AI Insights
This case involves an appeal by Mr. Ashish Ramesh Ajmera against the order of the Addl./Joint Commissioner of Income Tax (Appeals), Panaji, which was based on the assessment order passed under sections 143(3) and 147 of the Income Tax Act, 1961. The primary issues in the appeal included the validity of the assessment proceedings, the addition of Rs. 10,00,000 as unexplained cash deposit under section 69A, and the reduction of agricultural income which was added as unexplained income. The Tribunal found that the assessment proceedings were valid and the additions made were justified, except for the issue of agricultural income, which was remanded back to the Assessing Officer for further examination.
Appeal Details
Counselvise Citation
[2026] 140 COUNSELVISE.COM (IT) 834413 (ITAT-PUNE)
Assessee PAN
Bench
Appeal Number
CRN Number
Duration Of Justice
3 month(s) 4 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
02-02-2026
Appeal Filed By
Assessee
Order Result
Partly Allowed
Bench Allotted
SMC
Assessment Year
2013-2014
Appeal Filed On
28-10-2025
Judgement Text
" आयकर अपीलीय अधिकरण ”एस एम सी” न्यायपीठ पुणेमें। IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “SMC” :: PUNE BEFORE DR.DIPAK P. RIPOTE, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपऩल सं. / ITA No.2506/PUN/2025 निर्धारण वषा / Assessment Year: 2013-14 Mr.Ashish Ramesh Ajmera, Plot No.17, Ashish Saraswati Colony, Vidhyanagri, Dhule – 424005 V s Income Tax Officer, Ward-1, Dhule. PAN: AAOPA3375J Appellant/ Assessee Respondent /Revenue Assessee by Shri Bhuvanesh Kankani Revenue by Shri Sandeep Sathe – JCIT Date of hearing 09/12/2026 Date of pronouncement 02/02/2026 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: This is an appeal filed by the Assessee against the order of ld.Addl./Joint Commissioner of Income Tax(Appeal), Panaji passed under section 250 of the Income Tax Act, 1961 for the A.Y.2013-14 dated 29.08.2025 emanating from the Assessment Order passed under section 143(3) read with section 147 of the Act, dated 14.12.2018. The Assessee has raised the following grounds of appeal : Printed from counselvise.com ITA No.2506/PUN/2025 [A] 2 “1. On the facts and circumstance prevailing in the case and as per provisions and scheme of the Act it be kindly held that Assessment Proceeding so completed are not in accordance with the provisions of sec. 147 of the Act since the issue/reason of re-opening the case and the issue/reason on which addition is made are totally different. Thus, the Assessment Proceedings so completed be kindly held to be invalid and accordingly be quashed. 2. On the facts and circumstance prevailing in the case and as per provisions and scheme of the Act it be kindly held that the addition of Rs. 10,00,000/-made and that upheld u/s 69A of the Act is not in accordance with the provisions of the Act since the source of cash deposit is validly explained and moreover when the same is not even doubted. Thus, the addition so made be kindly deleted and Appellant be given adequate relief in this regard. 3. On the facts and circumstance prevailing in the case and as per provisions and scheme of the Act it be kindly held that the Agricultural income of Rs.5,45,377/- so reduced and added as unexplained income is incorrect and not in accordance with the prevailing facts. Thus, the addition so made be kindly deleted and Appellant be given adequate relief in this regard. 4. On the facts and circumstance prevailing in the case and as per provisions and scheme of the Act it be kindly held that the additions made in the Assessment Proceedings and that upheld by Ld. Addl/JCIT(A) are based on flimsy grounds particularly when the relevant facts are on record. Accordingly, the Assessment so made be kindly annulled and Appellant be kindly granted just and proper relief in this regard. 5. On the facts and circumstance prevailing in the case and as per provisions and scheme of the Act it be kindly held that Assessment Proceeding so initiated and completed are not in accordance with the provisions of the Act. Thus, the Assessment Proceedings so initiated and completed be kindly held to be invalid and accordingly be quashed. 