AJAY CHATURVEDI,INDORE vs. ASSESSMENT UNIT- INCOME TAX DEPARTMENT BPL-C-(61)(1), MADHYA PRADESH

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ITA 30/IND/2024Status: HeardITAT Indore09 May 2024AY 2015-16Bench: SHRI VIJAY PAL RAO (Judicial Member), SHRI B.M. BIYANI (Accountant Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, considering the assessee's serious medical condition which prevented compliance, decided to grant an opportunity for a fresh assessment. The matter was restored to the AO to allow the assessee to make representations and provide necessary documents.

What were the facts?

The Assessing Officer (AO) initiated reassessment proceedings under Section 147 as the assessee had not filed a return for AY 2015-16 and information regarding financial transactions was received. The assessee failed to comply with notices from both the AO and the CIT(A), leading to the dismissal of the appeal by the CIT(A).

What were the issues?

Whether the assessee should be granted an opportunity to present their case before the AO due to extenuating medical circumstances, despite prior non-compliance.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 142(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI VIJAY PAL RAO & SHRI B.M. BIYANI

For Appellant: Shri S.S. Deshpande, CA & AR
For Respondent: Shri Ashish Porwal, Sr. DR
Hearing: 08.05.2024Pronounced: 09.05.2024

आदेश / O R D E R

Per B.M. Biyani, A.M.:

1.

Feeling aggrieved by appeal-order dated 29.11.2023 passed by learned Commissioner of Income-Tax (Appeals), NFAC, Delhi [“CIT(A)”], which in turn arises out of assessment-order dated 09.03.2023 passed by Assessment Unit of Income tax Department [“AO”] u/s 147 read with section 144 of Income-tax Act, 1961, the assessee has filed this appeal.

2.

The background facts leading to present appeal are such that the AO, on receipt of information by Income-tax Department regarding certain

Shri Ajay Chaturvedi, Indore. AY 2015-16 financial transactions done by assessee and also on finding that the assessee had not filed return of income of AY 2015-16, undertook case u/s 147 by issuing notice dated 31.03.2022 u/s 148. Thereafter, the AO issued various notices u/s 142(1)/144. But majority of the notices remained un- complied with by assessee. Ultimately, the AO passed assessment-order u/s 147 read with section 144 determining total income at Rs. 74,15,539/-.

Aggrieved, the assessee carried matter in first-appeal whereupon the CIT(A) fixed certain hearings which again remained un-complied with by assessee.

Therefore, the CIT(A) dismissed assessee’s first-appeal for non-prosecution.

Now, the assessee has come in next appeal before us assailing the orders of lower-authorities.

3.

Ld. AR for assessee submitted that the assessee could not respond to the notices issued by AO and CIT(A) because he had been suffering from a serious disease of liver. The copies of various medical prescriptions and reports of Nanavati Hospital, Mumbai, are filed at page nos. 21-31 of the paper-book. Therefore, in the interest of justice, an opportunity should be given to the assessee to make representation before AO. Ld. AR submitted that despite his health issue, the assessee would extend full co-operation to AO and submit the details/documents as required. Accordingly, Ld. AR prays for remanding this matter to AO. Ld. DR for Revenue fairly agreed to the request made by Ld. AR.

4.

In view of the consensus of both sides and considering the difficult circumstances of assessee, we are persuaded to accept that an opportunity

Shri Ajay Chaturvedi, Indore. AY 2015-16 must be given to assessee in the interest of justice. This would also enable the AO to assess income properly in accordance with the provisions of law after due consideration of assessee’s representation. Therefore, we are restoring this matter to the file of AO for assessment afresh after hearing assessee and after considering assessee’s submission. The assessee is also directed to make adequate representation before AO and extend full co- operation. Ordered accordingly.

5.

Resultantly, this appeal is allowed for statistical purposes.

Order pronounced in open court on 09.05.2024

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