Mahesh Prakash Bende Vs ITO (ITAT Mumbai)
The appeal before the ITAT Mumbai arose from an order passed by the Commissioner of Income Tax (Appeals) [CIT(A)], National Faceless Appeal Centre, for Assessment Year 2015–16. The matter originated from an assessment completed under section 147 read with sections 144 and 144B of the Income-tax Act, 1961, wherein the Assessing Officer (AO) made additions on account of undisclosed income and estimated profits due to non-filing of return and non-compliance with notices.
The assessee, an individual, had not filed a return of income despite information indicating receipt of contract receipts amounting to ₹4.09 crore and salary income of ₹18 lakh. Based on this, the AO initiated reassessment proceedings and issued notices under section 148 and section 142(1). As there was no compliance, and even the final opportunity under section 144 was not responded to, the AO completed the assessment on a best judgment basis. The AO estimated profit at 4.76% on contract receipts, resulting in an addition of ₹38.23 lakh, and added ₹18 lakh as salary income, computing total income at ₹56.23 lakh. Penalty proceedings were also initiated.
The assessee filed an appeal before the CIT(A) with a delay of 127 days. The delay was explained on grounds that the assessee was not well educated, lacked computer knowledge, relied on an accountant, and was unaware of the proceedings. It was also stated that the business had been closed, earlier professionals were not traceable, and the assessee became aware of the demand at a later stage. The assessee contended that the delay was neither deliberate nor intentional and requested condonation.
