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Facts
The assessee filed an appeal against an order related to the assessment year 2012-13. The AO reopened the case upon learning that the assessee deposited a large sum in her savings bank account. The AO allowed credit for Rs.58 lakhs as sale consideration from agricultural land but made an addition of Rs.47 lakhs due to lack of explanation.
Held
The Tribunal noted that the AO did not sufficiently rebut the assessee's affidavit and failed to make necessary inquiries from the purchasers. The Tribunal considered the assessee's statement and the potential lack of knowledge of a rustic widow.
Key Issues
Whether the AO conducted adequate inquiry from purchasers before making addition for unexplained income from sale of agricultural land, especially when the assessee is an illiterate widow.
Sections Cited
147
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Income Tax Appellate Tribunal, DELHI BENCHES: G : NEW DELHI
Before: SHRI ANUBHAV SHARMA & SHRI MANISH AGARWAL
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: G : NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER Assessment Year: 2012-13 Sarvat Khanam, Vs CIT, Garhi Hasanpur, NFAC, Nai Nagla, Delhi. Muzaffarnagar, Uttar Pradesh – 247 773 PAN: IYYPK2666E (Appellant) (Respondent) Assessee by : Ms Aparna Tripathi, Advocate Revenue by : Shri Dheeraj Kumar Jaiswal, Sr. DR Date of Hearing : 30.06.2025 Date of Pronouncement : 09.07.2025 ORDER PER ANUBHAV SHARMA, JM:
This appeal is preferred by the assessee against the order dated 30.09.2024 of the Ld. Commissioner of Income-tax (Appeals), NFAC, Delhi.
At the outset, the ld. AR has pointed out about the delay of seven days in filing the appeal and submitted that a condonation application in that regard has been filed. Considering that the delay is not of a substantial period, the same is condoned and the appeal is admitted for hearing.
On hearing both the sides, we find that the assessment order has been passed on the basis that the case of the assessee was reopened as it came into the knowledge of the AO that the assessee had deposited a cash amount of Rs.1,05,00,000/- in the savings bank account. The AO concluded that the assessee had a valid source to the extent of Rs.58 lakhs only which was by way of sale consideration received on account of sale of agricultural land, but, with regard to Rs.47 lakhs, there was no explanation. Therefore, an addition of Rs.47 lakhs was made. The ld. AR has submitted that the assessee is a rustic villager and was not aware as to what was transacted by her husband and written in the sale deed and the land was actually sold for Rs.1,05,00,000/- and the assessee’s husband had received Rs.45 lakh at the time of agreement while Rs.60 lakh was received at the time of sale which have been deposited by him in the bank. The affidavit of the assessee filed before the AO is on record wherein the assessee had deposed that she is a widow and her husband had died on 04.08.2014 and the ancestral land was sold for Rs.1,05,00,000/- to Raghubir Singh and Baljeet Singh of Karnal, Haryana and that earlier, on 05.08.2011 her husband had entered into an agreement to sell and received Rs.45 lakhs which was deposited in the bank account on 27.08.2011. Thereafter, when the sale deed was made on 14.11.2011, then also Rs.60 lakh was received, but, the sale deed as got executed somehow got mentioned receipt of Rs.58 lakhs which was deposited on 14.11.2011 in the bank account. This affidavit dated 17.12.2019 seems to have been given no credence by the AO. 2
Now, being a quasi judicial authority, the ld. AO should have rebutted the on oath statement of the assessee in the form of affidavit by some inquiry and the most appropriate persons to be questioned were the purchasers. When an assessee is admitting that its income was by way of sale of agricultural land, then, some inquiry should have been made from the purchaser too to show otherwise. Especially when the assessee is an illiterate women there is onerous duty on the tax officers to make an inquiry to ensure that the assessee like the present rustic widow does not suffers from lack of knowledge or misrepresentation of facts.
Thus, we consider it an appropriate case to restore the issues on merits as well as on law to the files of the ld. AO who shall take into consideration the affidavit of the assessee and make further inquiries especially from the purchasers and pass an order afresh after giving due opportunity of hearing to the assessee. The appeal is allowed for statistical purposes. Order pronounced in the open court on 09.07.2025. Sd/- Sd/- (MANISH AGARWAL) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 09th July, 2025. dk