Ningaiah Siddu Vs DCIT (ITAT Bangalore)
In a recent order that underscores the importance of a lenient and pragmatic approach in tax litigation, the Income Tax Appellate Tribunal (ITAT) Bangalore has condoned a significant 349-day delay in a tax appeal filed by an assessee named Ningaiah Siddu. The case, Ningaiah Siddu vs. DCIT, highlights the challenges faced by individuals, particularly those with limited literacy and technical knowledge, in navigating the complexities of modern, faceless tax proceedings. The tribunal’s decision not only allows the appeal to be heard on its merits but also restores the case to the Assessing Officer (AO) for a fresh assessment, giving the assessee an opportunity to present his case properly.
The background of the case reveals that Ningaiah Siddu, an individual assessee, had filed his income tax return for the assessment year 2020-21, declaring a total income of Rs. 43.01 lakh. His main sources of income were bank interest and contract receipts. During the assessment, he had claimed a deduction of over Rs. 3.16 crore, which the Assessing Officer (AO) disallowed under Section 69C of the Income Tax Act, 1961, treating it as an unexplained expenditure. This led to a best-judgment assessment under Section 144, raising his total assessed income to approximately Rs. 3.59 crore. The core of the problem, however, began with the assessment proceedings. The AO issued several notices, but none were complied with, leading to an ex-parte order.
