Bachan Kaur Vs ITO (ITAT Chandigarh)
In the case of Bachan Kaur Vs ITO, the ITAT Chandigarh addressed an appeal regarding an ex-parte addition of ₹29.5 lakh made to the income of the assessee for the assessment year 2010-11. The case was reopened based on AIR information indicating significant cash deposits in the assessee’s bank account at the State Bank of India, Pehowa. Subsequently, notices were issued under Section 142(1) of the Income Tax Act, 1961, but the assessee failed to respond due to her illness and the recent death of her husband. Consequently, the Assessing Officer issued an ex-parte order under Section 144, treating the deposits as income from undisclosed sources and adding the amount to the total income.
The assessee appealed against this assessment order, asserting that her failure to comply was due to her health issues and personal circumstances. Despite these claims, the CIT(A) confirmed the addition based on the available records. During the hearing before the ITAT, no one represented the assessee, but the Ld. DR noted that both lower authority orders were issued ex-parte. After reviewing the circumstances, the ITAT recognized the challenges faced by the assessee and decided to set aside the impugned order. The case was remanded back to the CIT(A) for a fresh hearing, providing the assessee an opportunity to present her case. The ITAT directed the assessee to cooperate with the department and indicated that the case would be revisited based on the merits of her submissions.
