Case Law Details
Puran Singh Vs ITO (ITAT Chandigarh)
Introduction: In an appeal case involving Puran Singh and the Income Tax Officer (ITO), the Income Tax Appellate Tribunal (ITAT) Chandigarh has ordered a readjudication. The appellant failed to provide an explanation on certain cash deposits due to his unawareness of a notice served on his counsel’s e-mail ID and uploaded on the e-filing portal.
Analysis: The case concerns cash deposits made by the appellant in the financial year 2010-11, noticed during assessment proceedings initiated under section 147 of the Income Tax Act. The appellant was asked to provide an explanation and evidence for the source of these deposits. However, the appellant, a super senior citizen aged 81, was unaware of these notices, which were uploaded on the e-filing portal and sent to his previous counsel’s e-mail ID.
The CIT(A) confirmed the addition of a total sum of Rs.27,25,000/- to the income of the appellant under section 69A of the Act due to a lack of explanation on these deposits. The appellant contended that his non-appearance was unintentional and beyond his control, and sought for the delay in filing the appeal to be condoned.
After consideration, ITAT Chandigarh found the delay to be inadvertent and bonafide and condoned it, agreeing to decide the appeal on its merits. The Tribunal directed the file to be restored to the CIT(A) for fresh decision making after giving a reasonable opportunity of being heard to the appellant.
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