KISHANLAL,SAMBHAL V. ITO-2(5) , CHANDAUSI

ITA 2108/DEL/2024

AI Insights

The case involves an appeal by Kishan Lal against the order of the CIT(A) which confirmed the addition of Rs. 50,00,000 under section 69A of the Income Tax Act, 1961, and the charging of tax under section 115BBE and interest under sections 234A and 234B. The appellant argued that the money was part of a robbery and belonged to various farmers, not to him personally. The Tribunal noted the lack of opportunity given to the assessee to present his case and the need for further investigation into the authenticity of the documents provided, including a judicial order acknowledging the money belonged to various agriculturists.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 470706 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PARKASH
• Assessee Lawyers: DEEPAK SINGH
• Keywords: Opportunity of being heard; Reasonable cause; Principle of natural justice
• Section: 69A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘C’ BENCH, NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER, AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 2108/DEL/2024 [A.Y. 2018-19] Kishan Lal Vs. The NFAC 163/3, Mohalla Saray Delhi, Chandausi Gunnaur PAN: DYBPK 4247 R (Applicant) (Respondent) Assessee By : Shri Deepak Singh, Adv Department By : Shri Om Parkash, Sr. DR Date of Hearing : 28.01.2025 Date of Pronouncement : .02.2025 ORDER PER NAVEEN CHANDRA, ACCOUNTANT MEMBER:- This appeal by the assessee is preferred against the order of the ld. CIT(A), dated 23.11.2023 for A.Y 2018-19. 2 2. The grounds raised by the assessee read as under: “1. Because the LD CIT(A) has erred in passing the ex- party order as the appellant was prevented by a reasonable cause in filing the written submission during appellate proceedings. 2. Because the order appealed against is contrary to the facts, law and principles of natural justice, the appellant craves leave to add, delete, modify or substitute any or all the grounds of appeal at any appropriate time. 3. Because the LD CIT(A) has erred in confirming the addition of Rs. 50,00,000 made u/s 69A of the Income Tax Act, 1961. 4. Because Ld. CIT(A) has erred in confirming the charging of tax of Rs 38,62,500 charged under the provisions of Sec 115BBE of the Act. 5 Because the LD CIT(A) has erred in confirming charging of interest u/s 234A and Sec 234 B amounting to Rs. 15,06,375/-.” 3. The ld. counsel for the assessee has submitted a brief synopsis which reads as under: (1) That an addition of Rs 50,00,000 was made on account of alleged unexplained cash which was part of cash in a robbery. Appellant was subjected to robbery on the Highway. (2) That subsequently robbers were caught with an amount of Rs 30,38,000 which was recovered, and they admitted having looted Rs 50,00,000. Subsequently when the appellant recorded his statement, he verified that his own money was only 5 lakhs while the rest of the money belonged to various farmers. He had sold their farm produce in Delhi and had collected their sales proceeds 3 from Delhi. He was carrying out this work only on commission basis. He is a partner in the firm M/s Shankar Lal and Sons which deals in the grains. Copy of Balance Sheet and Profit & Loss account of the firm is filed at Page No 3 to 15. Commission income is duly reflected in Profit & Loss account. Copy of Registration with Commercial Tax Department indicating nature of nature of business as commission agent is filed at page No 16. (3) That while filing the FIR appellant stated above fact to the police. The police further investigated the matter and enquired from the farmers named by the appellant and found that the money actually belonged to these 26 farmers, copy of police report is attached as Page No 17 and 18. All the 26 farmers also filed affidavits before the Circle Officer of Police at Khair, Aligarh owning the amount which was robbed from the appellant. Copies of affidavit are filed at Page No 19 to 45. The said case was proceeded before the Judicial Magistrate Court No 4 at Aligarh in case No 293/80. The judicial Magistrate passed an order on 01.05.2018 accepting the facts that the money robbed from the appellant belonged to various farmers and should be returned back to them. Copy of the Judicial Magistrate order is attached as page No 45 and 46. (4) That in view of above facts it is requested that the addition of Rs 50,00,000 may please be deleted as it did not belong to the appellant, only an amount of Rs 5 lakhs belongs to the appellant which was out of his own resources. 4. The ld. DR relied upon the orders of the ld. CIT(A). 4 5. We have heard the rival submissions and have perused the relevant material on record. Since the assessee is a small farmer/ arhatia, not conversant with the technology and did not receive notices, we find that the action of the ld. CIT(A) in passing ex parte order to be not justifiable. The ld. CIT(A) ought to have given opportunity to the assessee to explain his case. 6. We find that the ld. CIT(A) has decided the appeal ex parte order. The assessee has placed before us copies of FIR, copy of police report, affidavits of 26 farmers owning the amount and the order of the Judicial Magistrate Court, Aligarh. From the documents filed before us, we note that there is a judicial order from the Judicial Magistrate, Aligarh dated 01.05.2018, that an amount to the extent of Rs 30.38 lakh was recovered by the police from the criminals and the Court acknowledged that the money belonged to various agriculturist. We find that further enquiry is needed at the level of the AO to examine the authenticity of the documents filed. In the event of furnishing of certified order of the CJI, we are of the considered opinion that the AO may consider the amount of Rs 30.38 lakhs as belonging to the agriculturists. 5 7. In light of the above discussion and in the interest of justice and fair play, we deem it fit to restore the appeal to the file of the ld. AO for fresh appraisal of the evidences/documents. The ld. AO is directed to decide the issues afresh after affording reasonable and sufficient opportunity of being heard to the assessee. The assessee is directed to avail the opportunity and present its case. 8. In the result, the appeal of the assessee in ITA No. 2108/DEL/2024 is allowed for statistical purposes. The order is pronounced in the open court on 07.02.2025. Sd/- Sd/- [CHALLA NAGENDRA PRASAD] [NAVEEN CHANDRA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 07th FEBRUARY, 2025. VL/ Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) Asst. Registrar, 5. DR ITAT, New Delhi 6 Sl No. PARTICULARS DATES 1. Date of dictation of Tribunal Order… 28.01.2025 2. Date on which the typed draft Tribunal Order is placed before the Dictation Member 03.02.2025 3. Date on which the fair Tribunal Order is placed before the Dictating Member for pronouncement 4. Date on which the approved draft Tribunal Order comes to the Sr. P.S./P.S. 5. Date on which the fair Tribunal Order is placed before the Dictating Member for pronouncement 6. Date on which the signed order comes back to the Sr. P.S./P.S 7. Date on which the final Tribunal Order is uploaded by the Sr. P.S./P.S. on official website 8. Date on which the file goes to the Bench Clerk alongwith Tribunal Order 9. Date of killing off the disposed of files on the judiSIS portal of ITAT by the Bench Clerks 10. Date on which the file goes to the Supervisor (Judicial 11. The date on which the file goes to the Assistant Registrar for endorsement of the order 12. Date of Despatch of the Order "