REKHA JAGADEESH,BENGALURU vs. INCOME-TAX OFFICER, WARD-6(2)(4), BENGALURU

This appeal by assessee is directed against the order of ld. CIT(A) which has been filed against the ex-parte order of the ld. AO in which the cash deposits were treated as unexplained money and u/s 69A of the Income Tax Act, 1961 (in short “The Act”).

The brief facts of the case are that the assessee’s husband Shri Jagadeesh owned agricultural lands and through the same he received income and the same were deposited in the bank accounts of the assessee. In view of his ill health from May, 2018, he was immobilized and all the work such as cash deposit and everything was carried out by his wife namely the assessee herein. Previously they were residing in Yashwantpur, Bangalore upto February, 2014

We have heard the rival submissions and perused the affidavit filed on 23.4.2024 enclosing the medical records to show that the assessee was prevented from pursuing the appeal remedy in time. Further, the reasoning of the Assessee that she had shifted her residence and therefore she has not received the notices and order and therefore she was not able to respond to the notices and could not be able to file the appeal in time appears to be an acceptable one and therefore, the arguments made by the assessee about the delay is to be accepted. Moreover, the assessment is also an ex-parte order made u/s 144 of the Act and therefore, in the interest of justice, one more opportunity is to be granted to the assessee to appear before the jurisdictional AO and produce all the relevant details about the deposits made into the bank account. We therefore, set aside the order of ld. CIT(A) by condoning the delay in filing the appeal before him and remit the issue back to the file of ld. AO for considering the issue de-novo in detail and pass orders afresh in accordance with law after giving an opportunity of hearing to the assessee.