RANJEET SINGH PANAICH,VPO NANGAL KHURD V. INCOME TAX OFFICER, JAGRAON

ITA 31/CHANDI/2024

AI Insights

This case involves an appeal by the assessee, Ranjeet Singh Panaich, against the order of the CIT(A)/NFAC, Delhi, which confirmed the addition of Rs. 23,41,000 as unexplained cash deposit in the assessee's bank account. The original assessment was completed under section 144 r.w.s 147 of the Income Tax Act, 1961, where the AO taxed the unexplained deposit. The assessee contended that the deposit was from the sale proceeds of agricultural land, which should not be classified as a capital asset under section 2(14) of the Act. The assessee also argued that the assessment and appellate orders were passed ex-parte without proper notice, as the notices were only accessible on the IT Portal, which the assessee could not access due to lack of technical knowledge. The Tribunal admitted the additional evidences provided by the assessee and remitted the matter back to the AO for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107787 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANJEET KAUR
• Assessee Lawyers: RUPESH NAGPAL; C.A
• Keywords: Opportunity of being heard; Additional evidence; Reasonable cause
• Section: 147; 148; 144; 250; 69A; 2(14)

Judgement Text

"आयकर अपीलीय अिधकरण,च᭛डीगढ़ ᭠यायपीठ “एस.एम.सी” , च᭛डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCHES, “SMC” CHANDIGARH HEARING THROUGH: PHYSICAL MODE ᮰ी िवᮓम ᳲसह यादव, लेखा सद᭭य BEFORE: SHRI. VIKRAM SINGH YADAV, AM आयकर अपील सं./ ITA No. 31/CHD/2024 िनधाᭅरण वषᭅ / Assessment Year : 2012-13 Ranjeet Singh Panaich C/o C.A Rupesh Nagpal, House No. 1459, Sector 40B UT, Chandigarh, 160040 बनाम The ITO Ward-2, Jagraon ᭭थायी लेखा सं./PAN NO:DGZPS8520R अपीलाथᱮ/Appellant ᮧ᭜यथᱮ/Respondent िनधाᭅᳯरती कᳱ ओर से/Assessee by : Shri Rupesh Nagpal, C.A राज᭭व कᳱ ओर से/ Revenue by : Dr. Ranjeet Kaur, Sr. DR सुनवाई कᳱ तारीख/Date of Hearing : 01/01/2025 उदघोषणा कᳱ तारीख/Date of Pronouncement : 20/01/2025 आदेश/Order PER VIKRAM SINGH YADAV, AM: This is an appeal filed by the assessee against the order of the Ld. CIT(A)/ NFAC, Delhi dt. 17/11/2023 pertaining to Assessment Year 2012-13 wherein the assessee has taken the following grounds of appeal: 1. “That on the facts, circumstances and legal position of the case, the Worthy CIT(A), NFAC in Appeal No. CIT (A), Ludhiana 3/0403/2019-20 has erred in passing order dtd. 17/11/2023 in contravention of provisions of S. 250 of the Income Tax Act, 1961 (hereinafter referred to as \"Act\"). 2. That on law, facts and circumstances of the case, the Worthy CIT(A) has erred in confirming the action of Ld. AO in initiating, continuing and concluding the impugned re-assessment u/s 147 r.w.s. 148 of the Act. 3. That on facts, circumstances and legal position of the case, Worthy CIT(A) has erred in confirming the addition made by the Ld. AO of Rs. 23,41,000/- by erroneously holding cash deposit in bank during the relevant period as unexplained, even when the same was deposited out of the sale proceeds of the Agriculture Land (which has a distance of more than 2 eight kilometres, from the local limits of municipality or cantonment board) of the appellant. 4. That on facts, circumstances and legal position of the case, the order passed by Ld. AO u/s 147 and then by Worthy CIT(A) u/s 250 deserves to be quashed since the same has been passed without affording reasonable opportunity of being heard to the appellant. 5. That the appellant craves leave for any addition, deletion or amendment in the grounds of appeal on or before the disposal of the same.” 2. Briefly the facts of the case are that the assessment in this case was completed under section 144 r.w.s 147 of the Act vide order dt. 25/11/2019 wherein the AO has brought to tax a sum of Rs. 23,41,000/- under section 69A of the Act in absence of any explanation submitted by the assessee to explain source of the said deposit in his bank account, which on appeal, has been sustained by the Ld. CIT(A) and against the said findings, the assessee is in appeal before us. 3. During the course of hearing, the Ld. AR submitted that both the assessment order as well as the order passed by the Ld. CIT(A) have been passed ex-parte qua the assessee. It was submitted that assessee did not receive any notice either from the AO or from the office of the Ld. CIT(A) and the notices have only been sent on the IT Portal and which could not be assessed by the assessee due to lack of technical knowledge. It was further submitted that the source of the cash deposit is out of the sale of the agriculture land jointly owned by the assessee alongwith his mother and in this regard, the assessee wishes to place on record copy of the sale deed executed on 02/06/2011 for Rs. 36,00,000/- as well as certificate from the Revenue authority certifying the land sold does not satisfy the criteria to be classified as a capital asset under section 2(14) of the Act. It was submitted that given the fact that the assessee was prevented from sufficient cause from making necessary compliance before the AO as well as the Ld. CIT(A), the assessee wishes to place on record the copy of the sale deed, the certificate and the bank 3 statement by way of additional evidence and the same may be admitted and matter may be remitted to the file of the AO for necessary verification. 4. The Ld. DR is heard who has relied on the order of the lower authorities. At the same time, it was submitted that where the Bench so decide, the additional evidences need to be verified and the matter may be remitted to the AO. 5. After hearing both the parties and considering the material available on the record, I find that where the proceedings have been completed u/s 144 and the assessee has explained the reasonable cause for non-compliance due to non-receipt of notices, the aforesaid additional evidences which the assessee seeks to submit deserve to be admitted as the same goes to the root of the matter and the same are hereby admitted and the matter is remitted to the file of the AO to examine the same and taking into consideration the explanation which the assessee seek to furnish, decide the matter afresh as per law after providing reasonable opportunity to the assessee. 6. In the result, appeal of the Assessee is allowed for statistical purposes. (Order pronounced in the open Court on 20/01/2025 ) Sd/- िवᮓम ᳲसह यादव (VIKRAM SINGH YADAV) लेखा सद᭭य / ACCOUNTANT MEMBER AG Date: 20/01/2025 आदेश कᳱ ᮧितिलिप अᮕेिषत/ Copy of the order forwarded to : 1. अपीलाथᱮ/ The Appellant 2. ᮧ᭜यथᱮ/ The Respondent 3. आयकर आयुᲦ/ CIT 4. िवभागीय ᮧितिनिध, आयकर अपीलीय आिधकरण, च᭛डीगढ़/ DR, ITAT, CHANDIGARH 5. गाडᭅ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "