AJIT SINGH,PATIALA V. ITO, PATIALA

ITA 158/CHANDI/2025

AI Insights

The case involves an appeal by the assessee, Ajit Singh, against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, which pertained to the assessment year 2012-13. The primary issue arose from substantial cash deposits made by the assessee in his bank account, which were deemed unexplained by the Assessing Officer, leading to an addition of \\u20b916,19,000 under Section 69A of the Income Tax Act. The assessee's appeal was initially dismissed by the CIT(A) due to non-compliance and non-appearance. The Income Tax Appellate Tribunal (ITAT) found that the assessee had not been heard on merits and restored the matter to the Assessing Officer, emphasizing the principles of natural justice over technicalities.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772356 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2012-2013
• Other Referred Cases: B.N. Bhattacharjee & Another v. Union of India (118 ITR 461)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURINDER KAUR WARAICH
• Keywords: Condonation of delay; Opportunity of being heard; Reassessment proceedings; Onus to prove; Principle of natural justice
• Section: 147; 148; 143(3)

Judgement Text

"आयकर अपीलीय अिधकरण,चǷीगढ़ Ɋायपीठ “SMC” , चǷीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “SMC”, CHANDIGARH HEARING THROUGH: PHYSICAL MODE ŵी लिलत क ुमार, Ɋाियक सद˟ BEFORE: SHRI. LALIET KUMAR, JUDICIAL MEMBER आयकर अपील सं./ ITA No. 158/Chd/ 2025 िनधाŊरण वषŊ / Assessment Year : 2012-13 Ajit Singh, Lehla Jagir, Devinagar, Patiala 147111 बनाम ITO, Patiala ˕ायी लेखा सं./PAN NO: JKCPC2535H अपीलाथŎ/Appellant ŮȑथŎ/Respondent िनधाŊįरती की ओर से/Assessee by : None (Adjournment Rejected) राजˢ की ओर से/ Revenue by : Smt. Surinder Kaur Waraich, Addl. CIT Sr. DR सुनवाई की तारीख/Date of Hearing : 26/08/2025 उदघोषणा की तारीख/Date of Pronouncement : 26 /08/2025 आदेश/Order PER LALIET KUMAR, J.M: This appeal by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, dated 19.03.2024 for the assessment year 2012-13. 2. The Registry has pointed out that there was a delay of 245 days in filing of the appeal. During the proceedings before us, the ld. Counsel for the Assessee has submitted an application for condonation of delay along with an Affidavit, which is reproduced as under:- Printed from counselvise.com 2 3. I have considered the reasoning given in the affidavit and inclined to condone the delay. Printed from counselvise.com 3 4. The ld. DR did not have any objection for this condonation of delay. Background facts: 5. The facts, in brief, are that the assessee had made cash deposits of ₹58,60,500/- in his bank account with State Bank of India, Patiala, during the financial year 2011-12. The case of the assessee was reopened under Section 147 of the Act by the issuance of a notice under Section 148 dated 25.03.2019. In response, the assessee filed his return of income. During the course of reassessment proceedings, the assessee explained that the cash deposits were out of (i) sale proceeds of agricultural land, (ii) agricultural income, (iii) past savings, and (iv) withdrawals from the same bank account. The assessee also relied on two sale deeds aggregating to ₹37,65,000/- and further claimed to have received ₹10,00,000/- from a friend, Shri Gurjit Singh. However, as the assessee could not substantiate the entire source of deposits with cogent evidence, the Assessing Officer made an addition of ₹16,19,000/- u/s 69A of the Act, treating the same as unexplained money and completed the assessment u/s 143(3) r.w.s. 147 of the Act vide order dated 11.12.2019. 6. Aggrieved, the assessee preferred an appeal before the ld. CIT(A). It is seen from the appellate order that several notices were issued to the assessee on different dates; however, there was no compliance, nor was any adjournment sought. The ld. CIT(A), therefore, dismissed the appeal, holding that the assessee was not interested in pursuing the matter and even otherwise, on merits also no case was made out for interference with the order of the Assessing Officer. Printed from counselvise.com 4 Submissions of the Departmental Representative (DR) 7. Before us, the ld. Departmental Representative supported the order of the lower authorities. It was submitted that the assessee was given repeated opportunities before both the AO and the ld. CIT(A) but failed to furnish the necessary evidence. The ld. DR emphasised that mere filing of an appeal is not sufficient unless it is effectively pursued, as held by the Hon’ble Supreme Court in the case of B.N. Bhattacharjee & Another v. Union of India (118 ITR 461). It was contended that in view of the assessee’s continuous non-compliance, the appeal was rightly dismissed. 8. Before undersigned, none appeared on behalf of the assessee at the time of hearing. Tribunal’s Observation and Decision 9. I have considered the submissions of the ld. DR and perused the material on record. It is not in dispute that the assessee deposited substantial cash in his bank account and the AO required him to explain the sources. While certain sale deeds were filed, the balance deposits remained unexplained, leading to the addition of ₹16,19,000 under Section 69A. The assessee, though preferring an appeal, did not appear before the ld. CIT(A) despite repeated opportunities. It is well settled that the burden of proof lies on the assessee to substantiate the claim made by him. 10. At the same time, it is also a settled principle that substantive justice should prevail over technicalities. The assessee has not been heard on merits either by the ld. CIT(A) or before us. In the interest of natural justice, therefore, Printed from counselvise.com 5 we deem it appropriate to restore the matter to the file of the Assessing Officer for fresh adjudication. The assessee shall cooperate and file the necessary evidence to substantiate his explanation regarding the cash deposits. The Assessing Officer shall decide the issue afresh in accordance with law after affording due opportunity of being heard to the assessee. Result 11. In the result, the appeal of the assessee is allowed for statistical purposes. Order Pronounced in the open Court on 26/08/2025. Sd/- लिलत क ुमार (LALIET KUMAR) Ɋाियक सद˟ /JUDICIAL MEMBER rkk आदेश की Ůितिलिप अŤेिषत/ Copy of the order forwarded to : 1. अपीलाथŎ/ The Appellant 2. ŮȑथŎ/ The Respondent 3. आयकर आयुƅ/ CIT 4. िवभागीय Ůितिनिध, आयकर अपीलीय आिधकरण, चǷीगढ़/ DR, ITAT, CHANDIGARH 5. गाडŊ फाईल/ Guard File सहायक पंजीकार/ Assistant Registrar Printed from counselvise.com "