VARINDER SINGH GOSAL,JALANDHAR V. ITO WARD - 4(2) JALANDHAR, JALANDHAR

ITA 427/ASR/2025

AI Insights

The case involves Varinder Singh Gosal, the appellant, who appealed against the order of the CIT (A) NFAC, Delhi, which was based on the order of the ITO, Ward-3(2), Jalandhar. The primary issue was the unexplained cash deposits amounting to Rs.1.03 crores in the appellant's bank accounts during the financial year 2014-15. The Assessing Officer had treated these deposits as unexplained under section 69 of the Income Tax Act, 1961, due to non-compliance with notices. The first appellate authority dismissed the appeal for similar non-compliance. The Tribunal, considering the fresh evidence submitted, decided to remand the case for a fresh assessment, emphasizing the need for verification of the new evidence and proper procedural adherence.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 839735 (ITAT-AMRITSAR)
• Duration Of Justice: 9 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 16-05-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard; Additional evidence; Extension of stay
• Section: 143(3); 142(1); 69

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR (PHYSICAL COURT) BEFORE SH. MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER AND SH. UDAYAN DASGUPTA, JUDICIAL MEMBER I.T.A. No. 427/Asr/2025 Assessment Year: 2015-16 Varinder Singh Gosal 29-30 Dashmesh Nagar, Garha Road, Jalandhar, Punjab 144001 [PAN: ALTPS 9591E] (Appellant) Vs. Income Tax Officer, Ward - 4(2), Jalandhar (Respondent) Appellant by Respondent by : : None (Adjournment application) Sh. Charan Dass, Sr. D. R. Date of Hearing Date of Pronouncement : : 22.01.2026 26.02.2026 ORDER Per Udayan Dasgupta, J.M.: This appeal is filed by the assessee against the order of the ld. CIT (A) NFAC, Delhi dated 21.03.2025 passed u/s 250 of the Income Tax Act, 1961 which has emanated from the order of the ITO, Ward-3(2), Jalandhar dated 15.12.2017 passed u/s 143(3) r.w.s. 144 of the Income Tax Act, 1961. Printed from counselvise.com 2 I.T.A. No. 427/Asr/2025 Assessment Year: 2015-16 2. There was no appearance by the assessee or his counsel on repeated calls either physically or in virtual mode, but an application for adjournment has been filed by the assessee stating that the assessee is in Canada, and he has sought permission for extension of stay, and has requested for adjournment on the said ground. 3. He has also filed a paper book containing 152 (one hundred fifty two) pages, containing documents relating to sale of agricultural lands, information of loans obtained from Tata Capital House Finance, copy of cash flow statement, copies of passport, bank statement of Punjab National Bank and State Bank of India along with various other documentary evidences and has also made an application under Rule 29 of the ITAT Rules, 1963 praying for admission of additional evidences. 4. Considering the grounds of appeal and the materials on record, and the fresh evidence containing of 152 pages, now filed, we proceed to dispose of the case after hearing the ld. D.R because adjournment will serve no purpose, because fresh evidence needs to be verified by the A.O. 5. Brief facts emerging from records are that the assessee has filed his return of income declaring a total income of Rs.2.85 lacs, which has been selected for scrutiny for examination of the source of cash deposited in bank amounting to Rs.1.03 crores, with Punjab National Bank A/c No. xxxxx76915 and in State Bank of India A/c No. xxxxx89915 during the financial year 2014-15 (relevant to the assessment year under Printed from counselvise.com 3 I.T.A. No. 427/Asr/2025 Assessment Year: 2015-16 appeal). Various notices issued from the office of the Assessing Officer has not been complied and in absence of any response to such notices issued and served on the assessee, the assessment has been completed on a total income of Rs.1.06 crores (with an addition of Rs.1.03 crores) by treating the entire cash deposits in bank account as unexplained u/s 69 of the Act. 6. The matter carried in appeal before the ld. first appellate authority has been dismissed for non-compliance to various notices issued from the office of the ld. first appellate authority on various dates even after seeking an adjournment in course of appellate proceedings (as per para 3 of the appellate order) which proves service of notice. In absence of any response or any submission explaining the cash deposit, the appeal has been dismissed without adjudication on merits of the case in absence of any documentary evidences, being filed before the appellate authority. 