporting medical
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
4 I.T.A. Nos. 273 & 274Asr/2025 Assessment Years: 2011-12 & 2012-13 total income for Asst year 2011-12 has been enhanced by Rs. 70.07 lakhs and for 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
5 I.T.A. Nos. 273 & 274Asr/2025 Assessment Years: 2011-12 & 2012-13 relating to sale of agricultural lands and other incidental documents of business, to
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
Sd/- Sd/- (Manoj Kumar Aggarwal) (Udayan Dasgupta) Accountant Member Judicial Member *GP/Sr.PS* Copy of the order forwarded to: (1) The Appellant: (2) The Respondent: (3) The CIT concerned (4) The Sr. DR, I.T.A.T True Copy By Order
