Chandra Bali Singh Vs ITO (ITAT Allahabad)
In the case of Chandra Bali Singh Vs ITO, the ITAT Allahabad disposed of two interconnected appeals for the assessment year 2009-10. The first appeal challenged the quantum addition of Rs. 1,108,130 made by the Assessing Officer (AO), which was based on cash deposits in the bank. The AO had passed an ex parte order due to the appellant’s failure to respond to notices under sections 148 and 142(1) of the Income Tax Act. The appellant claimed inadequate time to respond and argued that their submissions before the CIT(A) were not considered. The ITAT found that the appellant had not complied adequately with the authorities below and remanded the matter to the AO for a fresh assessment, providing the appellant a chance to present the case properly.
The second appeal dealt with the penalty imposed under Section 271(1)(c) for the quantum addition of Rs. 1,108,130. Since the matter was remanded for reconsideration of the quantum addition, the ITAT ruled that the penalty could not stand and quashed it. The ITAT allowed the appeal on technical grounds, giving the AO the opportunity to initiate new penalty proceedings if the quantum addition was upheld after reassessment. The ITAT’s decision was pronounced on December 4, 2024, in Allahabad, Uttar Pradesh.
