BABAN MARUTI CHAVAN,BHARATI VIDYAPEETH PUNE vs. CIT(A) (NFAC), DELHI

This appeal filed by the assessee is directed against the order dated 24.01.2024 passed by Ld CIT(A)/NFAC for the assessment year 2016-17.

The appellant raised the following grounds of appeal :- “1. The Commissioner of Income Tax (Appeals) has made additions to the Interest Income amounting to Rs. 34,82,528/- and interest on Debentures totalling Rs. 86,846/-, categorizing them as unexplained money under Section 69A of the Income Tax Act, 1961 for the Assessment Year 2016-17. The failure of the assessee to substantiate the source of income has led to its 2 classification as unexplained. Consequently, penalty proceedings under Section 271 have been initiated

Being aggrieved, an appeal was filed before the ld. CIT(A)/NFAC, who vide impugned order confirmed the addition made by the Assessing Officer.

Being aggrieved by the decision of the ld. CIT(A)/NFAC, the appellant is in appeal before us.

The LD AR submitted before us that the appellant assessee is a senior citizen suffering from various ailments. In this regard, a paper book is furnished by the assessee containing an affidavit, documents with regard to medical treatment & documents with regard to source of investment in bank deposits etc. With the help of the chronology of events mentioned in the affidavit, Ld Counsel of the assessee demonstrated that when the notice u/s 142(1) was issued the assessee was suffering from Covid-19 infection & thereafter when show cause notice u/s 144 was issued the assessee had undergone angiography & then angioplasty was also performed & therefore was not in a position to respond to the statutory notices 4 ITA No.597/PUN/2024 issued by the department. It was further submitted that under the above facts & in the circumstances of the case the assessee could not participate in the assessment proceedings & therefore there was no mala-fide intention in not replying to the statutory notices issued by the AO, which resulted in ex-parte order u/s 147/144 of the IT Act. LD counsel of the assessee further pointed out before us that a detailed reply / submission was also furnished before LD CIT(A)/NFAC but unfortunately it was not accepted by LD CIT(A)/NFAC & the appeal was dismissed. It was also submitted before the bench that LD CIT(A)/NFAC was not correct in observing that the appellant purposely not complied with any of the notices issued between 23-03-2021 to 11-02-2022. In this regard, it is clarified by LD counsel of the assessee that there is an averment in the affidavit that since January 2021 the appellant assessee was suffering from heart problem, followed by Covid-19 & thereafter angioplasty in the month of December 2021, the assessee could not respond to any of the notices. Therefore LD CIT(A)/NFAC committed error in not accepting the contention of the assessee that due to bona-fide reasons the assessee was prevented from appearing on the dates of hearing & therefore Ld counsel of the assessee requested before the bench to set-a-side the order passed by the AO