Top Stories Failure to appeal before Lower Authorities due to sudden resignation of Accountant without intimation: ITAT directs Re adjudication [Read Order] By Aparna. M – On April 8, 2024 5:10 pm – 2 mins read The Ahmedabad bench Income Tax Appellate Tribunal ( ITAT ) on account of failure to appeal before the lower authorities due to the sudden resignation of accountant without intimation directed readjudication the assessee case. The Assessee Ramakushna Kiritbhai Tripathi, case was reopened when the AO observed that the assessee has financial transactions to the tune of Rs. 31,20,000/- during assessment year 2012- 13. At the same time the assessee did not filed return of income for assessment year 2012-13. Consequently, the notice under Section 148 of the Income Tax Act, 1961 was issued and served upon the assessee. Despite issuing several notices, the assessee has not filed any reply/details and therefore the Assessing Officer made an addition of Rs. 31,20,000/- in respect of the amount credited in the Dena Bank and treated the same as unexplained credit/deposit in bank account. Aggrieved by the assessment order, the assessee filed an appeal before the CIT(A).

The CIT(A) dismissed the appeal of the assessee. During the adjudication Abhimanyu Singh Bhati the counsel for assessee argued that the assessee could not represent his case properly as during assessment proceedings, the assessee has encountered difficulty as the assessee’s accountant left the job and could not intimate the assessee. Further the counsel for assessee argued that before the CIT(A) also, the assessee could not represent his case properly as the assessee was not aware about the procedural part and the notices were not forwarded to the assessee by the professional and the matter remained un-contested. Aashish Rajesh Revar, Department Representatives argued that the assessee should have taken precaution to appear either before the Assessing Officer or CIT(A) and should have represented the case when the time was sufficiently given to the assessee. The tribunal observed that the in the present assessee’s peculiar case wherein the assessee’s accountant who was looking after the assessee’s case left the job without intimating the notices as well as the assessee not being able to know the intricacies of Income Tax Act and its compliances could not represent his case either before the Assessing Officer or before the CIT(A).

After analyzing the submission of both parties, the  single bench of Suchitra Kamble ( Judicial Member ) directed readjudication because of Failure to appeal before the lower authorities due to the sudden resignation of accountant without intimation.