BALJIT SINGH,FIROZEPUR V. INCOME TAX OFFICER, FEROZEPUR

ITA 313/ASR/2025

AI Insights

The case involves Shri Baljit Singh Jhanduwala, an agriculturist, who appealed against the addition of Rs.28 Lacs to his income for the Assessment Year 2016-17, which was initially added by the Assessing Officer under section 69A of the Income Tax Act. The addition was based on unexplained cash deposits in the assessee's bank account. The assessee argued that these deposits were sourced from earlier withdrawals and personal savings, which the Assessing Officer rejected due to insufficient explanation of the purpose of these transactions. The Commissioner of Income Tax (Appeals) upheld this addition, leading to the current appeal before the Income Tax Appellate Tribunal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 822725 (ITAT-AMRITSAR)
• Duration Of Justice: 8 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-12-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Appeal Filed On: 17-04-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: CHARAN DASS LD.
• Assessee Lawyers: ASHRAY SARNA LD
• Section: 147; 144

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AMRITSAR PHYSICAL HEARING HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं. / ITA No.313/ASR/2025 (िनधाŊरण वषŊ / Assessment Year: 2016-17) Shri Baljit Singh Jhanduwala, Guruharsahai Ferozepur - 152022 बनाम/ Vs. ITO Ward-3(1) Ferozepur - 152022 ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. HPGPS-5306-F (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Sh. Ashray Sarna (CA) – Ld. AR ŮȑथŎकीओरसे/Respondent by : Sh. Charan Dass (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 16-12-2025 घोषणाकीतारीख /Date of Pronouncement : 23-12-2025 आदेश / O R D E R 1. Aforesaid appeal by assessee for Assessment Year (AY) 2016- 17 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 04-03-2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 147 r.w.s. 144 of the Act on 28-03-2022. The sole issue that falls for my consideration is addition of cash deposit for Rs.28 Lacs. Having heard rival submissions, the appeal is disposed-off as under. 2. From the assessment order, it emerges that the assessee deposited cash of Rs.28 Lacs in its bank account on 03-04-2015 but the assessee did not file return of income. The case was accordingly Printed from counselvise.com 2 reopened wherein the assessee stated that deposits were sourced out of earlier withdrawals of Rs.20 Lacs on 13-01-2015, Rs.6 Lacs on 15- 01-2015 and the remaining deposits were out of personal savings. However, Ld. AO rejected the same on the ground that the purpose of withdrawal and depositing the same again in the bank account was not explained by the assessee. The assessee also deposited Rs.1 Lacs on 02-02-2015 which was not considered. Therefore, the deposits of Rs.28 Lacs were added by Ld. AO to assessee’s income u/s 69A. The Ld. CIT(A) confirmed the addition against which the assessee is in further appeal before Tribunal. 3. From the facts, it emerges that the assessee being an agriculturist has not file return of income. The perusal of bank account statement as placed on record would show that the assessee has loan facility in the said bank account. The assessee has, in fact, withdrawn the funds as enumerated in preceding para-2. The withdrawals amount to Rs.26 Lacs. The subsequent deposits are for Rs.1 Lacs and Rs.28 Lacs. The assessee is not shown to have utilized such withdrawals for any other purpose. Therefore, it could be presumed that the deposits were sourced out of earlier withdrawals only. Hence, considering the facts of the case, I deem it fit to confirm the addition of Rs.3 Lacs. The impugned addition stands restricted to the extent of Rs.3 Lacs. No other ground has been urged in the appeal. Printed from counselvise.com 3 4. The appeal stands partly allowed. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. -Sd- (MANOJ KUMAR AGGARWAL) ACCOUNTANT MEMBER Dated: 23-12-2025 आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT AMRITSAR Printed from counselvise.com "