KEHAR SINGH,CHANDIGARH V. INCOME TAX OFFICER, CHANDIGARH

ITA 170/CHANDI/2025

AI Insights

The case involves Shri Kehar Singh, the appellant, who appealed against the order of the Commissioner of Income Tax (Appeals) confirming the addition of Rs.60 lacs to his income for the assessment year 2011-12. The addition was initially made by the AO following an ex-parte order due to a deposit of Rs.60 lacs in the assessee's bank account, which the AO found unexplained. The assessee contended that the amount represented the proceeds from the sale of agricultural land, for which an Agreement to Sell was executed, though no Sale Deed was formalized. The CIT (Appeals) upheld the AO's addition without addressing the assessee's contentions, leading to the appeal before the Tribunal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714493 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2011-2012
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: AJAY CHAUHAN
• Keywords: Set aside; Additional evidence

Judgement Text

"आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘A’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 170/CHD/2025 Ǔनधा[रण वष[ / Assessment Year: 2011-12 Shri Kehar Singh, House No. 99, Ward No. 8, Village – Bhabat, Zirakpur. Vs The ITO, Chandigarh. èथायी लेखा सं./PAN NO: DSFPS3491C अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent Assessee by : Shri Ajay Chauhan, Advocate Revenue by : Shri Vivek Vardhan, Addl. CIT Sr.DR Date of Hearing : 04.08.2025 Date of Pronouncement : 07.08.2025 PHYSICAL HEARING O R D E R PER RAJ PAL YADAV, VP The assessee is in appeal before the Tribunal against the order of the ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 09.12.2024 passed for assessment year 2011- 12. 2. The grievance of the assessee is that ld. CIT (Appeals) has erred in confirming the addition of Rs.60 lacs. Printed from counselvise.com ITA No.170/CHD/2025 A.Y.2011-12 2 3. The brief facts of the case are that a sum of Rs.60 lacs was deposited in the Saving Bank Account of the assessee on 29.04.2010. The AO sought the explanation of the assessee for said deposit. He passed ex-parte order and made addition of Rs.60 lacs to the income of the assessee. 4. Before ld. CIT (Appeals), it was contended by the assessee that he is a senior citizen aged 76 years. He was owner of agricultural land measuring 2 kanal in village Bhabat. This was sold for a sum of Rs.60 lacs. Though Sale Deed was not executed but Agreement to Sell was executed. The assessee has executed a General Power of Attorney in favour of Shri Dharam Singh S/o Gurcharan Singh and Shri Ram Krishan, resident of Village Bapat. These two persons have divided this land into smaller plots of 3 marla 4 marla and sold them by virtue of General Power of Attorney available in their favour. In other words,, they were representing the assessee as vendor by virtue of General Power of Attorney. Copies of all these Sale Deeds and other details were filed before the CIT (Appeals) but ld. CIT (Appeals) did not deal with any of the issues, rather confirmed the additions without touching any of the contentions of the assessee. It is totally a non- Printed from counselvise.com ITA No.170/CHD/2025 A.Y.2011-12 3 speaking order. The appeal was instituted on 08.01.2019 and it has been decided on 09.12.2024. The dispute remains as it is. 5. Before us, assessee has filed a Paper Book running into 269 pages and permission to place additional evidence on record. After going through the details submitted by the assessee, prima-facie we find a plausible case in favour of the assessee because land was sold by the assessee but these documents were not filed before the AO nor considered by the CIT (Appeals), therefore, for cross- examination, issues are required to be relegated to the AO. Accordingly, we set aside both the orders and restore the issue to the file of AO. The assessee will be at liberty to submit these details before the AO and we direct that the ld. AO shall verify the veracity of these Sale Deeds and thereafter adjudicate the issue. The source of deposit represents the sale proceeds. Accordingly, we allow this appeal for statistical purposes. 6. In the result, appeal is allowed for statistical purposes. Order pronounced on 07.08.2025. Sd/- Sd/- (KRINWANT SAHAY) (RAJPAL YADAV) ACCOUNTANT MEMBER VICE PRESIDENT “Poonam” Printed from counselvise.com ITA No.170/CHD/2025 A.Y.2011-12 4 आदेश कȧ ĤǓतͧलͪप अĒेͪषत/ Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकर आयुÈत/ CIT 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar Printed from counselvise.com "