KARM VIR,JIND, HARYANA vs. ITO. WARD-1, JIND, HARYANA

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ITA 1578/CHANDI/2026Status: DisposedITAT Chandigarh01 September 2026AY 2011-123 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found merit in the assessee's submissions, emphasizing natural justice and the possibility of substantiating the source of funds. The appeals were admitted, and the matters were set aside to the AO for de novo assessment.

What were the facts?

The assessee could not substantiate the source of a cash deposit of Rs. 12.54 Lacs, leading to an addition by the AO and confirmation by the CIT(A). The assessee claimed that documents submitted were not considered and sought to remand the case.

What were the issues?

Whether the AO and CIT(A) properly considered the evidence submitted by the assessee regarding the source of cash deposits, and whether the penalty was rightly imposed.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARING THROUGH: PHYSICAL MODE BEFORE: SHRI MANOJ KUMAR AGGARWAL, AM & SH. RAJESH DAMODARLAL SHARMA, JM आयकर अपील सं./ ITA Nos. 1578 & 1579 /Chd/2026 "नधा"रण वष" / Assessment Year : 2011-12 बनाम Karm Vir, ITO, House No. 5, Block No. 183, Ward 1, Village Pindari, Jind Pindara Tirath Road, District Jind, Haryana 126102 "ायी लेखा सं./PAN NO: BDWPK4414Q अपीलाथ"/Appellant ""थ"/Respondent िनधा"रती की ओर से/Assessee by : Sh. Parikshit Aggarwal (CA) – Ld. AR राज" की ओर से/ Revenue by : Sh. Vivek Varadhan, Addl. CIT, Ld. Sr. DR सुनवाई की तारीख/Date of Hearing : 25.08.2026 उदघोषणा की तारीख/Date of Pronouncement : 01.09.2026

आदेश/Order PER RAJESH DAMODARLAL SHARMA, J.M:

The captioned appeals for Assessment Year (AY) 2011-12 are quantum appeal as well as penalty appeal. ITA No.1578/Chd/2026 is quantum appeal which arises out of an order of ld. Commissioner of Income Tax (Appeals), NFAC [CIT(A)] in the matter of an assessment as framed by Ld. AO u/s 143(3) r.w.s. 147 of the Act on 12.12.2018. 2. At the outset, it was brought to our notice that there is a delay of 379 days, in both the appeals. The Ld. AR has 2 1578-1579-Chd-2026 sought condonation of the same along with a prayer to remand back the appeal to lower authorities which has been opposed by Ld. Sr. DR. The Ld. AR stated that the assessee is in a position to substantiate its case on merits. It is the contention of Ld. AR that the assessee had submitted various documents and details before Ld. AO which were not considered by Ld. AO.

3.

In the assessment order, Ld. AO made addition of cash deposit for Rs.12.54 Lacs since the assessee could not substantiate the source of the same. The Ld. CIT(A) endorsed the assessment for the same very reasons. Aggrieved, the assessee is in further appeal before us.

4.

We find force in the submissions of Ld. AR. Keeping in mind the principles of natural justice and considering the fact that the assessee may be in a position to substantiate the source of cash deposit, we admit the appeal and set aside the impugned order. The matter is restored back to Ld. AO for de novo assessment with a direction to the assessee to plead and prove its case forthwith. The appeal stand allowed for statistical purposes.

5.

In ITA No. 1579/Chd/2026, the assessee assails confirmation of consequential penalty u/s 271(1)(c). Since

3 1578-1579-Chd-2026 quantum appeal has been restored back by us to Ld. AO, this appeal is also admitted and the matter is restored back to Ld. AO for fresh consideration in the light of outcome of quantum appeal. This appeal also stand allowed for statistical purposes.

Both the appeals stand allowed for statistical purposes.

6.

Order pronounced in the open court on 01.09 .2026

- - (MANOJ KUMAR AGGARWAL ) JUDICIAL MEMBER Rkk

आदेशकी"ितिलिपअ"ेिषत/ Copy of the order forwarded to : 1. अपीलाथ"/ The Appellant

2.

""थ"/ The Respondent 3. आयकरआयु"/ CIT 4. िवभागीय"ितिनिध, आयकरअपीलीयआिधकरण, च"ीगढ़/ DR, ITAT, CHANDIGARH 5. गाड"फाईल/ Guard File

सहायकपंजीकार/

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