Ranbir, New Delhi V. ITO, Ward-5, Rohtak

ITA 678/DEL/2023

AI Insights

The case involves an appeal by Ranbir against the order of the National Faceless Appeal Centre (NFAC), which confirmed the addition of Rs.8,50,000 as unexplained cash deposits during the demonetization period. The Income Tax Officer (ITO) had initially made this addition under Section 144 of the Income Tax Act, treating the deposits as unexplained money. The CIT (A) upheld this decision, leading to the appeal in the Income Tax Appellate Tribunal. The Tribunal, after reviewing the financial details provided by Ranbir, including cash withdrawals, milk sales, and agricultural income, concluded that the deposits were explainable and thus allowed the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121458 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 30-07-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 13-03-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Additional evidence
• Section: 144; 69A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘SMC’, NEW DELHI Before Sh. Kul Bharat, Judicial Member Dr. B. R. R. Kumar, Accountant Member ITA No. 678 /Del/2023 : Asstt. Year: 2017-18 Ranbir, C/o The Tax Chambers, Advocates & Legal Advisors, C-177, Defence Colony, LGF, New Delhi-110024 Vs Income Tax Officer, Ward-5, Rohtak, Haryana-124001 (APPELLANT) (RESPONDENT) PAN No. BODPS8103L Assessee by : Ms. Swati Talwar, Adv. Revenue by : Sh. Om Parkash, Sr. DR Date of Hearing: 31.07.2023 Date of Pronouncement: 31.07.2023 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by assessee against the order of National Faceless Appeal Centre (NFAC), Delhi dated 11.01.2023. 2. Following grounds have been raised by the assessee: “1. That on the facts and circumstances of the case, the order passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre - CIT (A), NFAC, ("Ld. CIT(A)") dated 11.01.2023 (hereinafter referred to as 'impugned appellate order') is erroneous, arbitrary, without jurisdiction, illegal and bad in law. 2. That the Ld. CIT(A) has grossly erred in law and on facts of the case in confirming the addition made by Income Tax officer, Ward 5, Rohtak (hereinafter ITA No. 678/Del/2023 Ranbir 2 referred to as "Ld. AO") u/s 144 of the Income Tax Act in case of the Appellant amounting to Rs.8,50,000/-on account of cash deposit made during demonetization period being treated as unexplained money. 3. That on the facts and circumstances of the case the assessment order passed by the Ld. AO and confirmed by Ld. CIT (A) is in violation to the principles of natural Justice. The Ld. AO did not pass the speaking order and disregarded the return of income and responses filed by the Appellant. 4. That the LA. CIT(A) has erred in law and on facts in confirming the additions made by Ld. AO under Section 69A r.w.s. 115BBE amounting to INR 8,50,000 by considering agricultural income as unexplained cash deposit. 5. That the Ld. CIT(A) has erred in law and on facts in confirming Ld. AO's order making additions under Section 69A r.w.s. 115BBE amounting to INR 8,50,000/- which was passed solely relying upon information about cash deposits made during the demonetization period and not bringing any evidence contrary to documents on record. 6. That the Ld. AO has grossly erred in law and on facts of the case in invoking provisions of 69A r.ws 115BBE. 7. That the Ld. CIT(A) erred in not considering the return of income and additional evidences as filed by the appellant under Rule 46A.” 3. The assessee is an agriculturist engaged in agriculture and allied activities. Based on the total cash deposits of Rs.11,00,000/-, the AO made addition of Rs.8,50,000/- giving benefit of Rs.2,50,000/- as cash in hand which the ld. CIT(A) has confirmed. ITA No. 678/Del/2023 Ranbir 3 4. We have gone through the summary of cash which is as under: Particulars Amount (In Rs.) Opening Balance as on 01.04.2016 1,99,832 Add: Cash Withdrawal from Bank 10,01,000 Add: Milk Sale 2,88,695 Add: Agriculture Income 1,20,000 Less: Expenses incl. Chara Exp., Household Expt., Conveyance, Drawing etc. 4,98,252 Closing Balance as on 07.11.2016 11,11,275 5. On going through the availability of the cash along with its sources with the assessee, we hold that no addition is called for on this account. 6. In the result, the appeal of the assessee is allowed. Order Pronounced in the Open Court on 31/07/2023. Sd/- Sd/- (Kul Bharat) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 31/07/2023 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR