Savitaben Nathalal Vadi Vs ITO (ITAT Rajkot)
The Income Tax Appellate Tribunal (ITAT), Rajkot Bench, in the case of Savitaben Nathalal Vadi Vs ITO, has allowed the appeal of a 70-year-old assessee, deleting an addition of Rs.2,50,000/− that was made by the Assessing Officer (AO) under Section 69A of the Income Tax Act, 1961. The addition was based on a cash deposit made during the demonetization period, but the Tribunal ruled that the amount fell within the non-taxable limit specified by the CBDT (Central Board of Direct Taxes) for small depositors.
Condonation of Delay
Before addressing the substantive issue, the Tribunal first dealt with the preliminary matter of the appeal being barred by limitation by 153 days. The assessee, a senior citizen aged 70, submitted a petition for condonation of delay, explaining that she was unaware of the order passed ex-parte by the CIT(A)/NFAC. She only became aware of the order when she received recovery notices from the Income Tax Department. The Tribunal, after reviewing the petition, took a benign view of the mitigating circumstances, particularly the assessee’s age and the lack of proper notice during appellate proceedings, and condoned the delay in filing the appeal in the interest of justice.
