SOHAN LAL,SIRSA, HARYANA V. .INCOME TAX OFFICER, WARD-3, SIRSA, SIRSA, HARYANA

ITA 504/CHANDI/2024

AI Insights

The case involves Sohan Lal, the appellant, who appealed against the order of the Commissioner of Income Tax (Appeals) National Faceless Appeal Centre, Delhi, which confirmed an addition of Rs. 15,75,000 as unexplained cash credit in the bank account of the assessee for the Assessment Year 2017-18. The assessee contended that the amount was derived from agricultural income and sale proceeds of agricultural land. The lower authorities had rejected this explanation, leading to the appeal. The Tribunal found that the assessee was not given a proper opportunity to explain the source of the deposits and thus remanded the case back to the Assessing Officer.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 28840 (ITAT-CHANDIGARH)
• Duration Of Justice: 7 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2017-2018
• Appeal Filed On: 02-05-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANJEET KAUR
• Assessee Lawyers: PARIKSHIT AGGARWAL
• Keywords: Unexplained cash credit

Judgement Text

" आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ,चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL ‘SMC’ BENCH, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER आयकरअपीलसं./I.T.A. No. 504/CHD/2024 Ǔनधा[रणवष[ / Assessment Year : 2017-18 Sohan Lal, Vill. Modia Khera, Sirsa, Haryana 125055 बनाम Income Tax Officer Ward-3, Sirsa, Haryana èथायीलेखासं./PAN NO: AKVPL 4546R अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent (PHYSICAL HEARING) Ǔनधा[ǐरतीकȧओरसे/Assessee by : Shri. Parikshit Aggarwal, C.A. राजèवकȧओरसे/ Revenue by : Dr. Ranjeet Kaur, Sr. D.R. सुनवाईकȧतारȣख/Date of Hearing : 12.11.2024 उदघोषणाकȧतारȣख/Date of Pronouncement : 09.12.2024 आदेश/Order The present appeal has been preferred by the assessee against the order passed by the ld. Commissioner of Income Tax, Appeal National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as the “Ld. CIT(A)] dated 01.02.2024 for the Assessment Year: 2017-18. The assessee in this appeal is aggrieved by the action of the ld. CIT(A) in confirming the addition of Rs.15,75,000/- made by the Assessing Officer on account of unexplained cash credit in the Bank account of the assessee. ITA No. 504/CHD/2024 Sohan Lal v. ITO 2 2. The plea of the assessee is that amount in question was out of agricultural income and from the sale proceeds of the agricultural land. The ld. counsel has invited my attention to the relevant para of the impugned order of the ld. CIT(A) to submit that the assessee had duly explained that the aforesaid cash deposits were out of agricultural income and out of sale proceeds of the land of the assessee. He has further demonstrated that even a remand report in this respect was also called upon by the ld. CIT(A) from the Assessing Officer. He has further pointed out to the relevant paras of the remand report to submit that the Assessing Officer has rejected the explanation given by the assessee in a mechanical manner pointing out certain discrepancies relating to the agricultural expenses and also raising the question as to why the assessee had raised loans etc. and as to why the assessee had withdrawn the said amount from his account and redeposited the same. The ld. counsel has submitted that the case of the assessee has not been properly appreciated by the lower authorities. He has submitted that the matter be remanded to the file of the Assessing Officer so that the assessee may demonstrate the entire source of deposits. 3. The ld. DR however has relied upon the findings of the lower authorities. ITA No. 504/CHD/2024 Sohan Lal v. ITO 3 4. After considering the rival submissions and going through records, in my view, the interests of justice will be well served, if the assessee is given an opportunity to present his case before the Assessing Officer. I order accordingly. Needless to say, that the Assessing Officer will give proper opportunity to the Assessee to present his case and to furnish necessary evidences and details. 5. In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced on 09.12.2024. Sd/- (SANJAY GARG) Judicial Member Dated : 09.12.2024 “GP/Sr.PS.” आदेशकȧĤǓतͧलͪपअĒेͪषत/ Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकरआयुÈत/ CIT 4. ͪवभागीयĤǓतǓनͬध, आयकरअपीलȣयआͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[फाईल/ Guard File आदेशानुसार/ By order, सहायकपंजीकार/ Assistant Registrar "