INDER SINGH,LUDHIANA V. INCOME TAX OFFICER WARD-3(1), RISHI NAGAR LUDHIANA

ITA 65/CHANDI/2025

AI Insights

The case revolves around an appeal by Inder Singh against the order of the Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi, which confirmed the addition of Rs. 21,00,000 to the assessee's income. This addition was initially made by the Assessing Officer, treating the cash deposits in the assessee's bank account during the demonetization period as income from unexplained sources. The assessee, an agriculturist, provided a Cash Flow Statement and other documents to substantiate that the cash deposits were from legitimate agricultural income and cash in hand at the time of demonetization. The Tribunal, after considering the submissions and evidence presented, decided in favor of the assessee, allowing the appeal and deleting the addition.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 396721 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2017-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN; .
• Assessee Lawyers: PARIKSHIT AGGARWAL

Judgement Text

" आयकर अपीलीय अिधकरण,चǷीगढ़ Ɋायपीठ,चǷीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,‘SMC’,CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER आयकरअपीलसं./ITA No.65/CHD/2025 िनधाŊरणवषŊ / Assessment Year : 2017-18 Inder Singh s/o Bara Singh VPO Partap Singh Wala, Basant Nagar, Hambran Road, Ludhiana.141108. बनाम The ITO, Ward 3(1), Rishi Nagar, Ludhiana. ̾थायीलेखासं./PAN NO. DELPS1255F अपीलाथŎ/Appellant ŮȑथŎ/Respondent ( PHYSICAL HEARING ) िनधाŊįरतीकीओरसे/Assessee by : Sh. Parikshit Aggarwal,C.A. राजˢकीओरसे/ Revenue by : Sh.Vivek Vardhan,Addl. CIT.Sr. Dr. सुनवाईकीतारीख/Date of Hearing : 27-05-2025 उदघोषणाकीतारीख/Date of Pronouncement : 30-05-2025 आदेश/Order The present appeal has been preferred by the assessee against the order dated 30-11-2024 passed by the Ld. Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi[hereinafter referred to as ‘CIT(A)’], for the Assessment Year 2017-18. 2. The Assessee in this appeal has agitated against the order of the Ld. CIT(A) in confirming the addition made by the Assessing Officer (A.O.) of Rs. 21,00,000/- by treating the cash deposits made 65-Chd-2025 Inder Singh Ludhiana 2 by the Assessee in the bank account during the demonetization period as income of the Assessee from unexplained sources. 3. At the outset, the ld. Counsel for the Assessee has invited my attention to the Cash Flow Statement, copy of which has been placed at Page 15 of the Paper Book. Ld. counsel for the Assessee has submitted that the Assessee had sufficient cash in hand at the time of announcement of demonetization scheme. He has further explained that the Assessee was an agriculturist. As per ‘J’ Forms, the Assessee had sold his agricultural produce and received Rs.3,14,500/- on 22.04.2016 and Rs. 3,02,600/- on 15.5.2016. He has further submitted that the Assessee was also having cash in hand. The Assessee had deposited Rs. 10,00,000/-in his bank account on 04.06.2016. The Assessee had withdrawn Rs. 23,00,000/ from his bank account on 15.06.2016, The Assessee had further received agricultural income as mentioned in ‘J’ Form of Rs. 6,09,519/- on 25.10.2016 and Rs. 4,48,176/- on 03.11.2016.The Assessee had deposited Rs.5,00,000/- in his bank account on 13.11.2016 and further Rs.5,00,000/- on 15.11.2016 and Rs.1,00,000/- on 22.11.2016. The Ld. counsel has demonstrated from the Cash Flow Statement that the Assessee had sufficient cash in hand. Due to announcement of demonetization scheme, the 65-Chd-2025 Inder Singh Ludhiana 3 amount in specified bank notes was required to be deposited in the bank account. 4. Ld. D.R. could not rebut the above-said factual aspect of the case, I therefore, do not find any justification on the part of lower authorities in confirming the impugned addition, and the same is ordered to be deleted. 5. In the result, the appeal of the Assessee stands allowed. Order pronounced on 30-05-2025. Sd/- (SANJAY GARG) Judicial Member आदेशकीŮितिलिपअŤेिषत/ Copy of the order forwarded to : 1. अपीलाथŎ/ The Appellant 2. ŮȑथŎ/ The Respondent 3. आयकरआयुƅ/ CIT 4. िवभागीयŮितिनिध, आयकरअपीलीयआिधकरण, चǷीगढ़/ DR, ITAT, CHANDIGARH 5. गाडŊफाईल/ Guard File आदेशानुसार/ By order, सहायकपंजीकार/ Assistant Registrar 65-Chd-2025 Inder Singh Ludhiana 4 1. Draft dictated 07.11.2024 Sr.PS 2. Draft first placed before author 3. Approved draft comes to Sr.PS/PS 4 Final draft placed before author 5. Order signed and pronounced on 6 File sent to the Bench Clerk Sr.PS 7. Date on which file goes to the AR 8. Date on which file goes to the Head Clerk. 9. Date of dispatch of Order "