SHRI KAMTA SAHU, RAIPUR, RAIPUR V. ITO, WARD-1(2), RAIPUR, RAIPUR

ITA 10/RPR/2026

AI Insights

The case involves Shri Kamta Sahu, an agriculturist, who appealed against the addition of Rs.16,90,000 to his income by the A.O under section 69A of the Income Tax Act, claiming it as unexplained money. The A.O had rejected the assessee's explanation that the money was from the sale of agricultural produce, due to lack of satisfactory proof. The CIT(Appeals)/NFAC upheld the A.O's decision, citing absence of an agricultural income certificate. The Tribunal, however, criticized the CIT(Appeals) for not conducting an independent inquiry and for upholding the addition without any substantial evidence of undisclosed income.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 834593 (ITAT-RAIPUR)
• Duration Of Justice: 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Appeal Filed On: 14-01-2026
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYANKA PATEL
• Assessee Lawyers: SAKSHI GOPAL AGRAWAL
• Keywords: Income from undisclosed sources; Source of fund

Judgement Text

"आयकर अपीलȣय अͬधकरण Ûयायपीठ “एक-सदèय” मामला रायपुर मɅ IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH “SMC”, RAIPUR Įी पाथ[ सारथी चौधरȣ, ÛयाǓयक सदèय क े सम¢ BEFORE SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER आयकर अपील सं./ITA No.10/RPR/2026 Ǔनधा[रण वष[ /Assessment Year : 2016-17 Shri Kamta Sahu H. NO.47, Village: Barauda, Dharsiva, Raipur-493 221 (C.G.) PAN: DSHPS7162H .......अपीलाथȸ / Appellant बनाम / V/s. The Income Tax Officer, Ward-1(2), Raipur (C.G.) ……Ĥ×यथȸ / Respondent Assessee by : Shri Sakshi Gopal Agrawal, CA Revenue by : Dr. Priyanka Patel, Sr. DR सुनवाई कȧ तारȣख / Date of Hearing : 04.02.2026 घोषणा कȧ तारȣख / Date of Pronouncement : 05.02.2026 Printed from counselvise.com 2 Shri Kamta Sahu Vs. ITO, Ward-1(2), Raipur (C.G.) ITA No.10/RPR/2026 आदेश / ORDER PER PARTHA SARATHI CHAUDHURY, JM The present appeal preferred by the assessee emanates from the order of the Ld.CIT(Appeals)/NFAC, dated 01.12.2025 for the assessment year 2016-17 as per the grounds of appeal on record. 2. During the course of assessment proceedings, it was observed by the A.O that the assessee had made total cash deposits of Rs.16,90,000/-. The assessee submitted before the A.O that he is an agriculturist and the source of the said cash deposits is from selling of the agricultural produce in the local market. However, since the assessee was not able to prove his contentions to the satisfaction of the A.O, the A.O made an addition of Rs.16,90,000/- on account of unexplained money u/s. 69A of the Act. 3. That before the Ld. CIT(Appeals)/NFAC, the assessee had filed detailed written submissions explaining the cash deposits and reiterated that the source of money is from sale of agricultural produce in the local market. The Ld. CIT(Appeals)/NFAC admits that the assessee had deposited an amount in the bank account from agricultural income for the year under consideration but upheld the addition made by the A.O on the ground that the assessee has not submitted any agricultural income certificate from the concerned authority. In such premises of the Printed from counselvise.com 3 Shri Kamta Sahu Vs. ITO, Ward-1(2), Raipur (C.G.) ITA No.10/RPR/2026 observation, it can only be said that the order passed by the Ld. CIT(Appeals)/NFAC is perverse, arbitrary and bad in law since the Department has accepted that the assessee is an agriculturist and has earned income from sale of agricultural produce in the local market. The Department has not brought out any evidence to suggest any other undisclosed source of income by the assessee. The Revenue is harping upon non-furnishing of “Agricultural Income Certificate from the concerned authority.” It is hard to believe that such evidence exists at all since in the entire country majority of the people are having livelihood through farming and in such scenario, what is the concerned authority who can issue “Agricultural Income Certificate” to each of such persons, is rather anonymous and far beyond human probabilities. 4. The Ld.CIT(Appeals)/NFAC has not conducted any independent inquiry and rejected the submissions of the assessee without also bringing on record any further undisclosed sources of income. That when the Department accepts that the assessee is earing income from agricultural activities, when the Department has not brought on record any evidence regarding undisclosed sources of income, when the Department itself has not conducted any independent inquiry against the claim made as per written submissions filed by the assessee, in such scenario, making Printed from counselvise.com 4 Shri Kamta Sahu Vs. ITO, Ward-1(2), Raipur (C.G.) ITA No.10/RPR/2026 addition by the A.O and upholding the same by the Ld. CIT(Appeals)/NFAC is arbitrary, malicious and bad in law. 5. In view of the aforesaid facts, I set-aside the order of the Ld. CIT(Appeals)/NFAC and direct the A.O to delete the addition from the hands of the assessee while giving effect of this order. 6. As per the above terms grounds of appeal of the assessee are allowed. 7. In the result, appeal of the assessee is allowed. Order pronounced in open court on 5th day of February, 2026. Sd/- (PARTHA SARATHI CHAUDHURY) ÛयाǓयक सदèय/JUDICIAL MEMBER रायपुर / Raipur; Ǒदनांक / Dated : 05th February, 2026. SB, Sr. PS आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant. 2. Ĥ×यथȸ / The Respondent. 3. The Pr. CIT-1, Raipur (C.G.) 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय अͬधकरण, “एक-सदèय” बɅच, रायपुर / DR, ITAT, “SMC” Bench, Raipur. 5. गाड[ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलȣय अͬधकरण, रायपुर / ITAT, Raipu Printed from counselvise.com "