JASPREET SINGH,KARNAL V. ITO-WARD-2-KARNAL, KARNAL

ITA 3647/DEL/2024

AI Insights

The case involves Jaspreet Singh, the appellant, who filed an appeal against the order of the CIT(A) concerning the assessment year 2016-17. The primary issue was the non-adjudication of an additional ground of appeal regarding the source of substantial cash deposits amounting to Rs.1,79,75,500 in the appellant's bank accounts, which were treated as unexplained income by the Assessing Officer under section 68 of the Income Tax Act. The appellant claimed that these deposits were proceeds from the sale of agricultural land. The CIT(A) had noted a temporal gap between the land sales in 2012 and the deposits in 2015-16 but did not fully address the appellant's additional ground. The Tribunal found that the CIT(A) had not adequately examined the details provided by the appellant and remitted the issue back for a comprehensive review.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 474631 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 02-12-2024
• Assessment Year: 2016-2017
• Appeal Filed On: 12-08-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PARKASH
• Keywords: Set aside

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘C’: NEW DELHI BEFORE, SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No.3647/Del/2024 (ASSESSMENT YEAR 2016-17) Jaspreet Singh, 816, Sector-13, Urban Estate, Karnal-132001, Haryana. PAN:AQPPK3283J Vs. Income Tax Officer, Ward-2, Karnal. (Appellant) (Respondent) Assessee by None Department by Shri Om Parkash, Sr. DR Date of Hearing 02/12/2024 Date of Pronouncement 02/12/2024 O R D E R PER MAHAVIR SINGH, VP: This appeal has been filed by the Assessee against the order of Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [“Ld. CIT(A)”, for short], dated 14/06/2024 for Assessment Year 2016-17. 2. At the outset, it is noticed that the second ground of assessee’s appeal as regards to not adjudicating the additional ground of appeal 2 ITA No. 3647/Del/2024 Jaspreet Singh vs. ITO raised vide application dated 27/11/2023. For this, the assesse has raised following ground No.2: “2. That the Ld. CIT(A) has erred in law and facts in not adjudicating the additional ground of appeal raised vide application dated 27/11/2023 and has neither called for any remand report nor given any finding on the evidences submitted along with the said ground of appeal.” 3. This appeal was called for hearting, none was present on assesse side but going through the Assessment Order and the order of the Ld. CIT(A) and the grounds raised before the Ld. CIT(A) and particularly additional ground raised vide application dated 27/11/2023, we deem it appropriate to adjudicate this appeal without hearing the assessee. 4. We have heard the Ld. Sr. DR and gone through the facts and circumstances of the case. The brief facts of the case are that the assesse filed its return of income on 26/03/2017 declaring a returned income of Rs.9,67,350/- + agricultural income Rs.15,00,000/-. The case was selected for scrutiny assessment in order to examine the source of cash deposits made in the various banks account of the assesse amounting to Rs.1,79,75,500/-. The assessee was a non-cooperative and hence, the Assessing Officer framed assessment. Accordingly, entire cash deposits of Rs.1,79,75,500/- was treated as unexplained income of the assesse u/s 68 of the Act. We noted that the assesse has deposited the cash in the following bank accounts, which are tabulated in Assessment Order. 3 ITA No. 3647/Del/2024 Jaspreet Singh vs. ITO Name of the Bank Bank Account No. Amount of Cash deposits Axis Bank, Karnal 913030016904853 Rs.42,92,000/- -do- 913010016229077 Rs.24,52,000/- ICICI Bank Sector-13 Karnal 661705112420 Rs.7,00,000/- -do- 661701700007 Rs.63,36,500/- -do- Sector-12, Karnal 017301514473 Rs.41,95,000/- Total Cash deposits Rs.1,79,75,500/- The assesse has deposited this cash during Financial Year 2015-16 and before Ld. CIT(A) claimed that the assesse has sold plots of agricultural land for a sum of Rs.1,89,37,500/- and this agricultural land was sold and received cash only. The Ld. CIT(A) noted in his appellate order that the one plot of agricultural land in Village Bedanpur, Karnal District was sold for Rs.1,04,50,000/- on 16/07/2012. Similarly, another plot of agricultural land in the same locality was sold for a sum of Rs.84,87,500/- on 07/11/2012. According to Ld. CIT(A), there is a gap between deposits made in Financial Year 2015-16 and land sold in Financial Year 2012-13. We noted that CIT(A) has not examined the details, whether cash is received by assesse from sale of agricultural land or plot in village Bedanpur, Karnal was utilized for any other purpose or not. To examine this aspect, we remit this issue back to the file of Ld. CIT(A) and even otherwise the Ld. CIT(A) has not examined the additional ground of the assesse. The Ld. CIT(A) has to give finding of fact in respect of sale of agricultural land and cash received whether there is correlation between the cash received on account of sale of land during the period 2012-13 with that of cash deposit in bank accounts 4 ITA No. 3647/Del/2024 Jaspreet Singh vs. ITO during 2015-16. In term of the above, we set aside the order of the Ld. CIT(A) and restore this issue back to his file for fresh adjudication. 5. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 02nd December, 2024. Sd/- Sd/- (NAVEEN CHANDRA) (MAHAVIR SINGH) ACCOUNTANT MEMBER VICE PRESIDENT Dated: 02/12/2024 Pk/sps Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "