Shantaram Parshuram Patil Vs DCIT (ITAT Pune)
Notices Sent to Defunct Email and Reopening Reasons Withheld: Pune ITAT Restores Reassessment for Fresh Adjudication
In Shantaram Parshuram Patil v. DCIT, the assessee challenged the reassessment completed ex parte under sections 147, 144 and 144B for AY 2020-21. The Assessing Officer treated all credits appearing in the assessee’s Bank of Maharashtra account as his business turnover.
The assessee contended that all bank credits did not represent business receipts. However, he could not furnish supporting documents because the assessment notices were sent to a defunct email address, different from the email registered on the income-tax portal. It was also contended that the Assessing Officer had not supplied the reasons recorded for reopening.
The Pune ITAT found that there was sufficient cause for the assessee’s non-compliance. Referring to the Bombay High Court decision in Sahebrao Deshmukh Co-operative Bank Ltd. v. ACIT, the Tribunal reiterated that providing the assessee with a copy of the reasons recorded for reopening is mandatory.
Accordingly, the Tribunal set aside the assessment and restored the matter to the Assessing Officer for de novo adjudication. The Assessing Officer was directed to furnish the recorded reasons and provide the assessee a proper opportunity to submit documents and explain the bank credits.
