SH. RAJBIR SINGH,CHANDIGARH V. ITO, W-5(3), CHANDIGARH

MA 5/CHANDI/2025

AI Insights

The case involves an appeal by the assessee, Sh. Rajbir Singh, against the Income Tax Officer Ward-5 (3), Chandigarh, concerning the assessment year 2009-10. The primary issue was the quantum of addition made to the assessee's income based on cash deposits. Initially, the Assessing Officer added Rs.24.55 Lacs on a best judgment basis, which was contested and reduced to Rs.10.50 Lacs by the CIT(A) after considering evidence provided by the assessee. The Tribunal further accepted some of the sources of these deposits but sustained an addition of Rs.7.50 Lacs as agricultural income was not accepted as a source. The Tribunal's recent order corrected a miscalculation in the sustained addition amount.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 828417 (ITAT-CHANDIGARH)
• Duration Of Justice: 11 month(s) 9 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 15-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Chandigarh
• Assessment Year: misc
• Appeal Filed On: 05-02-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIRUDH PARIKSHIT AGGARWAL
• Assessee Lawyers: RANJIT KAUR LD.

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHANDIGARH HYBRID HEARING BEFORE HON’BLE SHRI RAJPAL YADAV, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM M.A. No.5/CHANDI/2025 [In ITA No.576/CHANDI/2019] (िनधाŊरणवषŊ / Assessment Year: 2009-10) Sh. Rajbir Singh C/o Prikshit Aggarwal (CA) H.No. 1238, Sector 22-B, Chandigarh बनाम/ Vs. ITO Ward-5 (3) Sector -17 Chandigarh ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AOIPS-8923-C (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) Revenue by : Sh. Anirudh (Advocate) for Sh. Parikshit Aggarwal (CA) (Virtual) – Ld. AR Assessee by : Dr. Ranjit Kaur (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 14-01-2026 घोषणाकीतारीख /Date of Pronouncement : 15-01-2026 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. By way of this application u/s 254(2), the assessee seeks our indulgence in Tribunal order passed in captioned appeal on 18-11- 2024. The Ld. AR contended that considering the facts of the case, the quantum of addition as sustained by Tribunal should be Rs.5.50 Lacs only and not Rs.7.50 Lacs. The Ld. Sr. DR opposed any interference in the order. Printed from counselvise.com 2 2. From the order of Tribunal, it could be seen that Ld. AO made addition on best judgment basis for Rs.24.55 Lacs for cash deposits. During first appeal, the assessee contended that deposits were merely Rs.12.50 Lacs and in support filed various evidences which were subjected to remand proceedings. Considering the remand report, Ld. CIT(A) upheld addition of Rs.10.50 Lacs. The Tribunal, in para-8, noted that out of deposits of Rs.12.50 Lacs, Rs.7.50 Lacs was stated to be sourced out of agricultural income, Rs.3.45 Lacs were stated to be sourced out of earlier cash withdrawals and remaining Rs.1.55 Lacs were stated to be sourced out of past savings. The sources of Rs.3.45 Lacs and Rs.1.55 Lacs were accepted by Tribunal. However, the source of Rs.7.50 Lacs as agricultural income was not accepted and addition to that extent was sustained in the order. 3. We find that out of sustained addition of Rs.10.50 Lacs by Ld. CIT(A), Tribunal accepted the sources of Rs.5 Lacs and therefore, the remaining impugned addition was Rs.5 Lacs only which could be sustained. The relief of Rs.2 Lacs was already allowed by lower authorities. Therefore, we find that there is mistake in quantifying the sustained addition. Accordingly, the amount of addition as sustained in the order is to be read as Rs.5.50 Lacs instead of Rs.7.50 Lacs. The Ld. AO is directed to re-compute the income of the assessee. The order stand modified to that extent only. Printed from counselvise.com 3 4. The application stand allowed. Order pronounced on 15th January, 2026. -Sd- -Sd- (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 15-01-2026 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 "