6. On the facts and circumstances prevailing in the case and as per provisions and scheme of the Income-tax Act, 1961 (the Act) Appellant be kindly allowed to produce additional evidence, if required, in the interest of justice. Printed from counselvise.com ITA No.2506/PUN/2025 [A] 3 7. The appellant prays to be allowed to add, amend, modify, rectify, delete, raise any grounds of appeal at the time of hearing.” Submission of ld.AR : 2. Ld.Authorised Representative(ld.AR) for the Assessee filed a paper book. 2.1 Written submission of ld.AR is reproduced as under: “2. Facts of the case and submissions 2.1. Cash deposited in Dhule Vikas Sahakari Bank - Rs.10,00,000 (Ground 1) 2.1.1.1 had deposited cash amounting to Rs.10,00,000 on 24/07/2012 in the Dhule Vikas Sahakari Bank. A copy of the bank account is attached as Annexure 1. 2.1.2. The AO added the above cash deposited in the bank account to the returned income for the year by treating the same as unexplained money under section 69A of the Act. The provisions of section 69A of the Act is reproduced as under: \"Where in any financial year the assessee is found to be the owner of any money, bullion, jewellery or other valuable article and such money, bullion, jewellery or valuable article is not recorded in the books of account, if any, maintained by him for any source of income, and the assessee offers no explanation about the nature and source of acquisition of the money, bullion, jewellery or other valuable article, or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the money and the value of the bullion, jewellery or other valuable article may be deemed to be the income of the assessee for such financial year.\" (emphasis supplied) On perusal of the above section, your Honour may note that the provisions of section 69A of the Act may be invoked when an assessee has found to be the owner of any money which is not recorded in the books of account and he offers no explanation about the nature and source of acquisition of money. Printed from counselvise.com ITA No.2506/PUN/2025 [A] 4 2.1.3.1 vehemently submit before your Honour that the above section 69A of the Act is not applicable in my instance case. The cash deposit of Rs. 10,00,000/- on 24/07/2012, was out of following sources. Date Particulars Amount 10/7/2012 Withdrawal From Shirpur Peoples Bank 6971 3,00,000 10/7/2012 Withdrawal from Shirpur Peoples Bank 6971 3,00,000 18/7/2012 Withdrawal from Axis Bank 50,000 Cash balance out of sale of milt etc. 2,50,000 Total 10,00,000 The relevant extract of Shirpur Peoples Bank 6971 account and Axis Bank account are enclosed as Annexure 2 and Annexure 3 respectively. On perusal of the above table, your Honour may note that out of cash deposit of Rs. 10,00,000 made on the 27/07/2012, Rs. 7,50,000 was withdrawn from two bank accounts on total of three occasions only 9- 17 days before the cash deposited. The balance cash deposit of Rs. 2,50,000 was out of the business of sale of milk. Thus, the source of cash deposited is known, and the same was also furnished before the AO during the course of the assessment proceedings. 2.1.4. Further, I wish to submit before your Honour that the bank account in the Dhule Vikas Sahakari Bank was inoperative since 10/04/2007, and there is only one transaction in the said account in F.Y. 2012-13. As the account was inoperative since 4-5 years, this bank account was not included in my books of accounts. ………… 2. The reason(s) for reopening in your case as requested by you for the AY 2013-14 is as under:- \"On verification of ITS data, it is noticed that during year under the assessee has deposited cash of Rs.4152324/- in the saving bank account. In absence of any return of income for the year under consideration an amount of Rs.4152324/- is considered as income of the Printed from counselvise.com ITA No.2506/PUN/2025 [A] 5 assessee. This total income of the assessee has exceeded the maximum amount which is not chargeable to Income tax. The assessee had failed to file his return of income for the said Assessment Year i.e. A.Y. 2013- 14 within the time allowed U/s. 139 of I.T. Act 1961. Therefore the income