Loading judgment…
Facts
The assessee, an elderly individual with medical issues, deposited Rs. 27.26 lakhs in his bank account in FY 2010-11, which the AO assessed as unexplained income of Rs. 30.64 lakhs. The CIT(A) dismissed the assessee's appeal due to non-compliance, leading to a delayed appeal to the ITAT.
Held
The Tribunal condoned the 157-day delay in filing the appeal, acknowledging the assessee's medical condition and issues with receiving notices. The case was remanded to the CIT(A) for fresh adjudication on merits, with directions to allow the assessee a full opportunity to present evidence regarding the source of the bank deposits.
Key Issues
Condonation of delay in filing appeal; Assessment of unexplained bank deposits and opportunity to explain the source (retirement benefits) before the appellate authority.
Sections Cited
Section 250(6) of the Income Tax Act, 1961, Section 143(3) of the Income Tax Act, 1961, Section 147 of the Income Tax Act, 1961, Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR
Before: SH. MANOJ KUMAR AGGARWAL & SH. UDAYAN DASGUPTA
This appeal is filed by the assessee against the order of ld. CIT (A) National Faceless Appeal Centre (NFAC), Delhi dated 02.05.2024 passed u/s 250(6) of the Income Tax Act, 1961 which has emanated from the order of the Income Tax Officer, Ward-3 (4), Anantnag dated 22.12.2018 passed u/s 143(3) r.w.s. 147 of the I. T. Act, 1961.
Application for condonation of delay has been filed along with an affidavit. The order of the Ld. CIT (A) is dated 2nd May, 2024, and due date of filing the appeal expired on 1st July, 2024, and the same has been filed on 5th December, 2024, belated by 157 days . It is stated that the assessee is seventy (70 years ) old and was under medical treatment at “ Khyeber Medical Institute “ Srinagar for cardiac treatment . It is further submitted that the assessee had lost one of his legs on account of a blast, resulting in physical challenges and has lost his free movement and has to depend on others.
The assessee has not received any appeal order by post and had to fully depend on his counsel for receipt of the order in his email, and he was never intimated in time by his counsel. Moreover, he also could not contact his counsel because of his illness. As such he prays for condonation of delay in filing this appeal and for admitting the same for decision on merits. The Ld DR has no objection considering his limitation on medical grounds. Considering the reasons stated we condone the delay and admit the appeal for adjudication on merits.
The brief facts emerging from records are that an amount of Rs. 27.26 lakhs has been deposited by the assessee in his bank account during FY 2010-11, and no return was filed. The explanation of the assessee that the same are from retirement bank fixed deposits , was not considered as a satisfactory explanation by the AO , resulting in an assessed income of Rs. 30.64 lakhs .
The matter carried in appeal before Ld. CIT (A) NFAC, was dismissed , by the appellate authority , in absence of any response or submissions ,to various notices issued in ITBA portal on four separate occasion .
The Ld AR of the assessee submitted that, no notice of hearing has been received by post and notice has also not been received through email as stated in form 35, and he has not been informed by the counsel either regarding any dates fixed for hearing.
He further stated that the entire deposit in bank account is explainable to have been made out of his retirement benefits and considering his old age and medical problems he prays for an opportunity to furnish all supporting papers to explain his case.
The Ld. DR relied on the order of the Ld. CIT (A).
We have heard the rival submissions and we find that J & K Bank has issued a certificate dated 13th December, 2018, that the assessee has invested in Cash Certificate on 08/01/2010 (which is relevant to Asst year 2010-11) and the same has year 2011-12 ) .
We are of the opinion that all relevant papers and documentary evidences relating to the source of deposits in bank account , claimed to have flown out of retirement benefits of the assessee , has not been examined in its right perspective by the lower authorities .
In the interest of justice we remand the matter to the Ld CIT (A), for adjudication on all the grounds contained in Form 35 on merits of the case, and we direct the assessee to file all evidences and submission to explain his case and to fully cooperate in appellate proceedings.
The assessee will be allowed reasonable opportunity of being heard.
We have not expressed any opinion on merits of the case and all contentions are left open.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in accordance with Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963 as on 21.05.2025.