DAVINDER JEET SINGH,SIRHIND V. INCOME TAX OFFICER WARD-1-GOBINDGARH, SIRHIND

ITA 204/CHANDI/2024

AI Insights

This case involves an appeal by Davinder Jeet Singh against the order of the CIT(A)/NFAC Delhi, which pertained to the Assessment Year 2012-13. The primary issue was the addition of Rs. 36,00,000 to the assessee's income, which was the amount deposited in his bank account, under sections 144 and 147 of the Income Tax Act. The AO had made this addition due to the absence of a plausible explanation regarding the source of the cash deposit. The CIT(A) upheld the AO's decision. The assessee contended that he was not properly served with notices and thus could not attend the hearings, leading to the appeal being filed late. The Tribunal found merit in the assessee's submissions, noting the lack of proper notice and the opportunity to present his case, and thus remitted the matter back to the AO for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107790 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Keywords: Capital asset; Reasonable cause
• Section: 148; 144; 54B

Judgement Text

"आयकर अपीलीय अिधकरण,च᭛डीगढ़ ᭠यायपीठ “एस.एम.सी” , च᭛डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCHES, “SMC” CHANDIGARH HEARING THROUGH: PHYSICAL MODE ᮰ी िवᮓम ᳲसह यादव, लेखा सद᭭य BEFORE: SHRI. VIKRAM SINGH YADAV, AM आयकर अपील सं./ ITA No.204/Chd/2024 िनधाᭅरण वषᭅ / Assessment Year : 2012-13 Davinder Jeet Singh, S/o Amrik Singh Vill Gurdhanpur P.O. Tarkheri Tehsil: Amloh Distt: Fatehgarh Sahib, Punjab-147203 बनाम The ITO Ward-1, Gobindgarh Sirhind ˕ायी लेखा सं./PAN NO: AEEPS6831B अपीलाथᱮ/Appellant ᮧ᭜यथᱮ/Respondent िनधाᭅᳯरती कᳱ ओर से/Assessee by : None राज᭭व कᳱ ओर से/ Revenue by : Shri Vivek Vardhan, JCIT सुनवाई कᳱ तारीख/Date of Hearing : 01/01/2025 उदघोषणा कᳱ तारीख/Date of Pronouncement : 09/01/2025 आदेश/Order PER VIKRAM SINGH YADAV, AM This is an appeal filed by the Assessee against the order of the Ld. CIT(A)/ NFAC Delhi dt. 22/08/2022 pertaining to Assessment Year 2012-13. 2. Briefly the facts of the case are that the assessment in this case was completed under section 144 r.w.s 147 of the Act vide order dt. 28/11/2019 wherein an amount of Rs. 36,00,000/- being the cash deposited in the bank account has been brought to tax in absence of any plausible explanation submitted by the assessee explaining the nature and source of the cash deposit. Subsequently, the assessee carried the matter in appeal before the Ld. CIT(A) who has dismissed the appeal of the assessee and sustained the findings of the AO. 2 3. Against the said order. the assessee is in appeal before us. 4. None appeared on behalf of the assessee nor was any adjournment application moved. Considering the facts and circumstances of the case, it was decided that no useful purpose would be served in adjourning the matter any further and it was decided to decide the matter based on material available on the record. 5. The Ld. DR is heard who has relied on the orders of the lower authorities. 6. I have heard the Ld. DR and perused the material available on the record. As per the affidavit of the assessee placed on record, the proceedings under section 148 were initiated by ITO, Ward-1, Mandi Gobindgarh for the impugned Assessment Year and thereafter, on 26/11/2019, an ex-parte order was passed by the AO for the reason that assessee has neither filed any reply nor appeared on the scheduled date of hearing. It was submitted by the assessee that no proper notice was served upon him and due to non service of notice, he could not attend proceedings before AO. Thereafter, the assessee preferred an appeal and again, it has been claimed that no proper opportunity was afforded to the assessee. It was further submitted that order of the Ld. CIT(A) was merely uploaded on the IT Portal and was not delivered to the assessee and he came to know of the same on 25/01/2024 when the hard copy of the penalty order were received by him. And thereafter the assessee took the necessary steps and filed an appeal before this Tribunal. It was submitted that 3 due to non service of the impugned order, the assessee was prevented by sufficient cause for the delayed filing of the present appeal, hence the same may be condoned and the appeal may be admitted for adjudication. 7. It was further submitted that as far as the merits of the case is concerned, he has the necessary evidence in terms of sale deed of agriculture land and other documents and can demonstrate the source of the cash deposit of Rs. 36,00,000/- being the sale proceeds of rural agriculture land as well as the agriculture income. Further, it has been submitted that he has purchased land situated at Village Kaillo and Bhatolia Tehsil & Distt. Hoshiarpur in the very next month and he is also eligible for exemption under section 54B of the Act and it was submitted that an opportunity may be provided to him to appear before the AO and he gives his assurance that he will comply with the speedy disposal of the matter before the AO. 8. I find merit in the submissions so made by the assessee in his affidavit, the contents of which remain unrebutted before me and find that the assessee has a reasonable cause for the delay in filing the present appeal and the same is hereby admitted. Further, given that no finding has been recorded on merit and assessee cannot be condemned unheard especially where he claims that he has the necessary explanation and documentation explaining the nature and source of deposit, the matter is remitted to the file of the AO to decide the same a fresh as per law after providing reasonable opportunity to the assessee. 4 9. In the result, the appeal of the assessee is allowed for statistical purposes. (Order pronounced in the open Court on 09/01/2025) Sd/- िवᮓम ᳲसह यादव (VIKRAM SINGH YADAV) लेखा सद᭭य / ACCOUNTANT MEMBER AG Date: 09/01/2025 आदेश कᳱ ᮧितिलिप अᮕेिषत/ Copy of the order forwarded to : 1. अपीलाथᱮ/ The Appellant 2. ᮧ᭜यथᱮ/ The Respondent 3. आयकर आयुᲦ/ CIT 4. आयकर आयुᲦ (अपील)/ The CIT(A) 5. िवभागीय ᮧितिनिध, आयकर अपीलीय आिधकरण, च᭛डीगढ़/ DR, ITAT, CHANDIGARH 6. गाडᭅ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "