BHUPINDER SINGH ,ZIRAKPUR V. ITO WARD 3(5) , CHANDIGARH

ITA 867/CHANDI/2023

AI Insights

The case involves Shri Bhupinder Singh, who appealed against the order of the CIT(Appeals) confirming the re-opening of his assessment and the addition of Rs.1,26,00,000 to his income for the assessment year 2012-13. The AO had reopened the assessment based on information that a substantial amount of cash was deposited in a bank account jointly held by the assessee and his deceased mother. The assessee contended that the deposits were from the sale proceeds of agricultural land by his mother, which were not his income. The Tribunal found that the assessee had sufficiently explained the source of the deposits as sale proceeds of agricultural land and thus deleted the addition. However, it upheld the re-opening of the assessment due to the unexplained nature of the large deposits initially noted by the AO.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 398168 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-06-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: AJAY JAIN
• Keywords: Reopening of assessment
• Section: 148

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 आयकर अपील सं./ ITA No. 867/CHD/2023 Ǔनधा[रण वष[ / Assessment Year: 2012-13 Shri Bhupinder Singh, House No. 4, Village-Singhpura, Zirakpur (Punjab). Vs The ITO, Ward 3(5), Chandigarh. èथायी लेखा सं./PAN NO: DMRPS2593Q अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent Assessee by : Shri Ajay Jain, CA Revenue by : Shri Vivek Vardhan, Addl. CIT Date of Hearing : 07.05.2025 Date of Pronouncement : 03.06.2025 PHYSICAL HEARING O R D E R PER RAJ PAL YADAV, VP The assessee is in appeal before the Tribunal against the order of ld. CIT(Appeals) dated 20.12.2023 passed for assessment year 2012-13. The assessee has raised two grounds of appeal, wherein he has pleaded that ld. CIT(A) has erred in confirming the re-opening of assessment and addition of Rs.1,26,00,000/- added by the AO with the aid of Section ITA No.867/CHD/2023 A.Y.2012-13 2 69A of the Income Tax Act, 1961. 2. The brief facts of the case are that assessee has not filed his return of income u/s 139(1) of the Act but filed on 02.12.2019 declaring total income of Rs.1,49,040/-. The above income was declared under the presumptive scheme of taxation u/s 44AB. He has declared total turnover of Rs.18,63,000/- and income was offered at 8% of the total turnover. The ld. AO got an information from Investigation Wing that a cash of Rs.1,48,40,000/- has been deposited in the bank account of the assessee, therefore, he recorded the reasons and reopened the assessment by issuance of a notice u/s 148 of the Act on 24.03.2019. The assessee has filed return of income on 02.12.2019. The assessee has contended that account with HDFC Bank was a joint account with his mother Smt. Amar Kaur, who was the primary account holder and the assessee is secondary account holder. It was contended that the money was deposited by his mother and not by the assessee. The mother of the assessee was expired. The ld. AO was not satisfied with the submissions of the assessee. He made an addition of Rs.1,26,00,000/- on account of deposits made in the Saving Bank Account with HDFC Bank. ITA No.867/CHD/2023 A.Y.2012-13 3 3. In the appeal, assessee has contended that his mother has sold agriculture land and these amounts were received as advance qua the sale proceeds. These were deposited in the bank account by his mother and therefore, no addition deserves to be made. The ld. CIT(A) has rejected the contention of the assessee and confirmed the addition. The primary finding of the ld. CIT(A) is that during the course of assessment proceedings, assessee only submitted a hand- written Agreement in Punjabi script. Apart from the above, assessee has not submitted other details. 4. With the assistance of ld. Representative, we have gone through the record carefully. Copy of the alleged hand-written Agreement is available on page 19 and 20. Thereafter, its translation has been placed on page No. 21. A perusal of page 19 would indicate that mother of the assessee has agreed to sell 12 bighas of agriculture land comprised in Khatoni No. 22-25 Khasra No. 307 (4-0) 308 (4-0) and 310 (4-0). This was agreed to sell for a consideration of Rs.4,02,00,000/- to Shri Jyotinder Singh Cheema, S/o Shri Inderjeet Singh Cheema, resident of 1534, Sector 34, Chandigarh. The assessee has taken advance from the vendor. Ultimately, Sale Deed was registered and the land was sold for a consideration of ITA No.867/CHD/2023 A.Y.2012-13 4 Rs.6,70,00,000/-. The copy of the Sale Deed has been placed on page No. 63 to 67 of the Paper Book. The assessee has placed on record copy of Bank Statement on page Nos. 69 to 72. A perusal of the above documents would reveal that a sum of Rs.15 lacs was received by the mother of the assessee on 16.12.2011 and it was deposited on 20.12.2011. This fact is discernable from the details of money paid by the vendor, reflected in the Sale Deed vis-à-vis entries available in the bank account on page No. 69 of the Paper Book. The mother of the assessee has received sufficient money for sale of her alleged agriculture land which was stated to be deposited in the bank account. The assessee has demonstrated full details of the payments received under the Sale Agreement which was ultimately reflected in the Sale Deed. Thus, the mother of the assessee was having sufficient source for explaining the deposits in the bank account. The assessee has not been doing any other business which could have generated this much of money to him and the AO could be goaded to disbelieve the version put-forth by the assessee. 5. On due consideration of these facts and circumstances, we are satisfied that assessee has explained the source of deposits in the bank being sale proceeds of agriculture land ITA No.867/CHD/2023 A.Y.2012-13 5 sold by his mother. Accordingly, no addition is sustainable. We allow this ground of appeal of the assessee and delete the addition. 6. As far as second fold of grievance regarding re-opening is concerned, we find that it is not discernable that assessee has filed original return of income within due date u/s 139(1) of the Act. The AO has received an information that a huge cash of more than Rs. 1.48 Cr has been deposited in the bank account of the assessee which is not in consonance with the income of the assessee because return was not available. In this situation, there was no other choice with the AO to examine whether deposits in the bank account are from explained source or from unexplained source. Hence, he has to reopen the assessment. Therefore, we do not find any error regarding re-opening of the assessment. It is upheld. 6. In the result, appeal of the assessee is partly allowed. Order pronounced on 03.06.2025. Sd/- Sd/- (KRINWANT SAHAY) (RAJPAL YADAV) ACCOUNTANT MEMBER VICE PRESIDENT “Poonam” ITA No.867/CHD/2023 A.Y.2012-13 6 आदेश कȧ ĤǓतͧलͪप अĒेͪषत/ Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकर आयुÈत/ CIT 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "