Genius Money Changer Vs ITO (ITAT Delhi)
Late Return Filed after Sec 142(1) Notice Held Invalid; No 143(2) Notice Required When Return is Invalid; ITAT Restores Sec 69A Addition to AO
The Tribunal ruled that a belated return filed beyond the statutory timeline in response to Section 142(1) is invalid, justifying best judgment assessment under Section 144. ITAT clarified that when a return filed is invalid under law, there is no requirement for notice under Section 143(2). The best judgment assessment under Section 144 was upheld, while addition of ₹52.34 under Section 69A was sent back to AO for fresh adjudication.
The Income Tax Appellate Tribunal (ITAT), Delhi Bench, has largely upheld a best judgment assessment against Genius Money Changer for the assessment year 2017-18. While affirming the procedural validity of the assessment framed under Section 144 of the Income Tax Act, 1961, the Tribunal has remitted the specific addition of unexplained money back to the Assessing Officer (AO) for a fresh factual examination. The case highlights the consequences of non-compliance with statutory deadlines and notices under the Income Tax Act.
Background of the Case Genius Money Changer, a partnership firm engaged in the money exchange business, failed to file its return of income within the time limit prescribed under Section 139(1) of the Income Tax Act for the assessment year 2017-18. Consequently, the Assessing Officer issued a notice under Section 142(1) on January 24, 2018, requesting the firm to file its return. This notice also went unheeded.
