Ganesan vs. ITO, Ward -2, Nagapattinam

Parties Involved

Facts Summary

The assessee, Ganesan, is an individual earning income from the sale of consumer products and as an Aircel Distributor of Prepaid SIM Cards. He did not file his return of income for the assessment year 2017-18. The Assessing Officer found that the assessee made cash deposits totaling Rs.30,31,500/- during the demonetization period and Rs.2,39,20,031/- during the financial year 2016-17, along with non-cash deposits of Rs.23,75,174/-. The AO issued statutory notices, but the assessee failed to respond. Consequently, the AO concluded the assessment ex-parte, adding Rs.2,39,20,031/- as unexplained money and Rs.1,90,014/- as profits from non-cash credits, resulting in a total income of Rs.2,41,10,045/-. The assessee appealed to the Commissioner of Income Tax (Appeals), whose order was subsequently challenged before the Tribunal.…

Legal Issues

• 1. Whether the delay in filing the appeal by the assessee is condonable.
• 2. Whether the assessee’s failure to participate in the assessment proceedings justifies the ex-parte order by the AO.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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