ITAT Revives Farmer’s Appeal Dismissed for Non-Compliance; 438-Day Delay Condoned

ITAT Revives Farmer’s Appeal Dismissed for Non-Compliance; 438-Day Delay Condoned

This appeal concerns Shri Shivkant Sakharam Mohite, an individual farmer. Based on cash deposits of Rs. 14,99,000 during the demonetization period, the Assessing Officer issued notices requiring the filing of a return and explanations. The assessee did not respond, allegedly due to a lack of awareness of electronic notices handled only by his tax consultant. The AO, therefore, completed a best-judgment assessment under Section 144 in December 2019, treating the entire cash deposit as unexplained.

The CIT(A) later dismissed the assessee’s appeal, as he too failed to appear on multiple dates, some of which fell during the Covid-19 restrictions.

Main Issue: Whether the 438-day delay in filing the appeal could be condoned, and whether the matter required restoration for a fresh assessment in light of the agricultural income evidence submitted.

Tribunal’s Ruling: The Tribunal condoned the entire delay of 438 days. Relying on the Supreme Court’s principles in Collector v. Katiji and Inder Singh v. State of MP, it held that rural assessees with limited technological exposure often remain unaware of email-based notices. Since the delay was neither intentional nor motivated, and because the assessee promptly acted after becoming aware of the issues, the ITAT admitted the appeal. It also noted that several hearing notices before the CIT(A) fell during COVID-19 restricted periods.

The Tribunal found that the assessee had now produced relevant records supporting his agricultural activities, including crop sale details and a loan ledger specifically meant for agriculturists. These documents required proper verification, which had not been undertaken either by the AO or the CIT(A). Therefore, the ITAT set aside the assessment and restored the matter to the Jurisdictional Assessing Officer for a complete de novo assessment. The AO has been directed to examine the agricultural income claim and the source of cash deposits afresh, after giving adequate opportunity to the assessee.

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