Mukul Jain, Meerut V. ITO, Ward-1(4), Meerut

ITA 580/DEL/2018

AI Insights

Mukul Jain appealed against the order of the ld. CIT(A), Meerut, which was dated 24.11.2017. The primary contention was the assessment order issued under section 144 of the Income Tax Act, 1961, which allegedly lacked an operative part and thus was claimed to be null and void. The assessee also argued that the agricultural income of Rs. 17,67,400, previously accepted in past assessments, was wrongly taxed as business income by the CIT(A). Additionally, a cash deposit of Rs. 13,08,000 in a savings account was contested, being explained as derived from agricultural income and withdrawals, thus should not have been added under section 68. The Tribunal found that the CIT(A) had not adequately addressed these issues and remanded the matter for a detailed examination.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 131806 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 11 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 27-11-2022
• Assessment Year: 2014-2015
• Appeal Filed On: 23-01-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 68; 144; 143(3); 250

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL DELHIBENCH ‘E’, NEW DELHI Before Dr. B. R. R. Kumar, Accountant Member Sh. Yogesh Kumar US, Judicial Member ITA No. 580/Del/2018 : Asstt. Year : 2014-15 Mukul Jain, 72, New Punjabi Pura, Meerut, Uttar Pradesh Vs Income Tax Officer, Ward-1(4), Meerut (APPELLANT) (RESPONDENT) PAN No. AAMPJ8071G Assessee by : Sh. Satish Aggarwal, CA & Sh. Rachit Aggarwal, CA Revenue by : Sh. Amit Shukla, Sr. DR Date of Hearing: 28.11.2022 Date of Pronouncement: 18.01.2023 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the assessee against the order of ld. CIT(A), Meerut dated 24.11.2017. 2. Following grounds have been raised by the assessee: “1. That assessing officer has only given the show cause notice u/s 144 dt. 12.12.2016 in the Asstt. Order and has not made any order/decision in the Asstt. order, there is no finding given in the assessment order after the notice dt. 12.12.2016 has been extracted therein, therefore in the absence of operative part of decision made by the assessing officer in the asstt. order, the assessment order so made is null and void hence deserve to be quashed. The necessary direction to issue notice of demand is also missing in the order. 2. That proper opportunity of hearing was not given to us hence ex-parte assessment order deserve to be quashed. ITA No. 580/Del/2018 Mukul Jain 23. That agriculture income of Rs. 17,67,400.00 has to be allowed as the same has been accepted in the past by AO u/s 143(3) and also by CIT Appeal in appellate proceedings. The assessing officer in his remand report has accepted the agriculture income. Hence the additio n confirmed by CIT Appeal deserve to be deleted. 4. That addition of Rs. 13,08,000.00 being deposit in SB A/c is explained from agriculture income and also withdrawals from the same bank account. Hence addition is against the law and facts of the case and deserve to be deleted. The addition has been made u/s 68 which is against the law, hence addition deserve to be deleted.” Agricultural Income of Rs.17,67,400/-: 3. Being an order u/s 144 of the Income Tax Act, 1961, the AO has not deliberated on the issue but taxed the agricultural income filed as per the return. 4. The ld. CIT(A) treated this amount as income from business and taxed accordingly. 5. We have gone through the order of the ld. CIT(A) which mentioned about the questionnaire issued by the AO and the details of the A.Y. 2013-14 wherein the ld. CIT(A) accepted 90% of the income shown under the head “agricultural income”. During the current year, the ld. CIT(A) did not accept the precedent on the grounds that there was absolute of lack of absence of any evidence that could relate to earning of agricultural income during the year. 6. Thus, effectively, we find that while the Assessment Order was Best Judgment Assessment u/s 144, the ld. CIT(A) summarily rejected the claim of the assessee in the order passed u/s 250 of the Income Tax Act, 1961. Thus, there was ITA No. 580/Del/2018 Mukul Jain 3no primary adjudication on this issue by the revenue authorities. 7. Having gone through the documents filed before us, we deem it fit to remand the matter to the file of the ld. CIT(A) to adjudicate the issue taking into consideration the departmental record of Assessment Years 2012-13, 2013-14, 2015-16 and 2016-17. Cash deposit of Rs.13,08,000/-: 8. This issue relates to the claim of the assessee as being a part of the agricultural income earned and deposited in cash in the bank account. This issue is interrelated with the earning of the agricultural income and hence we direct the ld. CIT(A) to decide along with the issue of receipts shown as agricultural income. 9. In the result, the appeal of the assessee is allowed for statistical purpose. Order Pronounced in the Open Court on 18/01/2023. Sd/- Sd/- (Yogesh Kumar US) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 18/01/2023 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR