Jayamma Vs ITO (ITAT Bangalore)
Illiterate Assessee’s Delay Deserves Sensitive Consideration: ITAT Restores Assessment and Tax Audit Penalty
An assessee’s inability to handle notices and electronic communication must be considered in the light of her circumstances. The Bengaluru ITAT applied this approach in Jayamma v. ITO, ITA Nos. 1267 and 1268/Bang/2026, for AY 2017–18. It held that the CIT(A) ought to have condoned the delay in the assessee’s appeal and restored both the assessment and the related Section 271B tax audit penalty to the Assessing Officer.
The order, pronounced on 29 September 2026, concerns a petrol bunk proprietor who had taken over the business after her husband’s death. She was stated to be 61 years old, illiterate, unwell and dependent on others to attend to tax correspondence. The Tribunal’s decision gives her an opportunity to explain the disputed transactions; it does not delete the assessment additions or the penalty on merits.
An Ex Parte Assessment Followed by a Delayed Appeal
The assessee filed her return declaring income of ₹4,99,870. Her case was selected for scrutiny. According to the Assessing Officer, a notice under Section 143(2) was served and seven further notices went unanswered. He therefore completed a best judgment assessment under Section 144 on 15 December 2019.
