Pareshkumar Patil Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad held that AO and CIT(A) confirmed the addition since there was non-compliance on the part of the assessee. Thus, one more opportunity granted to the assessee to present its case however with a direction to deposit INR 2000 to the Prime Minister’s Relief Fund.
Facts- Notice was issued under section 148 of the Income Tax Act. However, assessee failed to respond to the same. AO observed that the assessee received a total sale consideration of Rs. 34,77,000/- from sale of property and made an investment of Rs. 19,50,000/- in the purchase of immovable property during the impugned assessment year. In the absence of any documentation from the assessee regarding these transactions, the sale consideration was added to the total income of the assessee as capital gains, while the investment was deemed unexplained and similarly added to the total income of the assessee by AO.
CIT(A) confirmed the addition. Being aggrieved, the present appeal is filed.
Conclusion- Held that on going to the Affidavit filed by the counsel for the assessee and other documents like sale and purchase deed in respect of the three properties under consideration and also the purchase deed for another property for a consideration of the 16.50 lakhs, copies of bank statement for the impugned year under consideration, we are of the considered view that in the interest of justice, one more opportunity may be given to the assessee to present its case on merits before the assessing officer. However, it is also observed from the facts placed on record that the assessee had been all throughout non-compliant and therefore, a nominal cost of Rs.2000/- is being imposed on the assessee for the purpose of setting aside his case to the file of assessing officer and the same is directed to be deposited to the Prime Minister’s Relief Fund.