7. Now, the assessee is in appeal before the Tribunal on various grounds contained in Form No. 36 and the main grievance of the assessee is against valid service of statutory notices u/s 143(2) and 142(1) of the Act, and is aggrieved on account of non- adjudication on the grounds of appeal on the basis of his submission contained in the statement of fact. 8. The ld. DR relied on the order of the ld. CIT(A) and submitted that the additional evidences which the assessee now seek to produce has never been filed or produced Printed from counselvise.com 4 I.T.A. No. 427/Asr/2025 Assessment Year: 2015-16 before the lower authorities and these documentary evidences being produced now after a long gap of 8 (eight) years cannot be accepted at its face value and there are likely chances of the same being manipulated to accommodate the availability of cash required for deposits of the same in bank account. 9. As such, he prayed for sustaining the appellate order (written submissions also filed by the ld. DR is also taken on record). 10. We have heard the ld. DR and considered the materials on record and we find that in course of assessment proceedings, the Assessing Officer has made all possible attempt to serve the notice on the assessee by all possible means, as provided u/s 282, through speed post through affixation but in spite of the same there has not been any response from the assessee. 11. In course of appellate proceedings, notices has been issued on three separate occasions and also in the ITBA portal against which the assessee has sought adjournment, but has never filed the documentary evidences and the requisite details which he has now filed by way of this paper book along with application for admission of additional evidences under Rule 29 of the I.T. Rules, 1963. Even now also the assessee has not appeared and is not represented by his counsel either and has sought for adjournment. However, in the interest of justice, these additional evidences Printed from counselvise.com 5 I.T.A. No. 427/Asr/2025 Assessment Year: 2015-16 consisting of 152 pages now filed before us cannot be ignored altogether but the same cannot be accepted at its face value without verification regarding its authenticity. 12. As such, we set aside the matter back to the files of the Assessing Officer for de- novo fresh assessment after considering the fresh evidences now filed before the Tribunal and to complete the assessment as per procedure, after allowing reasonable opportunity of being heard to the assessee and the assessee is also directed to file the fresh evidence before the AO and to fully co-operate in fresh assessment proceedings. 13. Before concluding, we are of the opinion that there has been intentional neglect on the part of the assessee in furnishing of documentary evidences before the AO and also before the ld. CIT(A) in course of appellate proceedings. There is no reason pointed out by the assessee as to why these documentary evidences (consisting of 152 pages) could not have been filed before the ld. first appellate authority when adjournment has been sought, which indicates that he was fully aware of the ongoing proceedings before the appellate authority and yet chose not to furnish evidence. 14. Considering the neglect and non-co-operative nature of the assessee, we deem it fit and proper to impose a token cost of Rs.10,000/- (ten thousand) payable to the credit of the ‘Prime Minister’s National Relief Fund’ within 30 days from the date of communication of this order (evidence to be filed before JAO). Printed from counselvise.com 6 I.T.A. No. 427/Asr/2025 Assessment Year: 2015-16 15. With the above observations, we remand the matter back to the files of the ld. Assessing Officer for de-novo fresh assessment after considering fresh evidence and allowing proper and reasonable opportunity to the assessee of being heard. 16. We have not expressed any opinion on merits of the case and all issues are left open. 17. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in accordance with Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963 as on 26.02.2026 Sd/- Sd/- (Manoj Kumar Aggarwal) (Udayan Dasgupta) Accountant Member Judicial Member *GP/Sr.PS* Copy of the order forwarded to: (1) The Appellant: (2) The Respondent: (3) The CIT concerned (4) The Sr. DR, I.T.A.T True Copy By Order Printed from counselvise.com "