chargeable to tax for A.Y. 2013-14 has escaped assessment. ii. I have reason to believe that the Income of the assessee amounting to Rs.4152324/- has escaped assessment for the AY 2013-14 within in the meaning of clause (a) of Explanation 2 to Section.147 of the Income-tax Act, 1961.” Submission of ld.DR : 3. Ld.Departmental Representative(ld.DR) for the Revenue relied on the order of Assessing Officer and ld.CIT(A). Ld.DR submitted regarding Ground No.1 that Assessment was reopened as Assessee has not filed return of income and made cash deposits in bank account. Ld.DR read out the reasons recorded for reopening which are at page no.2 of the paper book. Ld.DR further submitted that in the assessment order, Assessing Officer has made addition of Rs.10 lakhs which was deposited in cash in the bank account. Therefore, there is no merit in Ground No.1. Ld.DR submitted that regarding agricultural income, ld.AR has pleaded that there was agreement entered by Assessee with his Brother and Sisters to cultivate the land was not brought to the notice of Assessing Officer. Findings & Analysis : 4. We have heard both the parties and perused the records. Printed from counselvise.com ITA No.2506/PUN/2025 [A] 6 Ground No.1 : 5. Admittedly, no Return of Income was filed under section 139(1) of the Act. ITO issued notice u/s.148 dated 21.03.2018 for A.Y.2013-14. In response to the notice u/s.148, Assessee filed Return of Income. Assessee has filed copy of reasons for reopening at page no.2 of the paper book. The reasons recorded are as under: “2. The reason(s) for reopening in your case as requested by you for the AY 2013-14 is as under:- \"On verification of ITS data, it is noticed that during year under the assessee has deposited cash of Rs. 4152324/- in the saving bank account. In absence of any return of income for the year under consideration an amount of Rs. 4152324/- is considered as income of the assessee. This total income of the assessee has exceeded the maximum amount which is not chargeable to Income tax. The assessee had failed to file his return of income for the said Assessment Year i.e. A.Y. 2013-14 within the time allowed U/s. 139 of I.T. Act 1961. Therefore the income chargeable to tax for A.Y. 2013-14 has escaped assessment. ii. I have reason to believe that the Income of the assessee amounting to Rs.4152324/- has escaped assessment for the AY 2013-14 within in the meaning of clause (a) of Explanation 2 to Section.147 of the Income-tax Act, 1961.” 5.1 Thus, it can be observed that ITO reopened the case because there were cash deposits in the Saving Bank Account of the Assessee and assessee had not filed Return of Income u/s.139(1) of Printed from counselvise.com ITA No.2506/PUN/2025 [A] 7 the Act. Therefore, ITO had reason to believe that there was escapement of income from assessment. We have perused the assessment order and it is noted that Assessing Officer has made addition of Rs.10 lakhs as according to the Assessing Officer, Assessee could not explain the source of cash deposits. In addition to this, Assessing Officer has also made addition of Rs.5,45,377/- as unexplained money. Thus, it can be observed that the additions made in the assessment order of Rs.10 lakhs which was cash deposit is as per the reasons recorded. Therefore, there is no merit in the Ground No.1, accordingly, Ground No.1 of the Assessee is dismissed. Ground No.2 – Cash Deposit of Rs.10 lakhs : 6. Assessing Officer had observed that Assessee had deposited cash of Rs.10 lakhs on 24.07.2012 in Dhule Vikas Sahakari Bank. Assessing Officer made addition of Rs.10 lakhs. During the proceedings before this Tribunal, ld.AR for the Assessee submitted as under : “2. Facts of the case and submissions 2.1. Cash deposited in Dhule Vikas Sahakari Bank - Rs.10,00,000 (Ground 1) Printed from counselvise.com ITA No.2506/PUN/2025 [A] 8 2.1.1.1 had deposited cash amounting to Rs.10,00,000 on 24/07/2012 in the Dhule Vikas Sahakari Bank. A copy of the bank account is attached as Annexure 1. 