Shri Manchala Satyanarayana Naidu Vs ITO (ITAT Hyderabad)
Relevant Facts: The assessee was a 75-year-old agriculturist who had, for the first time, been subjected to income-tax proceedings. The assessment for AY 2017-18 was completed ex parte u/s 144 on 24 December 2019.
During the relevant financial year, the assessee had deposited cash aggregating to ₹11,86,500 in bank accounts maintained with Corporation Bank & A.P. Mahesh Co-operative Urban Bank Ltd. In the absence of an explanation accepted by the AO, the deposits were treated as unexplained money u/s 69A.
The assessee’s appeal before the CIT(A) was also dismissed for non-prosecution. The CIT(A) did not adjudicate the dispute on merits. When the assessee eventually approached the Tribunal, the appeal was delayed by 511 days.
Apart from challenging the addition & the ex parte disposal, the assessee raised an additional legal ground questioning whether the enhanced rate of 60% u/s 115BBE could be imposed in respect of transactions occurring before 1 April 2017, particularly deposits made during the demonetisation period.
The Tribunal admitted the additional ground because it involved a pure question of law that could be adjudicated from the existing record without investigating new facts. Reliance was placed upon National Thermal Power Co. Ltd. v. CIT, which permits consideration of such legal grounds at the appellate stage.
