Pushpendra Singh Chouhan Vs ITO (ITAT Indore)
The appeal before the Tribunal arose from the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), dated 29.12.2013 for Assessment Year 2012–13. The assessee challenged the reassessment framed under Sections 144 read with 147 of the Income Tax Act, 1961, dated 30.11.2019, whereby cash deposits of Rs. 36,03,600 in his SBI savings account were treated as unexplained income. The assessee had originally filed a return declaring total income of Rs. 1,74,960, which was below the basic exemption limit. Based on AIR information regarding cash deposits of Rs. 36,06,600, the Assessing Officer initiated reassessment proceedings under Section 148. As there was no response to notices under Sections 148 and 142(1), the Assessing Officer completed the assessment ex parte under Section 144 and assessed total income at Rs. 36,03,600.
The appeal before the CIT(A) was dismissed in limine under Section 249(4)(b) on the ground that the assessee had not paid advance tax. Before the Tribunal, the assessee contended that Section 249(4)(b) was not applicable in reassessment proceedings and that no advance tax liability arose, particularly when income was claimed to be below the taxable limit and deposits were stated to be from agricultural income. The assessee also explained non-appearance before the Assessing Officer, stating that he resided in a rural village without computer or internet facilities, was not conversant with the income tax portal, and relied on a local tax practitioner. He submitted additional evidences including bank statements, cash flow summaries, agricultural land records, crop purchase receipts, family landholding details (approximately 45 acres), housing loan documents, and income tax return of his brother.
