2021 (11) TMI 875 - AT - Income Tax

Exemption from the payment of tax as indigent person - assessee has filed appeal without paying of payment for requisite fee - assessee filed an affidavit before the Tribunal by stating that his day to day life runs only on the money provided by his son and he is not in a position to pay the fee as required by Income Tax Rules - HELD THAT - As the case of the assessee is that he is an indigent person and he is depend upon the money send by his son. The assessee not filed any details to show that he is an indigent person such as bank statement and house which he is residing to show that it is not his own. The assessee except stating he is indigent person, no details was filed for the same. Under these facts and circumstances of the case and also by considering the conduct of the assessee, the assessee cannot be treated as indigent person. Accordingly, we reject the assessee's request for exemption from the payment of tax and this appeal is dismissed for non-rectifying the defect pointed out by the Registry. Appeal filed by the assessee is dismissed.

Summary

Issues:
1. Non-payment of requisite fee for filing appeal.
2. Escapement of income and assessment proceedings.
3. Ex-parte order by CIT(A) due to non-appearance of the assessee.
4. Claim of being an indigent person for exemption from fee payment.

Issue 1: Non-payment of requisite fee for filing appeal

The appeal was filed by the assessee against the order of the Commissioner of Income Tax (Appeals) without paying the required fee. The Registry identified this as a defect appeal due to the absence of the challan showing the fee payment. The assessee, in an affidavit, claimed inability to pay the fee as per Income Tax Rules, stating reliance on financial support from his son and requesting exemption as an indigent person.

Issue 2: Escapement of income and assessment proceedings

The Assessing Officer received information regarding the assessee's undisclosed investments leading to the reopening of the assessment under section 148 of the Income Tax Act. Despite multiple opportunities, the assessee did not participate actively in the assessment proceedings, resulting in an assessment completed under section 144 of the Act.

Issue 3: Ex-parte order by CIT(A) due to non-appearance of the assessee

The assessee filed an appeal before the Commissioner of Income Tax (Appeals) but failed to appear for numerous scheduled hearings. Consequently, an ex-parte order was passed by the CIT(A) on 26.09.2019 due to the consistent non-appearance of the assessee.

Issue 4: Claim of being an indigent person for exemption from fee payment

The assessee's representative argued that the assessee should be considered an indigent person due to financial dependency on his son, requesting exemption from fee payment. However, the Tribunal found the assessee's claim unsubstantiated as no evidence, such as bank statements or proof of residence, was provided to support the indigent status. Consequently, the request for exemption was rejected, and the appeal was dismissed for failing to rectify the defect in fee payment.

In conclusion, the Tribunal dismissed the appeal filed by the assessee due to non-rectification of the fee payment defect, rejecting the claim of being an indigent person for exemption. The judgment highlighted the importance of active participation in assessment proceedings and the necessity of providing substantial evidence to support claims made during the appeal process.