Savitramma Vs ITO (ITAT Bangalore)
Bangalore ITAT Grants Disabled Agriculturist Fresh Opportunity to Explain ₹14.07 Lakh Bank Deposits and Investments
The assessee, a woman suffering from more than 75% permanent locomotor disability, claimed that her family was engaged in agriculture and that cash receipts arose from the sale of tomatoes, mangoes and other agricultural produce through a registered APMC commission agent.
The assessee had not filed her return for AY 2020-21. Reassessment proceedings were initiated based on information regarding cash deposited in her bank account. The AO made the following additions:
- ₹4,50,000 as unexplained cash deposits under section 69A;
- ₹9,57,138 as unexplained investment in time deposits under section 69; and
- ₹40,269 as interest income.
The total income was accordingly assessed at ₹14,47,407. The CIT(A) dismissed the assessee’s appeal without examining the merits because it was filed with a delay of 113 days. The delay was explained as having arisen because her consultant misplaced the assessment papers, and she became aware of the lapse only upon receiving the demand notice.
The ITAT noted that the assessee had placed on record her disability certificate, RTCs and APMC sale bills. Considering her disability and the supporting evidence produced, the Tribunal held that, in the interest of justice, she deserved another opportunity to establish that the cash and time deposits originated from agricultural income.
