Shankar Prasad Vs Assessment Unit (ITAT Patna)
Income Tax Appellate Tribunal (ITAT), Patna Bench, has directed the National Faceless Appeal Centre (CIT(A)) to conduct a fresh hearing of an appeal filed by an individual assessee, Shankar Prasad. The tribunal’s decision was based on its finding that the assessee was not afforded a proper opportunity to present his case before the CIT(A), and that the appellate authority had dismissed the appeal without delving into its merits.
The case originated when the Assessing Officer (AO) received information that Shankar Prasad had made significant cash withdrawals amounting to Rs. 1,37,13,000/- from a Canara Bank current account during the financial year 2017-18. Despite these transactions, the assessee had not filed any income tax return for the relevant assessment year.
Following this information and after obtaining necessary approvals, the AO issued a notice under Section 147 read with Section 148A of the Income Tax Act, 1961, via email. In response, the assessee filed a belated return after 11 months, declaring a total income of Rs. 1,04,090/-. During the subsequent assessment proceedings, the AO also issued a notice under Section 142(1) requesting specific details and documents.
Due to a lack of response from the assessee to these notices, the Assessing Officer proceeded to complete the assessment based on the available material. This resulted in the determination of a total income of Rs. 8,60,862/-, which included a disallowance of Rs. 3,34,294/- and an addition of Rs. 4,22,478/- as cash credit under Section 68 of the Act.
