LAKHVEER SINGH,RAMPUR V. INCOME TAX OFFICER, RAMPUR

ITA 3948/DEL/2023

AI Insights

The case involves Lakhveer Singh, an agriculturist with additional income from dairy farming, who appealed against the order of the Commissioner of Income Tax (Appeals) which confirmed an addition of Rs.3,50,000 to his income for the assessment year 2017-18. The addition was initially made by the Assessing Officer due to unexplained cash deposits of Rs.11,50,000 in Singh's bank account during the relevant period. The CIT(A) partially upheld this addition after rejecting Singh's explanations regarding the sources of these deposits, which included advances from his cousins, Sardar Tirlok Singh and Sardar Daljeet Singh. The Tribunal found that the CIT(A) had not adequately investigated the matter, leading to the deletion of the addition.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 298863 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH TIWARI
• Section: 69A

Judgement Text

"आयकर अपीलीय अिधकरण िदʟी पीठ “एस एम सी”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER आअसं.3948/िदʟी/2023 (िन.व. 2017-18) ITA No.3948/DEL/2023 (A.Y.2017-18) Lakhveer Singh, Village Sihore Tehsil Bilaspur, Uttar Pradesh 244921 PAN: CLJPS-1756-D ...... अपीलाथᱮ/Appellant बनाम Vs. Income Tax Officer, Kothi Khaas Bagh, Rampur, Uttar Pradesh 244901 ..... ᮧितवादी/Respondent अपीलाथŎ Ȫारा/ Appellant by : None ŮितवादीȪारा/Respondent by : Shri Rajesh Tiwari, Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 12/12/2024 घोषणा कᳱ ितिथ/ Date of pronouncement : : 28/02/2025 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (hereinafter referred to as 'the CIT(A)') dated 31.10.2023, for assessment year 2017-18. 2. The assessee in appeal has assailed the addition of Rs.3,50,000/- u/s. 69A of the Income Tax Act,1961(hereinafter referred to as ‘the Act’) confirmed by the CIT(A). The assessee is an agriculturist having agricultural land to the extent of 12.5 acre. Besides agricultural income, the assessee is having income from dairy farming i.e. sale of milk. There were cash deposits in bank account of the assessee to the 2 ITA No.3948/Del/2023 (AY 2017-18) tune of Rs.11,50,000/- during the period relevant to assessment year under appeal. The assessees gave detailed submissions before the Assessing Officer (AO) explaining source of cash deposits during the relevant period. The AO rejected explanation furnished by the assessee and made addition of entire cash deposits. The assessee carried the issue in appeal before the CIT(A). The CIT(A) after examining facts deleted addition of Rs.8,00,000/- and confirmed addition of Rs.3,50,000/- in respect of alleged cash received by the assessee from Sardar Tirlok Singh Rs.2,00,000/- and Sardar Daljeet Singh Rs.1,50,000/- . The contention of the assessee before the CIT(A) was that Sardar Tirlok Singh and Sardar Daljeet Singh are cousins of the assessee. The amount received was in the nature of advances received back and the amount was given by them before the date of demonetization. However, the assessee had deposited cash Rs.2,00,000/- received from Sardar Tirlok Singh and Rs.1,50,000/- received from Sardar Daljeet Singh in his bank account during the period of demonetization. The assessee had also furnished confirmations from the aforesaid persons. 3. Shri Rajesh Tiwari, representing the department vehemently defending impugned order prayed for upholding the additions. The ld. DR submits that apart from confirmations, no other documentary evidence was produced by the assessee to substantiate his contentions. 4. Submissions made by ld. DR heard, order of the authorities below examined. A perusal of assessment order reveals that the AO without even examining the documents furnished by the assessee has made addition in an arbitrary manner. The CIT(A) though examined the issue but failed to make further inquiries from the persons from whom the amount was allegedly received by the assessee. The 3 ITA No.3948/Del/2023 (AY 2017-18) assessee had filed confirmations from both the persons i.e. Sardar Tirlok Singh and Sardar Daljeet Singh. The addition made by the CIT(A), without making further inquiry is unsustainable. Hence, addition of Rs.3,50,000/- confirmed by the CIT(A) is deleted. 5. In the result, appeal of the assessee is allowed. Order pronounced in the open court on Friday the 28th day February, 2025. Sd/- Sd/- (VIKAS AWASTHY) ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी/Delhi, ᳰदनांक/Dated 28.02.2025 NV/- ᮧितिलिप अᮕेिषतCopy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT/CIT(A) 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI 4 ITA No.3948/Del/2023 (AY 2017-18) "