2023 (4) TMI 808 - AT - Income Tax

Unexplained credit in bank account - As argued AO has erred in making addition knowing the fact that Bank account is holding jointly by husband and wife - HELD THAT - In the affidavit, the assessee contended that no return of income was filed by her as her income was below the taxable limit. No books of account was required to be maintained. The matter was very old and considerable time was passed as her case relates to A.Y. 2011-12. The assessee collected bank account and other material and his accountant prepared necessary details and books of account. Due to non-availability of such material evidence, the assessee could not produce the details before the AO in time which resulted in passing ex parte order. The assessee in the affidavit also prayed to produce additional evidence. For admission of additional evidence, the assessee contended that the documents are necessary to decide the matter effectively and completely. The assessee tried her best with due diligence to produce document but she could not receive such documents in time. Such documents are necessary to prove the genuineness of claim of assessee. There was no fault on the part of assessee as the assessee made sufficient effort to collect such evidence. Assessee has filed the assessment order in case of her husband wherein the same addition with regard to cash credit in joint bank account has been made. It is settled legal position under law that the same income cannot be taxed twice. Therefore, the appeal of assessee is restored back to the file of ld. CIT(A) to decide the appeal on merit. CIT(A) is also directed to consider the additional evidence which was filed by assessee on record. Appeal of the assessee is allowed for statistical purpose.

Summary

Issues Involved:
The issues involved in the judgment relate to the addition made by the Assessing Officer in the assessment order, the delay in filing the appeal before the ld. CIT(A), and the plea for condonation of delay by the assessee.

Addition Made by Assessing Officer:
The Assessing Officer made an addition of Rs. 12,84,029/- in the assessment order under Section 144 r.w.s. 147 of the Income Tax Act, 1961. This addition comprised Rs. 11.30 lacs cash deposit and Rs. 1,54,029/- on account of other credit in the bank account, treated as unexplained credit. The appellant contended that the addition was erroneous as the bank account was jointly held by the husband and wife. The delay in filing the appeal was attributed to the need to collect evidence from bankers and other sources to substantiate the claim. The ld. AR of the assessee argued that the delay was unintentional and not deliberate, emphasizing the merit of the case and the similar addition made against the husband of the assessee.

Delay in Filing Appeal:
The delay in filing the appeal before the ld. CIT(A) was a crucial aspect of the case. The assessee filed the appeal 140 days after the assessment order, citing reasons such as lack of awareness about the technicalities of income tax matters and the time required to gather necessary evidence. The plea for condonation of delay and admission of additional evidence was dismissed by the ld. CIT(A) on the grounds of insufficient cause shown by the assessee and lack of due diligence in presenting the appeal. However, the ld. AR of the assessee argued that the delay was reasonable and not intentional, given the efforts made to collect relevant documents.

Judgment and Direction:
The Judicial Member considered the submissions of both parties and reviewed the orders of the lower authorities. It was noted that the same cash credit had been taxed twice, once in the hands of the assessee and once in the hands of her husband. The delay in filing the appeal was condoned based on the reasons provided by the assessee and the absence of intentional delay. The judgment emphasized the principle that the same income cannot be taxed twice and directed the ld. CIT(A) to reconsider the appeal on merit, taking into account the additional evidence filed by the assessee. The assessee was granted liberty to submit any further relevant evidence to support her claim.

Conclusion:
In conclusion, the appeal of the assessee was allowed for statistical purposes, and the case was restored back to the file of the ld. CIT(A) for a fresh decision on merit. The judgment highlighted the importance of considering substantial justice in cases where technicalities and delays are involved, ultimately aiming to ensure a fair and just outcome for the parties involved.