Case Law Details
Rajendra Karbhari Bodake Vs ITO (ITAT Mumbai)
Introduction: In a recent case involving Rajendra Karbhari Bodake and the Income Tax Appellate Tribunal (ITAT) in Mumbai, the tribunal has underscored the seriousness of income tax proceedings. When the assessee failed to appear for hearings or respond to notices, ITAT imposed a cost of Rs. 2000 to instill an understanding of the gravity of such matters. This article delves into the detailed analysis of the case and what it means for taxpayers.
Background of the Case: Rajendra Karbhari Bodake was aggrieved by a decision that confirmed the addition of Rs. 96.71 lakhs to his income, related to unexplained bank deposits. This addition was made by the Assessing Officer under section 69A of the Income Tax Act for the assessment year 2017-18.
Non-Cooperation from the Assessee: Interestingly, the assessee did not appear before both the Assessing Officer and the CIT(A). Various notices issued by the Assessing Officer went unanswered. As a result, the case was decided ex-parte, based on the information available.
Imposition of Cost: Given the lack of cooperation from Bodake, ITAT Mumbai imposed a cost of Rs. 2000. This amount is to be credited to the income tax department as ‘other fees’. The cost serves as a penalty designed to make the assessee realize the importance of tax proceedings.
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