K RAMACHANDRA REDDY,HYDERABAD vs. ITO., WARD-12(3), HYDERABAD

At the outset, learned AR submitted that the assessee is a senior citizen and a retired employee though originally did not file the return of income, but subsequently filed the same declaring an income of Rs. 4,27,070/- and his statement was recorded by the learned Assessing Officer, but due to not having any knowledge about income tax proceedings and also being misguided at the time of assessment, there was variations in his version which the learned Assessing Officer rejected without consideration and added a sum of Rs. 12,94,262/-. He further submitted that he could not conduct the first appellate proceedings due to his old age, sickness and also not getting any ready help from his authorized representative. Learned AR submitted that the assessee received his service terminal benefits, agricultural income etc., and given an opportunity, he is ready to prove the same. He, therefore, prayed to grant an opportunity in the interest of justice.

Though the learned DR vehemently oppose the request of the assessee, the facts remains that the impugned order is only an ex parte order.

Having regard to the facts and circumstances of the case, I am of the view that the plea advanced on behalf of the assessee does not appear to be suspicious, because the assessee does not stand to gain by allowing the appeal disposed-of ex parte. Further, the grievance ventilated on behalf of the assessee is that the statement of the assessee recorded by the learned Assessing Officer did not receive due consideration in the assessment proceedings. Further, now the assessee undertakes to co- operate with the authorities by taking diligent steps in determining his correct tax liability.

In these circumstances, I am of the considered opinion that the highest that would happen by affording an opportunity to the assessee to substantiate his claims by submitting the evidences is that a cause could be decided on merits. When the technicalities are pitted against the delivery of substantial justice, the former must give way to the later. With this view of the matter, keeping in view the age and health condition of the assessee, while setting aside the impugned order and restoring the appeal to the file of the learned jurisdictional Assessing Officer, I direct the assessee to co-operate with the learned Assessing Officer in getting the matter disposed of on merits, without seeking any adjournments and the learned Assessing Officer to take a fresh look at the matter, after affording a reasonable opportunity to the assessee of being heard.