The Chandigarh bench of the Income Tax Appellate Tribunal ( ITAT ) sets aside the ex-parte order due to the assessee’s illness and husband’s demise and grants a final hearing regarding the addition of Rs. 29.5 lakh as undisclosed income.
In this case, the assessee, Bachan Kaur, had filed the appeal before the ITAT under Section 253 of the Income Tax Act, 1961, against the impugned order passed by the Commissioner of Income Tax (Appeals) [CIT(A)].
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On the basis of the information received by the department that certain cash deposits maintained by the assessee in her savings bank A/c maintained with bank State Bank of India, Pehowa, with reference to the Assessment Year (AY) 2011-2012, the case of the assessee was reopened under Section 147 of the Income Tax Act,1961.
Although notice was sent, there was no reply, and an exparte order was passed by the Assessing Officer (AO) under Section 144 of the Income Tax Statute, which contained an addition of Rs 29,50,000 by treating the deposits in the bank account as income from undisclosed sources.
The CIT(A) upheld the additions made by the AO.
The assessee, who was aggrieved by the order passed by the CIT(A), approached the ITAT for relief.
The ITAT bench, while going through the facts of the present case, observed that the assessee was unwell and her husband was no more. Due to this, she was unable to pursue any proceedings before lower authorities diligently.
The ITAT bench set aside the impugned order. The Bench remanded the case back to CIT()A) and directed the CIT(A) to give the assessee a final opportunity to present her case.
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The ITAT bench, comprisng of Mr. Vikram Singh Yadhav and Mr. Paresh M. Joshi, allowed the appeal of the assessee for statistical purposes.
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