Syed Zubair Pasha Vs ITO (ITAT Hyderabad)
Syed Zubair Pasha filed an appeal with the ITAT Hyderabad against an order from the CIT(A)-NFAC Delhi, concerning Assessment Year 2017-18. The case stemmed from reassessment proceedings initiated under Section 147 of the Income Tax Act, focusing on unexplained cash deposits and property purchases. The taxpayer, involved in stone trading, failed to file a return due to unawareness of the newly implemented faceless assessment proceedings under Section 148. Despite this, he submitted a computation of income, treating cash deposits as business receipts and declaring presumptive income under Section 44AD. The Assessing Officer (AO) rejected this computation, adding the cash deposits and property purchases as unexplained credits and investments under Sections 68 and 69, respectively. The CIT(A) upheld the AO’s decision, citing the taxpayer’s failure to respond to multiple notices.
The ITAT acknowledged the taxpayer’s claim of unawareness regarding the faceless assessment proceedings. It noted that while the taxpayer did not file a formal return, he provided a computation of income and paid taxes based on that computation. The tribunal recognized that both the AO and CIT(A) orders were passed ex-parte due to the taxpayer’s absence. Considering the circumstances and to ensure justice, the ITAT decided to remand the matter back to the CIT(A). The CIT(A) was instructed to provide the taxpayer with another opportunity to present evidence and details to support his case. However, due to the taxpayer’s failure to comply with previous notices, the ITAT imposed a penalty of ₹2,000, directing the taxpayer to pay this amount to the Telangana State Legal Aid Authorities. The taxpayer was also warned against seeking further adjournments. The appeal was allowed for statistical purposes, with the intention of giving the taxpayer a chance to rectify the situation.
