PIARE LAL,SHIMLA V. INCOME TAX OFFICER, WARD-1, SHIMLA

ITA 1023/CHANDI/2024

AI Insights

The case involves an appeal by Shri Piare Lal against the order of the Commissioner of Income Tax (Appeals), which confirmed the addition of Rs.80.82 Lacs as unexplained income for the Assessment Year 2020-21. The addition was initially made by the Assessing Officer under sections 144 and 144B of the Income Tax Act, due to a typographical error in the assessee's return, where agricultural income was mistakenly entered as Rs.80.82 Lacs instead of Rs.8.08 Lacs. The Tribunal, after reviewing the documents provided by the assessee, including bank statements and land documents, accepted the assessee's claim of inadvertent error and directed the re-assessment of the agricultural income at Rs.8.08 Lacs.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 360998 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2020-2021
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANJIT KAUR LD.
• Assessee Lawyers: M. R. SHARMA LD
• Section: 144

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHANDIGARH BEFORE HON’BLE SHRI LALIET KUMAR, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं. / ITA No.1023/CHANDI/2024 (िनधाŊरणवषŊ / Assessment Year: 2020-21) Shri Piare Lal S/o Beli Ram Lahola (Churath) Madhwani Kumarsain Shimla HP-171213. बनाम/ Vs. ITO Ward Shimla Shimla (HP) ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AFJPL-6723-M (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Shri M. R. Sharma (Advocate) – Ld. AR ŮȑथŎकीओरसे/Respondent by : Dr. Ranjit Kaur (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 19-05-2025 घोषणाकीतारीख /Date of Pronouncement : 20-05-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2020-21 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 31-07-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 144 r.w.s. 144B of the Act on 25-09-2022. The sole grievance of the assessee is confirmation of addition of cash deposit for Rs.80.82 Lacs. The Ld. AR asserted that certain typographical error occurred in the return of income which led to 2 impugned additions in the hands of the assessee. Having heard rival submissions and upon perusal of case records, the appeal is disposed- off as under. 2. It emerges that in its return of income, the assessee claimed agricultural income of Rs.80.82 Lacs. Accordingly, the assessee was required to file explanation with respect to agricultural income. The assessee, inter-alia, claimed that agricultural income was inadvertently entered as Rs.80.82 Lacs instead of Rs.8.08 Lacs. However, rejecting the same, Ld. AO assessed the same as unexplained income. The Ld. CIT(A) confirmed the assessment for want of any further explanation from the assessee. Aggrieved, the assessee is in further appeal before us. 3. The Ld. AR filed various documents viz. bank statement, copy of apple sale account, copy of jamabandi of land as well as copies of Income Tax Returns for AYs 2015-16, 2019-20 & 2021-22 to demonstrate that the assessee earned agricultural income in all the years. It was stated that substantial income was received through banking channels and the income was inadvertently claimed as Rs.80.82 Lacs instead of Rs.8.08 Lacs. The Ld. Sr. DR opposed any interference in the impugned orders. 4. Upon perusal of all these documents, it could be seen that the assessee has declared agricultural income of Rs.4.12 Lacs in AY 2015- 16, agricultural income of Rs.8.20 Lacs in AY 2019-20 and agricultural income of Rs10.28 Lacs in AY 2021-22. Thus, the agricultural income has always been less than Rs.10.50 Lacs in all three years. In this 3 year, the perusal of copy of sale account of apple would show that the assessee has earned income in that range only. The substantial sale proceeds are received through banking channels. The agricultural holding is substantiated by land documents as placed on record. On these facts, in our considered opinion, the assertion made by the assessee is to be accepted. It appears to be a case of inadvertent error only. Accordingly, we delete impugned addition of Rs.80.82 Lacs. The agricultural income would be assessed at Rs.8.08 Lacs. The Ld. AO is directed to re-compute the income of the assessee. 4. The appeal stand allowed in terms of our above order. Order pronounced on 20-05-2025. Sd/- Sd/- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER लेखा सद˟ /ACCOUNTANT MEMBER Dated: 20-05-2025. आदेश की Ůितिलिप अŤेिषत / Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT CHANDIGARH "