RAI VIRENDER SINGH,KAITHAL, HARYANA V. INCOME TAX OFFICER, WARD-1, KAITHAL, KAITHAL, HARYANA

ITA 1033/CHANDI/2025

AI Insights

The case involves an appeal by Shri Rai Virender Singh Mangol Patti against an order from the Commissioner of Income Tax (Appeals), which confirmed an assessment made by the AO on a best judgment basis under section 144 of the Income Tax Act. The assessment was triggered by information about cash deposits amounting to Rs.20.14 lakhs made by the assessee during the demonetization period. The AO treated the return filed by the assessee as invalid due to being filed beyond the prescribed time limit and added a substantial amount to the assessee's income after disallowing the claimed sources of these deposits. The CIT(A) upheld this assessment, leading to the current appeal.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 833389 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Appeal Filed On: 14-08-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: . RANJIT KAUR LD. VIRTUAL
• Assessee Lawyers: ASHOK GOYAL; SIFATPREET SINGH
• Keywords: Set aside; Principle of natural justice
• Section: 144

Judgement Text

"1 ITA No.1033/Chandi/2025 Assessment Year: 2017-18 IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHANDIGARH HYBRID HEARING BEFORE HON’BLE SHRI RAJPAL YADAV, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ ITA No.1033/CHANDI/2025 (िनधाŊरणवषŊ / Assessment Year: 2017-18) Shri Rai Virender Singh Mangol Patti, Ward No.-9, Village Bhagal Kaithal (Haryana) – 136034 बनाम/ Vs. ITO Ward-1 Ambala Road, Kaithal Haryana - 136034 ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. EFBPS-6495-K (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Sh. Ashok Goyal (CA) and Sh. Sifatpreet Singh (Advocate) – Ld. ARs ŮȑथŎकीओरसे/Respondent by : Sh. Dr. Ranjit Kaur (Addl.CIT) – Ld. Sr. DR (Virtual) सुनवाईकीतारीख/Date of Hearing : 03.02.2026 घोषणाकीतारीख /Date of Pronouncement : 04.02.2026 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017- 18 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 11-03-2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 144 of the Act on 27-12-2019. Having heard rival submissions, the appeal is disposed-off as under. Printed from counselvise.com 2 ITA No.1033/Chandi/2025 Assessment Year: 2017-18 2. Pursuant to receipt of information of cash deposits of Rs.20.14 Lacs by the assessee during demonetization period, the case of the assessee was scrutinized wherein the assessee was required to establish the sources of these deposits. The return as filed by the assessee was treated as invalid return being filed beyond the time limit. The assessee attributed the deposits to earlier withdrawals, out of agricultural income and out of sale of trees and buffalo etc. However, these claims largely remained unsubstantiated / unverified. The Ld. AO computed that total credits in the bank accounts were Rs.99,87,033/-. After granting benefit of agricultural income for Rs.5 Lacs, the remaining amount of Rs.94,87,033/- was added to the income of the assessee. The Ld CIT(A) confirmed the assessment for want of any representation from the assessee against which the assessee is in further appeal before us. The Ld. AR stated that the assessee is an agriculturist and he is in a position to substantiate the sources of bank credits. The Ld. Sr. DR pleaded for dismissal of the appeal. 3. Keeping in mind the principles of natural justice, we deem it fit to grant another opportunity to the assessee to substantiate its case. Accordingly, the impugned order is set aside the impugned order and the assessment is restored back to the file of Ld. AO for fresh consideration with a direction to the assessee to plead and prove its case forthwith. No other ground has been urged in the appeal. Printed from counselvise.com 3 ITA No.1033/Chandi/2025 Assessment Year: 2017-18 4. The appeal stands allowed for statistical purposes. Order pronounced on 04th February, 2026. -Sd- -Sd- (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 04-02-2026 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 Printed from counselvise.com "