ITAT: Selective compliance to assert and enjoy one’s right of appeal is not the intent of the law and cannot be increased

The Income Tax Appellate Tribunal (ITAT) has ruled that an assessee cannot selectively comply with legal requirements to enhance their right of appeal. In this case, the assessee, an NRI, challenged an addition of Rs. 11,91,000 treated as income from undisclosed sources. The assessee claimed they were unaware of notices due to residing abroad and that their mother, at whose address notices were sent, had also moved. The Tribunal emphasised that the law's intent is not to allow individuals to benefit from partial compliance.

IN THE INCOME TAX APPELLATE TRIBUNAL,
DELHI BENCH: ‘SMC-1’ NEW DELHI

BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER
AND
SHRI O.P. KANT, ACCOUNTANT MEMBER
[Through Video Conferencing]

ITA No.6855/Del/2019
Assessment Year: 2011-12

Sh. Amit Aggarwal,
117, 1st Floor, Harsh Vihar,
Pitampura,
Delhi
PAN :AHAPA8853G
(Appellant) 

Vs.

ITO,
Ward-38(2),
Delhi
(Respondent) 

Appellant by None
Respondent by Sh. R.K. Gupta, Sr.DR

Date of hearing 01.07.2021
Date of pronouncement 01.07.2021

ORDER

PER O.P. KANT, AM:

This appeal has been preferred by the assessee challenging the order dated 12/06/2019 passed by the learned Commissioner of Income Tax (Appeals)-13, New Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2011-12 raising following grounds:

1. The Ld. A.O. had made an addition of Rs.11,91,000/- as cash deposited and treated it as income of the assessee from undisclosed sources. Further, at the time of appellant proceeding we submitted all the explanation in respect of cash deposit. And all the documents/copy of deeds produced to before 

CIT-13 to prove the source of cash deposited in the bank. The cash deposited in the bank was out of the earlier cash withdrawal from the saving bank account.

2. The assessee is NRI and residing at U.S.A since 15.06.2009 and doing medical practice, therefore he could not get informed. In the month of December 2018, when he visited to India on the occasion of family function he got about the notices and order. In this respect A.R. submitted copy of passport and visa for confirmation the status of appellant

3. It is bring to your kind notice that before CIT-13 never raised any query regarding address of the appellant and his mother’s current address nor given any opportunity of being heard to appellant. Further we would like to your kind attention his mother had not any information regarding notices as she was not residing on said address in the order. The current address of the appellant’s mother is 117, 1st Floor, Harsh Vihar, Pitampura, Delhi-110034 and the same address as proof of resident address is mentioned on passport.

4. The appellant have all the information and can provide the required informations/documents.

5. The appellant craves to add or amend any grounds of appeal.

2. Briefly stated facts of the case are that the assessee is a non-resident Indian and permanent resident of United States of America (USA) and working as a professional doctor. On the basisof the Annual Information Return (AIR), a cash deposit of ₹ 11,91,500/- during financial year 2010-11 relevant to assessment year under consideration, i.e., AY 2011-12 was observed in the bank account maintained by the assessee with ICICI Bank. According to the Assessing Officer, no return of income was filed by the assessee for the year under consideration, therefore, he reopened the assessment by view of issue notice under section 148 of the Income-tax Act, 1961 (in short ‘the Act’) on 19/03/2018. 

To know more in details find the attachment file