JARNAIL SINGH,S/O MOHINDER SINGH V. INCOME TAX OFFICER, NABHA, NEAR RAILWAY STATION

ITA 1211/CHANDI/2025

AI Insights

The case involves Shri Jarnail Singh, an agriculturist, who appealed against the order of the Commissioner of Income Tax (Appeals) which had upheld the addition of Rs. 10 Lacs to his income by the Assessing Officer. The addition was initially made on the grounds of unexplained cash deposits during the demonetization period. The CIT(A) had dismissed the appeal due to a significant delay in filing, which the Tribunal later condoned. The Tribunal examined the evidence presented, including bank statements showing that the cash deposits were proceeds from agricultural activities, and ruled in favor of the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 792220 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2017-2018
• Appeal Filed On: 23-09-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN LD.
• Assessee Lawyers: NEELAM KUMAR SHAHI VIRTUAL
• Keywords: Condonation of delay
• Section: 144

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, CHANDIGARH HYBRID HEARING HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं. / ITA No.1211/CHANDI/2025 (िनधाŊरण वषŊ / Assessment Year: 2017-18) Shri Jarnail Singh Village Dulladi, Nabha Punjab - 147201 बनाम/ Vs. ITO Nabha ITO, Near Railway Station, Nabha, Punjab - 147201 ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. GIKPS-3439-D (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Sh. Neelam Kumar Shahi (Advocate) (Virtual) – Ld. AR ŮȑथŎकीओरसे/Respondent by : Sh. Vivek Vardhan (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 01-12-2025 घोषणाकीतारीख /Date of Pronouncement : 01-12-2025 आदेश / O R D E R 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017- 18 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 03-09-2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 144 of the Act on 10-12-2019. In the assessment order, Ld. AO made addition of cash deposit of Rs.10 Lacs. The assessee is stated to be an agriculturist having 6 acres of agricultural land. The assessee deposited cash of Rs.10 Lacs during demonetization period which was added by Ld. AO u/s 69A for want of any compliance by Printed from counselvise.com the assessee. The Ld. CIT(A) did not admit the appeal for want of condonation of delay of 4 years and 10 months. Aggrieved, the assessee is in further appeal before Tribunal. 2. The Ld. AR stated that demand notice and assessment order was served upon one Sh. Mohinder Singh on 12-12-2019 who was wrongly taken as the father of the assessee despite the fact that the assessee’s father had already expired on 05-06-2010. The Ld. AR, with the help of bank statements, also demonstrated that the assessee received agricultural proceeds of Rs.10.52 Lacs through Bank Cheque No.397915 which was deposited in SBI, Nabha Bank Account No.65082341645. On the same date, the assessee withdrew cash of Rs.10.52 Lacs which was deposited in PSB KCC Account No. 0850100000367. The said position could not be controverted by Ld. Sr. DR but he supported the orders of lower authorities. 3. I am of the considered opinion that the assessee has demonstrated sufficient cause for delay in first appeal. Nevertheless, on merits, it has amply been demonstrated that the cash deposits had direct nexus with the agricultural proceeds as accrued to the assessee. The assessee does not have any other source of income. Therefore, the impugned addition as made by Ld. AO could not be sustained. I order so. 4. The appeal stand allowed accordingly. Order pronounced on 01st December, 2025. -Sd- (MANOJ KUMAR AGGARWAL) ACCOUNTANT MEMBER Printed from counselvise.com Dated: 01-12-2025 आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT CHANDIGARH Printed from counselvise.com "