Rakeshkumar Shamalbhai Sharma Vs ITO (ITAT Ahmedabad)
Conclusion: Matter regarding addition of Rs. 21.98 Lakhs as an unexplained deposit under section 69A was remanded back to the file of AO as assessee had not given the explanation as to why assessee did not appear before AO and file the details of source of the deposits within the stipulated time.
Held: Assessee filed his return for AY 2012-13 showing an income of Rs. 1,60,050/-. After processing the return under section 143(1), an e-notice under section 148 was issued. AO noticed a cash deposit of Rs. 21,98,124/- in the bank account and observed that assessee did not file the return in response to the notice. Despite several notices under section 142(1), assessee did not provide evidence for the deposit’s source, leading AO to add Rs. 21,98,124/- under section 69 as unexplained. Assessee filed an appeal before the CIT(A) against the assessment order, but CIT(A) dismissed the appeal. Assessee’s counsel explained that the appeal was delayed by 389 days, and an affidavit was submitted which showed that assessee had asked a relative to file the return, but the relative changed the password for the Income Tax account without informing the Chartered Accountant. This led to assessee not receiving the notices and being unaware of them, causing the delay in filing the appeal. Therefore, assessee could not appear before CIT(A) as well as assessee could not file the appeal in stipulated time before ITAT. Since the reason for the delay seemed genuine, it was condoned. It was held that assessee had not given the explanation as to why assessee did not appear before AO and file the details of source of the deposits within the stipulated time. Assessee had also not filed the return in response to the notice issued u/s.148. Therefore, it would be appropriate to direct assessee to deposit a cost of Rs.5,000/- which was to be deposited in the Prime Minister’s National Relief Fund within a period of two weeks from the receipt of this order. Thus, the matter was remanded back to the file of AO for proper verification and adjudication of the issues as per the Income Tax Statute. Needless to say, assessee be given proper opportunity of hearing in the interest of natural justice. It was further directed that the assessee would take utmost care, who appear before AO and fully co-operate with the assessment proceedings. Otherwise, AO was at liberty to take appropriate action and adjudicate the matter as per law.
