HANUMAN PANDEY (HUF),SONBHADRA vs. INCOME TAX OFFICER - 3(5), SONBHADRA

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ITA 19/VNS/2025Status: DisposedITAT Varanasi08 September 2026AY 2011-20125 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the order of the NFAC and restored the file to the Assessing Officer, granting the assessee one more opportunity to present its case. The assessee was cautioned to comply with future directions.

What were the facts?

The assessee, an HUF engaged in agricultural activities, made cash deposits of Rs. 22,00,000/- in its savings bank account. The Assessing Officer reopened the case and made an addition of Rs. 22,00,000/- as unexplained cash deposits after the assessee failed to provide supporting evidence.

What were the issues?

Whether the assessment was bad in law due to lack of proper opportunity and non-consideration of evidence, and if the reopening under Section 147 was justified based on AIR information.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 142(1),Section 144,Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CIRCUIT BENCH (SMC

Before: SHRI. SUDHANSHU SRIVASTAVA

IN THE INCOME TAX APPELLATE TRIBUNAL CIRCUIT BENCH (SMC), VARANASI BEFORE SHRI. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER ITA No.19/VNS/2025 Assessment Year: 2011-12 Hanuman Pandey (HUF) v. Income Tax Officer – 3(5) Mandi Samiti Shop Sonbhadra Robertganj Sonbhadra (U.P) TAN/PAN:AADHH4605R (Appellant) (Respondent) Appellant by: None Respondent by: Shri Deepak Yadav, D.R. O R D E R This appeal has been preferred by the Assessee against the order dated 12.06.2024, passed by the National Faceless Appeal Centre, Delhi (NFAC) for Assessment Year 2011-12.

2.0 The brief facts of the case are that the assessee was an HUF and was engaged in the agricultural activities. In this case, the Income Tax Department was in possession of information that, during the year under consideration, the assessee had made cash deposits to the tune of Rs.22,00,000/- in the Saving Bank Account of the assessee. On the basis of this information, the Assessing Officer (AO) reopened the case of the assessee under section 147 of the Income Tax Act, 1961 (hereinafter called 'the Act’) after issuing notice under section 148 of the Act. However, no return of income was filed by the assessee in

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response to the notice under section 148 of the Act. Thereafter, the AO issued notices under section 142(1) of the Act, requiring the assessee to furnish documentary evidences in support of sources of cash deposits. In response, the assessee furnished reply on 25.05.2018, stating therein that the assessee owned approximately 200 acres of land and that Rs.22.00 lakhs were the agricultural income earned during the last 50 years. The AO, thereafter, issued a detailed questionnaire on 04.10.2018, requiring the assessee to furnish the evidences of crops, expenses, and certificate from the State Government, etc. in support of agricultural income. However, the assessee did not comply with this notice. Thereafter, the AO issued a show cause notice on 13.11.2018, requiring the assessee to show cause as to why an order under section 144 of the Act may not be passed. However, still there was no compliance from the side of the assessee. Therefore, the AO completed the assessment under section 147 read with section 144 of the Act, on the basis of material available on the record, by making an addition of Rs.22,00,000/- on account of unexplained cash deposits in its Bank Account and assessed the total income of the assessee at Rs.22,00,000/-.

2.1 The AO also initiated penalty proceeding under section 271(1)(c) of the Act, separately.

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2.2 Aggrieved, the Assessee preferred an appeal before the NFAC, which dismissed the appeal of the assessee and confirmed the order of the AO by passing an order ex-parte qua the assessee.

2.3 Now the assessee has approached this Tribunal challenging the order of the NFAC, by raising the following grounds of appeal:

1.

That in any view of the matter the assessment made on income of Rs.22 lakhs by the order dated 06.12.2018 passed u/s 147/144 of the IT Act is bad both on the facts and in law. 2. That in any view of the matter the learned CIT Appeal was not correct in passing the order ex-parte without providing reasonable opportunity to the assessee and the order is not speaking order in the eyes of law. 3. That in any view of the matter proceeding as initiated u/s 147 by issue of notice u/s 148 simply on basis of AIR information regarding cash deposit in saving bank account is highly unjustified and there was no proper satisfaction of the Assessing Officer that there was any concealment of income hence entire assessment is bad in law. 4. That in any view of the matter in compliance to notice u/s 148 of the Act return was filed on 26.09.2018 but no cognizance was given to the return filed nor the details filed during assessment proceeding was considered hence the proper procedure under the act was not followed which is highly unjustified.

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5.

That in any view of the matter the cash deposit in bank account of assessee was from definite sources and out of sales of agricultural proceeds but no reasonable opportunity was provided to the assessee nor the matter was properly adjudicated by the Assessing Officer and simply on AIR information addition made amounting to Rs.10 lakhs and his action as confirmed by CIT Appeal NFAC is highly unjustified. 6. That in any view of matter finding an observation of Assessing Officer with regard to addition of Rs.22 lakhs is incorrect and contrary to the actual fact of the case. 7. That in any view of the matter the assessee reserves his rights to take any fresh ground of appeal before hearing of appeal.

3.0 None was present on behalf of the assessee when the appeal was called out for hearing nor was any adjournment application moved in this regard. However, looking into the facts of the case, I proceed to adjudicate the appeal the appeal based on record before me.

4.0 The Ld. Sr. D.R., supporting the orders of the authorities below, submitted that the appeal of the assessee may be dismissed.

5.0 I have heard the Ld. Sr. D.R. and perused the material on record. It is evident that the orders passed by both the authorities are ex-parte qua the assessee. Looking into the facts

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of this case, I am of the considered view that the assessee deserves one more opportunity to present its case and, therefore, I set aside the order of the NFAC and restore this file to the Office of the Assessing Officer with the direction to provide one more opportunity to the assessee to present its case. I also caution the assessee to fully comply with the directions of the Assessing Officer in the set-aside proceedings when called upon to do so, failing which, the Assessing Officer would be at complete liberty to pass the order in accordance with law, based on material available on record even if it is ex-parte qua the assessee.

6.0 In the result, the appeal of the assessee stands allowed for statistical purposes.

Order pronounced in the open Court on 08/09/2026.

Sd/- [SUDHANSHU SRIVASTAVA] JUDICIAL MEMBER DATED:08/09/2026 JJ: Copy forwarded to: 1. Appellant 2. Respondent 3. CIT(A) 4. CIT 5. DR By order

Assistant Registrar/DDO

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