SHRI CHARANJIT SINGH,LUDHIANA V. ITO WARD-3(2), LUDHIANA

ITA 292/CHANDI/2020

AI Insights

The case involves Shri Charanjit Singh, an agriculturist, who appealed against the addition of Rs.6 Lacs to his income for the Assessment Year 2009-10, as confirmed by the Commissioner of Income Tax (Appeals)-1, Ludhiana. The addition was initially part of an assessment following a notice under section 148 of the Income Tax Act, due to unexplained cash deposits of Rs.25.50 Lacs. The Tribunal found that the assessee, being an agriculturist and not well-versed with tax proceedings, relied on his legal counsel, and thus, the delay in filing the appeal was condoned. The Tribunal also noted that the cash flow statement provided by the assessee was satisfactory and that the income from agricultural operations was verifiable, leading to a reduction in the addition made.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705982 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2009-2010
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN LD.
• Assessee Lawyers: ASHWANI KUMAR; MUSKAN GARG
• Section: 148

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHANDIGARH PHYSICAL HEARING BEFORE HON’BLE SHRI LALIET KUMAR, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ ITA No. 292/CHANDI/2020 (िनधाŊरणवषŊ / Assessment Year: 2009-10) Shri Charanjit Singh S/o Gurnam Singh Village Jhande Ludhiana-140021 बनाम/ Vs. ITO-Ward-3(2) Aaykar Bhawan, Rishi Nagar, Ludhiana-141001 ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. CYFPM-0023-A (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/Appellant by : Sh. Ashwani Kumar, CA and Ms. Muskan Garg (CA) – Ld. ARs ŮȑथŎकीओरसे/Respondent by : Shri Vivek Vardhan (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 24-06-2025 घोषणाकीतारीख /Date of Pronouncement : आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2009-10 arises out of an order of learned Commissioner of Income Tax (Appeals)- 1, Ludhiana [CIT(A)] dated 04-09-2018 in the matter of an assessment framed by Ld. Assessing Officer (AO) u/s. 143(3)of the Act on 30-11-2016. The sole grievance of the assessee is confirmation of addition of Rs.6 Lacs. The registry has noted delay of 597 days in the appeal, the 2 condonation of which has been sought by Ld. AR. The Ld. Sr. DR has pleaded for dismissal of the appeal. 2. From case records, it emerges that pursuant to receipt of information of cash deposit of Rs.25.50 Lacs by the assessee during this year, the case was reopened and notice u/s 148 was issued. The assessee declared regular income of Rs.1.05 Lacs and agricultural income of Rs.7.50 Lacs. After due consideration of assessee’s replies, Ld. AO accepted source of deposits for Rs.9.50 Lacs and made addition of Rs.16 Lacs for want of satisfactory evidences from the assessee. 3. The Ld. CIT(A) noted that it was accepted fact that the assessee was owner of agricultural land which was used during the year for cultivation of crops. Therefore, income from agricultural operations could not be denied. The income of Rs.50,000/- per acre could be estimated to be arising out of agricultural operations. As per cash flow statement, the assessee had opening cash of Rs.8 Lacs. Total availability of cash in the form of past savings and income from agriculture and receipts from sale of animals could not be doubted. Considering all these facts, Ld. CIT(A) restricted the impugned addition to the extent of Rs.6 Lacs. Still aggrieved, the assessee is in further appeal before us. 4. We find that the assessee is an agriculturist and not well versed with income tax proceedings. He was fully dependent of legal counsel for income tax proceedings and therefore, he could not be penalized for lapse on the part of its counsel for late filing of present appeal. Accordingly, we condone the appeal and admit the appeal. In view of the fact that accumulation from past savings could not be denied and no fault has been 3 found in the cash flow statement of the assessee, we restrict the impugned addition to the extent of Rs.3 Lacs. The Ld. AO is directed to re-compute the income of the assessee. No other ground has been urged in the appeal. 5. The appeal stand allowed for statistical purposes. Order pronounced on (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated 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 "