APPEAL AGAINST DEMAND ORDER U/S 156

[Guest]

Assessee being an agriculturist sold a part of his agricultural land for ₹ 52,50,000/- in FY 2009-10 and deposited whole amount in his bank savings account.Then assesse transferred whole amount to his son settled in Canada. Assessee has no Pan no. and never filed income tax return .Therefore peak credit of bank account ₹ 53,52,151 assessed as unexplained credit u/s 69A .The department served various notices to Assessee but assessee himself also settled in Canada and no one can appear before tax authorirties.Now a month before assessee come to know about the Assessment order u/s 144 read with section 147 of IT Act.

Query 1. How to file appeal before CIT of Non Pan based assessee ?

Query 2. What grounds of appeal we should make to break this demand order?

Query 3. Any further expert opinion from your valuable experience in such cases ?

[DR.MARIAPPAN GOVINDARAJAN]

The assessee may calculate the income tax for each year and if any tax is payable the same may be paid with interest. Then appeal may be filed against the order. Delay condonation petition may also be filed with the Appellate Authority explaining the residing at Canada and came to know the assessment at the latter stage.

AI Summary

Unexplained credit: compute tax, pay with interest and file delayed appeal with condonation citing foreign residence. Assessment treated bank deposit from a land sale as unexplained credit after funds were transferred abroad; the assessee lacked PAN, had not filed returns, and was resident overseas when proceedings were taken. Practically, the assessee should compute tax for the year, pay due tax with interest, file an appeal against the assessment and demand, and seek condonation of delay from the appellate authority by explaining foreign residence and late knowledge of the assessment while contesting the characterization of the deposit as unexplained credit.