2.1.2. The AO added the above cash deposited in the bank account to the returned income for the year by treating the same as unexplained money under section 69A of the Act. The provisions of section 69A of the Act is reproduced as under: \"Where in any financial year the assessee is found to be the owner of any money, bullion, jewellery or other valuable article and such money, bullion, jewellery or valuable article is not recorded in the books of account, if any, maintained by him for any source of income, and the assessee offers no explanation about the nature and source of acquisition of the money, bullion, jewellery or other valuable article, or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the money and the value of the bullion, jewellery or other valuable article may be deemed to be the income of the assessee for such financial year.\" (emphasis supplied) On perusal of the above section, your Honour may note that the provisions of section 69A of the Act may be invoked when an assessee has found to be the owner of any money which is not recorded in the books of account and he offers no explanation about the nature and source of acquisition of money. 2.1.3.1 vehemently submit before your Honour that the above section 69A of the Act is not applicable in my instance case. The cash deposit of Rs. 10,00,000/- on 24/07/2012, was out of following sources. Date Particulars Amount 10/7/2012 Withdrawal From Shirpur Peoples Bank 6971 3,00,000 10/7/2012 Withdrawal from Shirpur Peoples Bank 6971 3,00,000 18/7/2012 Withdrawal from Axis Bank 50,000 Cash balance out of sale of milt etc. 2,50,000 Total 10,00,000 The relevant extract of Shirpur Peoples Bank 6971 account and Axis Bank account are enclosed as Annexure 2 and Annexure 3 respectively. Printed from counselvise.com ITA No.2506/PUN/2025 [A] 9 On perusal of the above table, your Honour may note that out of cash deposit of Rs.10,00,000 made on the 27/07/2012, Rs. 7,50,000 was withdrawn from two bank accounts on total of three occasions only 9- 17 days before the cash deposited. The balance cash deposit of Rs.2,50,000 was out of the business of sale of milk. Thus, the source of cash deposited is known, and the same was also furnished before the AO during the course of the assessment proceedings. 2.1.4. Further, I wish to submit before your Honour that the bank account in the Dhule Vikas Sahakari Bank was inoperative since 10/04/2007, and there is only one transaction in the said account in F.Y. 2012-13. As the account was inoperative since 4-5 years, this bank account was not included in my books of accounts.” 6.1 Thus, it is an admitted fact that Assessee had deposited Rs.10 lakhs cash in his bank account on 24.07.2012. Assessee tried to explain that impugned cash deposits were out of withdrawals made by Assessee from Shirpur People’s Bank. We have already reproduced that Assessee claimed there were withdrawal of Rs.3 lakhs each on 10.07.2012 from Shirpur People’s Bank and Rs.50,000/- from Axis Bank on 18.07.2012. 7. We have perused the bank statement of Axis Bank of the Assessee i.e.Ashish Ajmera which is at page no.10 to 14 of the paper book. It is noted that as per the bank statement, on 18.07.2012, there is no cash withdrawal by the assessee. We specifically asked ld.AR to explain this discrepancy. Ld.AR submitted that the entry in the Axis Bank on 18.07.2012 in the name Printed from counselvise.com ITA No.2506/PUN/2025 [A] 10 of Mr.Rajesh is the withdrawal by the Assessee. However, we do not accept this explanation. Since bank has specifically mentioned that on 18.07.2012 one Mr.Rajesh had taken out Rs.50,000/- vide Cheque No.390389. Therefore, the explanation offered by Assessee regarding cash withdrawal of Rs.50,000/- from Axis Bank is factually incorrect. 