ITAT Bangalore Remits Case for Fresh Review Due to Medical Condition of Assessee

The Income Tax Appellate Tribunal (ITAT), Bangalore, has sent an unexplained cash deposit case back to the Assessing Officer after accepting that the delay in filing the appeal was caused by serious medical issues.

The case of the assessee, Shri Satish Heggade, was reopened under section 148 based on the information that he had made cash deposits in his bank accounts. The AO had issued several notices, but the assessee failed to reply to them. As a result, the AO completed the assessments under best judgement and made an addition at 15% of the cash deposits. The AO also imposed penalties under Sections 271(1)(c) and 271AAC(1).

The assessee appealed before the CIT(A), but the same was rejected, citing delay. Therefore, the assessee approached the ITAT.

Before the Tribunal, the assessee explained that the delay was caused by the brain-related medical condition of the assessee, called Basal Ganglia Hematoma disease. He explained that he had been hospitalised and was going through treatment, which affected his business. He also said that his tax practitioner failed to respond to the notices.

Considering the medical condition of the assessee, the ITAT set aside the previous orders and sent the case to the AO for fresh consideration. The penalty issue was also sent to the AO.