Pachaiyappam Senthamarai Vs ITO (ITAT Chennai)
The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) decided an appeal filed by the assessee, Pachaiyappam Senthamarai, against the order of the National Faceless Appeal Centre (NFAC)/CIT(A) for the Assessment Year (A.Y.) 2012-13. The primary issue involved the addition of ₹15,01,000/- as unexplained cash credit under Section 68 of the Income Tax Act.
Condonation of Delay and Initial Proceedings
The appeal was filed with a significant delay of 150 days. The assessee, described as an individual involved in agricultural farming and illiterate, stated in his application for condonation that he did not understand the CIT(A)’s order or know that the appeal had to be filed within 60 days. After seeking help from a relative, an advocate, and a Chartered Accountant, the appeal was eventually filed. The Tribunal, noting the assessee’s stated lack of proper guidance, condoned the 150-day delay and admitted the appeal.
The initial assessment was initiated under Section 147 because the assessee, who had not filed a return of income, had made cash deposits totaling ₹15,01,000/- in his savings bank account. Despite receiving statutory notices, the assessee did not comply, leading the Assessing Officer (AO) to treat the entire amount as unexplained cash credit under Section 68 and pass an ex parte assessment order under Section 144 read with Section 143(3). The AO also initiated penalty proceedings under Section 271(1)(c) (concealment of income) and Section 271F (failure to furnish return of income).
