KARTAR SINGH KATARIA,DELHI V. INCOME TAX OFFICER, DELHI

ITA 4034/DEL/2025

AI Insights

The case involves Kartar Singh Kataria, a pensioner and agriculturist, who appealed against the order of the Joint Commissioner of Income Tax (Appeals)-5, Kolkata, confirming the addition of Rs 12,75,500 as unexplained income due to cash deposits in his bank account. The Income Tax Officer (ITO), Ward-68(3), Delhi, had initially made this addition under section 144 of the Income-tax Act, 1961, after the assessee failed to comply with notices regarding the source of these deposits. The NFAC dismissed the assessee's appeal due to lack of documentary evidence supporting his claims of income from agricultural activities. The Income Tax Appellate Tribunal (ITAT) found that the NFAC did not adequately consider the assessee's explanations and evidence, leading to the decision to restore the case for a fresh examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772511 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2012-2013
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR
• Keywords: Opportunity of being heard; Reassessment proceedings
• Section: 148; 144; 142(1); 131; 133(6)

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”: NEW DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No. 4034/Del/2025 (Assessment Year: 2012-13) Kartar Singh kataria, RZ 172A, J Block, Old Roshanpura Extension, Najafgarh, New Delhi Vs. Income Tax Officer, Ward-68(3), New Delhi PAN: AHJPK7185L Assessee by : None Revenue by: Shri Manoj Kumar, Sr. DR Date of Hearing 11/08/2025 Date of pronouncement 27/08/2025 O R D E R 1. The appeal in ITA No.4034/Del/2025 for AY 2012-13 arises out of the order of the ld. Jt. Commissioner of Income Tax (Appeals)-5, Kolkata [hereinafter referred to as ‘ld. JCIT(A)’, in short] in Appeal No. ITBA/APL/S/250/2023-24/1060959921(1) dated 15.02.2024 against the order of assessment passed u/s 144 of the Income-tax Act, 1961 dated 18.11.2019 (hereinafter referred to as ‘the Act’) by ITO, Ward-68(3), Delhi (hereinafter referred to as ‘ld. AO’). 2. At the outset, I find that there is a delay in filing of appeal by the assessee by 357 days before me. Considering the reasons adduced in the condonation petition supported with an affidavit placed on record, I am inclined to condone the delay and admit the appeal of the assessee for adjudication. 3. The only surviving issue to be decided in this appeal is as to whether the Learned JCIT(A) was justified in confirming the addition of Rs Printed from counselvise.com ITA No. 4034/Del/2025 Kartar Singh kataria Page | 2 12,75,500/- made on account of cash deposits in the bank account of the assessee in the facts and circumstances of the instant case. 4. I have heard the Learned DR and perused the materials available on record. None appeared on behalf of the assessee. The assessee is a pensioner of MTNL India. The assessee has not filed his regular return of income for the assessment year 2012-13. Notice under section 148 of the Act stood issued to the assessee on 29-3-2019 on the ground of income escaping assessment that there were some cash deposits made in the sum of Rs 12,75,500/-. In response to the said notice, the assessee did not file his return of income. During the course of reassessment proceedings, the Learned AO issued notice under section 142(1) of the Act calling for sources of cash deposits made in the bank account, which stood uncomplied. Notice under section 133(6) of the Act was issued to the Bank to provide information regarding the assessee but the same was not complied with by the Bank. Summons under section 131 of the Act stood issued to the Bank but no compliance was made for the same. One more letter dated 15-10-2019 was issued to the Personal Banking division of the Bank but no compliance was made for the same by the Bank. Accordingly, the Learned AO had no other option but to complete the re-assessment under section 144 of the Act on 14- 11-2019 adding the cash deposits made in bank account as unexplained income under section 69A of the Act in the sum of Rs 12,75,500/-. 5. Before the Learned NFAC, the assessee submitted that he belongs to agriculturalist family and well known to the farmers in villages. He had taken land on lease from the villagers and the same is cultivated by him and the end products are sold in the local market or the persons living around take the products from the land itself. The assessee undertook to produce the villager from whom the land is taken on lease before the authority to prove the genuineness of the transaction. The Learned NFAC however did not heed Printed from counselvise.com ITA No. 4034/Del/2025 Kartar Singh kataria Page | 3 to this contention of the assessee and concluded that assessee had not submitted any documentary evidence of land ownership/land taken on lease, details of evidence of genuineness of agricultural operation etc and dismissed the appeal of the assessee. 6. I find that assessee had sought to explain the source of cash deposits to arise out of sale proceeds of trading of agricultural products. The assessee also expressed his willingness to produce the villager from whom the land was taken on lease by him to carry out the agricultural activities. But this submission was not appreciated by the Learned NFAC. Hence in the interest of justice and fair play, I deem it fit and appropriate to restore this appeal to the file of Learned NFAC for de novo adjudication in accordance with law. The assessee is at liberty to furnish fresh evidences, if any, and raise fresh grounds, if any, in support of his contentions. Needless to mention that the assessee be given reasonable opportunity of being heard. The assessee is directed to cooperate with the Learned NFAC for expeditious disposal of this appeal by not taking unwarranted adjournments except due to exceptional or bonafide circumstances. With these observations the grounds raised by the assessee are allowed for statistical purposes. 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 27/08/2025. -Sd/- (M. BALAGANESH) ACCOUNTANT MEMBER Dated: 27/08/2025 A K Keot Copy forwarded to 1. Applicant Printed from counselvise.com ITA No. 4034/Del/2025 Kartar Singh kataria Page | 4 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi Printed from counselvise.com "