BALJINDER KAUR, TEHSIL MOONAK,SANGRUR V. INCOME TAX OFFICER, SANGRUR

ITA 802/CHANDI/2025

AI Insights

The case involves Baljinder Kaur, the appellant, who appealed against the orders of the CIT (Appeals) and the AO for the assessment year 2017-18. The primary contention was regarding an ex-parte assessment order passed by the AO under section 144 of the Income Tax Act, which was based on the best judgment assessment due to non-filing of the return of income by the assessee. The AO had noted substantial cash deposits in the assessee's bank account during the demonetization period, which were not explained. The CIT (Appeals) also dismissed the appeal ex-parte for lack of documentary evidence. The Tribunal, after considering additional evidence presented by the assessee, including documents related to agricultural land and lease agreements, decided to set aside the previous orders and remand the matter back to the AO for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708523 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: KANAV GOYAL
• Keywords: Set aside; Additional evidence; Search and seizure; Application of stay
• Section: 144; 142(1)

Judgement Text

"आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘A’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER Stay Application No. 20/CHD/2025 in ITA No. 802/CHD/2025 Ǔनधा[रण वष[ / Assessment Year: 2017-18 Baljinder Kaur, W/o Bhagwan Singh, Village – Harigarh, PO-Raidharana, Distt.Sangrur (Punjab). Vs The ITO, Ward – Sunam, Sangrur. èथायी लेखा सं./PAN NO: ENNPK8970H अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent & आयकर अपील सं. ITA No. 802/CHD/2025 Ǔनधा[रण वष[ / Assessment Year: 2017-18 Baljinder Kaur, W/o Bhagwan Singh, Village – Harigarh, PO-Raidharana, Distt.Sangrur (Punjab). Vs The ITO, Ward – Sunam, Sangrur. èथायी लेखा सं./PAN NO: ENNPK8970H अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent Assessee by : Shri Kanav Goyal, Advocate for Shri Paras Jain, Advocate Revenue by : Shri Vivek Vardhan, Addl. CIT Sr.DR Date of Hearing : 02.07.2025 Date of Pronouncement : 15.07.2025 PHYSICAL HEARING O R D E R PER RAJ PAL YADAV, VP The assessee is in appeal before the Tribunal against SA 20/CHD/2025 and ITA 802/CHD/2025 2 the order of ld. CIT (Appeals) dated 29.10.2024 passed for assessment year 2017-18. 2. The assessee has filed the present Stay Application in this appeal pleading therein that outstanding demand be stayed during the pendency of the appeal. 3. In response to the notice of hearing, ld. counsel for the assessee seeks an adjournment in the Stay Application, however, we were not satisfied with the reasons assigned by him for seeking the adjournment, hence, his request was rejected. 4. With the assistance of ld. DR, we have gone through the record carefully. On perusal of the record, it was found that a very small issue is being involved in the present appeal, therefore, instead of deciding the Stay Application, we took up the appeal itself for adjudication. 5. The brief facts of the case are that assessee did not file return of income, hence, a notice u/s 142(1) was issued by the AO on 08.03.2018. It revealed to the AO that assessee has deposited cash of Rs.30,29,000/- in her bank account SA 20/CHD/2025 and ITA 802/CHD/2025 3 maintained with Oriental Bank of Commerce, out of which cash of Rs.15,00,000/- has been deposited during demonetization period. Therefore, the AO directed the assessee to file the return and explain the source of this deposit, but the assessee did not respond to the notices of the AO and ultimately, AO has passed an ex-parte assessment order u/s 144 of the Income Tax Act. In other words, it is an assessment according to the best judgement of the AO. After making analysis of the record, ld. AO has determined the taxable income of the assessee at Rs.12,79,000/-. 6. Dissatisfied with the assessment order, assessee carried the matter in appeal before the CIT (Appeals) which has also been dismissed ex-parte because no documentary evidence was submitted before the CIT (Appeals). 7. A perusal of the record would indicate that assessee has filed a Paper Book before the Tribunal wherein she has placed on record copy of Jamabandi, bank statement, affidavits, Cash Flow Statements etc. According to the submissions made by her counsel, it has been pleaded that assessee is having more than 25 acres of agriculture land, out of which SA 20/CHD/2025 and ITA 802/CHD/2025 4 8 acre was given on lease to Shri Gora Singh S/o Shri Hakam Singh and 17 acre was given to Shri Darshan Singh S/o Kesar Singh. From this lease rental, these deposits were made by her. 7.1 The ld. DR, on the other hand, submitted that nothing was produced before the AO. This could be additional evidence, but no formal application has been filed by the assessee for permission to place these documents on the record. 8. We have duly gone through the record carefully. With the assistance of ld. DR we find that assessee had agriculture land reflected in the copies of Jamabandi. Though these copies are in Punjabi, the ld. Sr.DR is able to go through some of the documents. In our opinion, if this additional evidence is being taken on record, then also the opportunity is to be given to the AO for rebuttal of this evidence and also to verify the status of this evidence. Therefore, considering the overall record and the status of the assessment order or order of the CIT (Appeals) being ex-parte, we set aside both the orders and restore this issue to the file of AO for fresh adjudication. The SA 20/CHD/2025 and ITA 802/CHD/2025 5 assessee will be at liberty to submit all these details before the AO. The AO will re-adjudicate the issue after providing due opportunity of hearing to the assessee. 9. As far as the Stay Application is concerned, since we have decided the appeal itself and set aside the assessment order for passing fresh assessment order, the demand would automatically wiped out and this Stay Application will become redundant. Accordingly, it is dismissed. 10. In the result, appeal of the assessee is allowed for statistical purposes and Stay Application is dismissed. Order pronounced on 15.07.2025. Sd/- Sd/- (KRINWANT SAHAY) (RAJ PAL YADAV) ACCOUNTANT MEMBER VICE PRESIDENT “Poonam” Copy of the order forwarded to : 1. The Appellant 2. The Respondent 3. Concerned CIT 4. The CIT(A) 5. DR, ITAT, Chandigarh Assistant Registrar "