ANGREJ SINGH S/O SH. AJMER SINGH,TEHSIL MORINDA, DISTRICT ROPAR V. INCOME TAX OFFICER,WARD 2(2), ROPAR

ITA 731/CHANDI/2024

AI Insights

The case involves an appeal by Shri Angrej Singh against the order of the Commissioner of Income Tax (Appeals) which confirmed the additions made by the Assessing Officer for the assessment year 2012-13. The additions included unexplained cash deposits amounting to Rs.68,88,000 and an alleged interest income of Rs.43,954. The Tribunal examined the bank statements and other evidence presented, which showed that the large cash withdrawals were re-deposited, and the agricultural income was not adequately considered by the lower authorities. The Tribunal's decision reversed the earlier findings, leading to the deletion of the additions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 35564 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: SEEMA KUMAR
• Keywords: Unexplained cash credit
• Section: 144; 13

Judgement Text

"आयकर अपील य अ धकरण,च\u0010डीगढ़ \u0014यायपीठ, च\u0010डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘A’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 731/CHD/2024 नधा\u0011रण वष\u0011 / Assessment Year: 2012-13 Shri Angrej Singh, S/o Shri Ajmer Singh, Village-Maruali Khurd, Tehsil-Morinda, Distt. – Ropar. Vs The ITO, Ward 2(2), Ropar. \u0016थायी लेखा सं./PAN NO: DELPS4191Q अपीलाथ\u001a/Appellant \u001b यथ\u001a/Respondent Assessee by : Ms. Seema Kumar, C.A. Revenue by : Shri Vivek Vardhan, Addl.CIT, Sr.DR Date of Hearing : 08.01.2025 Date of Pronouncement : 09.01.2025 PHYSICAL HEARING O R D E R PER RAJ PAL YADAV, VP The assessee is in appeal before the Tribunal against the order of the Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 26.04.2024 passed for assessment year 2012-13. The assessee has taken seven grounds of appeal but his grievance revolves around a single issue namely, ld. CIT(A) has erred in confirming the addition of ITA No.731/CHD/2024 A.Y.2012-13 2 Rs.69,31,950/- which include cash deposits of Rs.68,88,000/- and alleged interest income on such amount at Rs.43,954/-. 2. With the assistance of ld. Representative we have gone through the record carefully. It emerges out from the record that assessment order has been passed under Section 144 of the Income Tax Act, 1961 i.e. according to the best judgement of the Assessing Officer. Simply the impugned order of the ld. CIT(A) is also an ex-parte order. A perusal of the assessment order would reveal that AO has laid his hands on Saving Bank Account bearing No.05462010027470 with Oriental Bank of Commerce. Ld. AO has observed in paragraph No. 5 of the assessment order that assessee has made deposits of Rs.68,88,000/- which includes credit entries in this bank account. Hence, he made the addition on account of unexplained credit and further added interest income at Rs.43,954/-. 3. Appeal to the ld. CIT(A) did not bring any relief to the assessee. ITA No.731/CHD/2024 A.Y.2012-13 3 4. The ld. Counsel for the assessee drew our attention to bank statement of the assessee which has been placed in the Paper Book at page 40-41. A perusal of this bank statement would reveal that on 11.04.2011, assessee has withdrawn Rs.47,25,000/- in cash. A further perusal would indicate that on 5th & 6th April,2011, assessee has deposited Rs.3 lacs and Rs.7 lacs but opening balance in the account was Rs.37,54,581/-. He has withdrawn a sum of Rs.47,25,000/- on 11.04.2011 which has been re-deposited. Similarly, next withdrawal is on 21st November,2011 and 5th January, 2012 amounting to Rs.10 lacs and Rs.14 lacs. These three withdrawals is more than Rs.68,88,000/-. If these very amounts are again deposited by the assessee, then how the amounts available in the account are unexplained ? The ld. Revenue Authorities have failed to appreciate this position of the account statement. Similarly, assessee has demonstrated before us that he has an agricultural land of 104 kanal which is equivalent to 13 acres and atleast an estimated agriculture income can be taken at Rs.12 lacs. These facts were brought to the notice of ld. CIT(A) in the Statement of Facts but not appreciated in right perspective. ITA No.731/CHD/2024 A.Y.2012-13 4 5. After going through these facts and circumstances, we are satisfied that there is no unexplained cash available with the assessee and AO has erroneously made the addition which has been further confirmed by the ld. CIT(A). Therefore, we allow this appeal and delete the addition. 6. As far as interest income is concerned i.e. taxable in the hands of the assessee, it is also below the threshold limit of taxable income, which cannot be taxed. Therefore, no addition is to be made. This addition is also deleted. 7. In the result, appeal of the assessee is allowed. Order pronounced on 09.01.2025. Sd/- Sd/- (KRINWANT SAHAY) (RAJPAL YADAV) ACCOUNTANT MEMBER VICE PRESIDENT “Poonam” आदेश क\u0002 \u0003ितिलिप अ ेिषत/ Copy of the order forwarded to : 1. अपीलाथ\u000f/ The Appellant 2. \u0003\u0010यथ\u000f/ The Respondent 3. आयकर आयु\u0014/ CIT 4. िवभागीय \u0003ितिनिध, आयकर अपीलीय आिधकरण, च\u0018डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "