Farida Aboushair Vs ITO (ITAT Bangalore)
The appeal concerns an order passed by the Commissioner of Income Tax (Appeals)/NFAC dated 03.02.2025 for Assessment Year 2017-18. The assessee challenged the order on several grounds, primarily alleging violation of natural justice, incorrect computation of delay, refusal to condone delay, and failure to consider explanations and evidence. The assessee contended that the Commissioner (Appeals) erred in not condoning a delay of 113 days in filing the appeal, wrongly holding the delay to be 177 days. The assessee also submitted that the Commissioner failed to consider substantive issues on merits, including explanations regarding bank transfers by family members, cash deposits sourced from earlier withdrawals, and loans.
The facts reveal that the assessee did not file a return of income for the relevant assessment year. A notice under section 142(1) was issued on 30.11.2017 seeking the return of income. Despite large cash deposits in the bank account, the assessee did not file the return. A further notice under section 142(1) sought detailed explanations for cash deposits and other bank credits. The assessee again did not comply. Subsequently, a show-cause notice dated 25.09.2019 was issued, asking the assessee to explain why cash deposits of Rs. 25,51,000 should not be treated as unexplained cash credit under section 69A and why other credits amounting to Rs. 1,85,37,040 should not be treated as unexplained income. Only one day—until 26.09.2019—was given to respond. With no reply submitted, the Assessing Officer completed the assessment under section 144 on 28.09.2019, adding total bank credits of Rs. 2,10,88,040 as unexplained money.
