NARENDER SINGH,SONEPAT V. ITO WARD-69(4), DELHI

ITA 4099/DEL/2025

AI Insights

The case involves Narender Singh, the appellant, who appealed against the order of the ld. NFAC, Delhi, which pertained to the assessment year 2012-13. The primary issue was the addition of 52,30,000 as unexplained income, which was identified from cash deposits in a bank account. The Assessing Officer (AO) had initially added this amount to the income of the assessee under section 69A of the Income Tax Act, due to the absence of any income tax return filed for the relevant assessment year and lack of explanation for the source of these deposits. The CIT(A) upheld this addition, leading to the present appeal. The Tribunal, after considering the explanations and evidence provided, including the joint ownership of the bank account and the source of the deposits being agricultural land sales, decided to partly allow the appeal.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 834613 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2026
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: G
• Assessment Year: 2012-2013
• Appeal Filed On: 27-06-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MANISH GUPTA
• Assessee Lawyers: RANO JAIN
• Keywords: Unexplained cash credit
• Section: 144

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘G’ BENCH, NEW DELHI BEFORE MS. MADHUMITA ROY, JUDICIAL MEMBER, AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 4099/DEL/2025 [A.Y. 2012-13] Shri Narender Singh Vs. The I.T.O 105, Badh Malik, Rai Ward -69(4) Sonepat, Haryana New Delhi PAN – AXQPS 8879 L (Applicant) (Respondent) Assessee By : Ms. Rano Jain, Adv Ms. Mansi Jain, Adv Shri Siddharth, Adv Shri Tanishq Ahuja, Adv Department By : Shri Manish Gupta, Sr. DR Date of Hearing : 13.01.2026 Date of Pronouncement : 04.02.2026 ORDER PER NAVEEN CHANDRA, ACCOUNTANT MEMBER:- This appeal by the assessee is directed against the order of the ld. NFAC, Delhi dated 18.04.2024 pertaining to A.Y 2012-13. Printed from counselvise.com ITA No. 4099/DEL/2025 [A.Y. 2012-13] Narender Singh Vs ITO Page 2 of 6 2. The ld. counsel for the assessee has filed an application for condonation of delay. Having perused the condonation petition, we find that the reason for delay in filing the appeal is that the accountant of the assessee who looked after the assessment proceedings of the assessee left the job and did not intimate the assessee about the intimation of notices. Hence the delay in filing the appeal for which he has filed an affidavit, to be plausible and the assessee has sufficient cause for not filing the appeal in time. Accordingly, we condone the delay and admit the appeal. 3. Brief facts of the case are that the AO received an information/data from banking authorities, that the assessee has made cash deposits amounting to Rs.52,30,000/- in Bank Account of State bank of India. Further, the AO found that during the year under consideration, the assessee has not filled any ITR for A.Y. 2012-13. As the assessee did not offer any explanation regarding any other source of income or source of cash generation, the Assessing Officer held the cash deposit of Rs.52,30,000/- as unexplained income of the assessee and added the same to the income of the assessee along with interest amounting to Rs. 68,336/- u/s 69A of the Act u/s 144 of the Act. Printed from counselvise.com ITA No. 4099/DEL/2025 [A.Y. 2012-13] Narender Singh Vs ITO Page 3 of 6 4. Aggrieved, the assessee went in appeal before the ld. CIT(A) who confirmed the addition made by the Assessing Officer. Now the aggrieved assessee is before us. 5. Before us, the ld. counsel for the assessee vehemently stated that the said account in the SBI was in the joint name of the grandfather of the assessee Late Shri Puran Mal and the assessee. It was vehemently argued that the cash deposits were made in the said SBI account by the grandfather of the assessee in the year 2011, which relates to cash withdrawn in 2005. It was further stated that the grandfather of the assessee expired on 29.03.2014. The said amount was deposited by his grandfather out of consideration received from sale of agricultural land. 6. On the other hand, the ld. DR strongly stated that the cash deposited in 2011 has its roots in the sale of agricultural land made in the year 2005, cannot be considered as satisfactory explanation for cash deposits in 2011 and therefore, the addition may be sustained. 7. We have heard the rival submissions and have perused the relevant material on record. We find that the assessee in support of his claim has filed a copy of Bank pass book. We find that the said Bank account is in joint name of Puran Mal and the assessee. We also find that in the year 2005, there was credit of Rs. 89,10,375/- on 12.09.2005 in the said bank Printed from counselvise.com ITA No. 4099/DEL/2025 [A.Y. 2012-13] Narender Singh Vs ITO Page 4 of 6 account SBI which was withdrawn on various dates being 13.09.2005 to 28.10.2005. The assessee has attempted to explain the cash withdrawal in the year 2005 as source from which cash deposit of Rs. 52 lakhs was made from 23.09.2011 to 03.11.2011. 8. In the instant case, we find that the assessee has attempted to prove the entire source of cash deposit as sales proceeds from agricultural land made five years ago. Although the assessee, prima facie, appears to have discharged its onus of explaining source of cash deposit, it’s contentions to prove the source, hardly deserves to be accepted in entirety especially when the claim was not substantiated with any supportive documents/evidence. On the other hand, the Revenue’s endeavour to disbelieve the assessee’s contention that cash deposit are unexplained cash credits, cannot be fully justified. Considering the person having agricultural land and agricultural activities and who are not required to maintain proper books of account to account for such cash credits, the possibility of cash balance being kept in hand cannot be ruled out. In this factual matrix, there is some element of failure to explain some of the cash deposit, cannot be ruled out. Be that as it may, it is deemed appropriate, in larger interest of justice, that a lump-sum addition of cash Printed from counselvise.com ITA No. 4099/DEL/2025 [A.Y. 2012-13] Narender Singh Vs ITO Page 5 of 6 credit of ₹ 10 lakh only would be just and proper with a rider that the same shall not be treated as a precedent, so as to cover all loopholes. 9. In the result, the appeal of the assessee in ITA No. 4099/DEL/2024 is partly allowed. The order is pronounced in the open court on 04.02.2026. Sd/- Sd/- [MADHUMITA ROY] [NAVEEN CHANDRA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 4th February, 2026. VL/ Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) Asst. Registrar, 5. DR ITAT, New Delhi Sl No. PARTICULARS DATES 1. Date of dictation of Tribunal Order 2. Date on which the typed draft order is placed before the Dictating Member 3. Date on which the typed draft order is placed before the other Member [in case of DB] 4. Date on which the approved draft order comes to the Sr. P.S./P.S. 5. Date on which the fair Order is placed before the Dictating Member for sign 6. Date on which the fair order is placed before the other Member for sign [in case of DB] Printed from counselvise.com ITA No. 4099/DEL/2025 [A.Y. 2012-13] Narender Singh Vs ITO Page 6 of 6 7. Date on which the Order comes back to the Sr. P.S./P.S for uploading on ITAT website 8. Date of uploading, inf not, reason for not uploading 9. Date on which the file goes to the Bench Clerk 10. Date on which the file goes for Xerox 11. Date on which the file goes for endorsement 12. The date on which the file goes to the Superintendent for checking 13. Date on which the file goes to the Assistant Registrar for signature on the order 14. Date on which the file goes to the dispatch section for dispatch the Tribunal order 15. Date of Dispatch of the Order 16. Date on which the file goes to the Record Room after dispatch the order Printed from counselvise.com "