8. Again, Assessee claimed that he has withdrawn Rs.3 lakhs + Rs.3 lakhs on 10.07.2012 from The Shirpur People’s Co-operative Bank Limited and these amounts were deposited on 24.07.2012 in Dhule Vikas Sahakari Bank. We have perused the Bank Statement of The Shirpur People’s Co-operative Bank filed by Assessee which is at page no.9 of the paper book and noted that there was no cash withdrawal on 10.07.2012 of Rs.3 lakhs + Rs.3 lakhs, rather on 10.07.2012, there is a cash deposit by assessee of Rs.65,500/- and then immediately a Cheque was issued by Assessee having no.538612 of Rs.65,033/-. We specifically asked ld.AR to explain this discrepancy. Then, ld.AR invited our attention to entry dated 16.07.2012 which is a cash withdrawal of Rs.3 lakhs. Also, on 16.07.2012, the Cheque was issued in the name of Mr.Rajesh Bhadane having no.538614 of Rs.3 lakhs. Ld.AR also claimed that the Cheque given to Mr.Rajesh was cash withdrawal by Assessee. Printed from counselvise.com ITA No.2506/PUN/2025 [A] 11 However, we do not accept that Cheque given to Mr.Rajesh was cash withdrawn by Assessee. Ld.AR has not filed any document to prove that Cheque given by Assessee to Mr.Rajesh was for cash withdrawal for assessee’s purpose. 9. We failed to understand why Assessee will withdraw Rs.3 lakhs from The Shirpur People’s Co-operative Bank on 16.07.2012 only to redeposit in Dhule Vikas Sahakari Bank. Both these banks have Cheque facility and Assessee could have very well deposited the Cheque No.538613 which was issued by The Shirpur People’s Co-operative Bank Limited. Therefore, this explanation given by the ld.AR is rejected. 10. In these facts and circumstances of the case, there is no merit in the explanation provided by the Assessee for the impugned cash deposit of Rs.10 lakhs. Accordingly, addition of Rs.10 lakhs is confirmed. 11. Accordingly, Ground No.2 raised by the Assessee is dismissed. Ground No.3 : 12. In the Return of Income, Assessee has shown Gross Agricultural Income at Rs.19,92,671/- and Net Agricultural Income Printed from counselvise.com ITA No.2506/PUN/2025 [A] 12 at Rs.15,61,026/-. During the assessment proceedings, Assessing Officer asked Assessee to prove the said income. The Assessing Officer also called yield statistics from Department of Agriculture. During the Assessment Proceedings, Assessee filed details of Agricultural Land cultivated. The Assessing Officer noted that part of the agricultural land was owned by Nikitha and Atul. Accordingly, Assessing Officer(AO) recalculated the agricultural income and held that net agricultural income could have been Rs.10,15,649/-. Hence, the AO added difference of Rs.5,45,377/- to the Total Income. Before us, ld.AR for the Assessee pleaded that Nikhita and Atul are Assessee’s siblings and there is an agreement between Assessee and his siblings for cultivation of land. Assessee enclosed copy of the agreement at page no.17 to 19 of the paper book. However, on perusal of the assessment order, it is observed that there is no discussion regarding the agreement in the assessment order, therefore, it seems that the agreement was not filed before Assessing Officer. In these facts and circumstances of the case, we set-aside the issue of Agricultural Income to the Assessing Officer for denovo adjudication. Assessing Officer shall provide opportunity of hearing to the assessee. Assessee shall file necessary documents before the Assessing Officer. Printed from counselvise.com ITA No.2506/PUN/2025 [A] 13 Ground No.5 : 13. We have already discussed that Assessing Officer had issued notice u/s.148 dated 21.03.2018 after recording reasons for reopening. Assessing Officer provided opportunity to the assessee. Therefore, the Assessment Order is as per law. Hence, there is no merit in the Ground No.5 raised by Assessee. Accordingly, Ground No.5 is dismissed. 14. Ground No.4 and 6 are general in nature, do not need any adjudication, hence, dismissed. 15. In the result, appeal of the assessee is partly allowed for statistical purpose. Order pronounced in the open Court on 02 February, 2026. Sd/- Sd/- VINAY BHAMORE Dr.DIPAK P. RIPOTE JUDICIAL MEMBER ACCOUNTANT MEMBER पपणे / Pune; ददिधंक / Dated : 02 Feb, 2025/ SGR आदेशकीप्रनिनलनपअग्रेनषि / Copy of the Order forwarded to : 1. अपऩलधर्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. नवभधगऩयप्रनिनिनर्, आयकर अपऩलऩय अनर्करण, “एस एम सऩ” बेंच, पपणे / DR, ITAT, “SMC” Bench, Pune. 6. गधर्ाफ़धइल / Guard File. Printed from counselvise.com ITA No.2506/PUN/2025 [A] 14 आदेशधिपसधर / BY ORDER, / / TRUE COPY / / सहधयक रनिस्ट्रधर /Assistant Registrar आयकर अपऩलऩय अनर्करण, पपणे/ITAT, Pune. Printed from counselvise.com "
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