BALBIR SINGH,PANIPAT vs. ITO, WARD-3, PANIPAT, PANIPAT

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ITA 2354/DEL/2026Status: DisposedITAT Delhi09 July 2026AY 2017-187 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the documentary evidence did not clearly explain the cash deposits or the credit from the hospital. Therefore, the appeal was allowed for statistical purposes to provide the assessee a further opportunity to present evidence to the CIT(A).

What were the facts?

The assessee's appeal concerns additions made by the AO on account of unexplained cash deposits and payments received from a hospital. The CIT(A) had confirmed these additions. The assessee contended that the cash deposits were from agricultural income and the payment from the hospital was related to a leased property.

What were the issues?

Whether the cash deposits in the bank account and the payment received from M/s Apex Hospital were adequately explained by the assessee to avoid additions to income.

Which sections of the Income-tax Act were involved?

Section 144,Section 250,Section 115BBE

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES, NEW DELHI

Before: MSMADHUMITA ROY

आदेश / ORDER The instant appeal filed by the assessee is directed against the order dated 06.01.2026 passed by the Ld. Commissioner of Income-tax (Appeals), NFAC, Delhi [hereinafter referred to as the Ld. CIT(A)] under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) arising out of the Assessment Order dated 18.11.2019 passed by the ITO, Ward 1(13), Panipat (hereinafter referred to as ‘the ld. AO’) the ITO, Ward 1(13), Panipat (hereinafter referred to as ‘the ld. AO’) the ITO, Ward 1(13), Panipat (hereinafter referred to as ‘the ld. AO’)

under Section 144 of the Act for Assessment Year 2017 under Section 144 of the Act for Assessment Year 2017-18. 18.

2.

The grounds raised by the The grounds raised by the assesse read as under:-

“1. That the order of the Ld. CIT (Appeals) is against law and facts. “1. That the order of the Ld. CIT (Appeals) is against law and facts. “1. That the order of the Ld. CIT (Appeals) is against law and facts.

2.

That the Ld. CIT (Appeals) erred in dismissing the appeal of That the Ld. CIT (Appeals) erred in dismissing the appeal of That the Ld. CIT (Appeals) erred in dismissing the appeal of the appellant and in confirming the addition of Rs.9,27,000/- made the appellant and in confirming the addition of Rs.9,27,000/ the appellant and in confirming the addition of Rs.9,27,000/ by the Ld. AO on account of by the Ld. AO on account of cash deposit by the appellant in his cash deposit by the appellant in his bank account.

3.

That the Ld. CIT (Appeals) erred in dismissing the appeal of That the Ld. CIT (Appeals) erred in dismissing the appeal of That the Ld. CIT (Appeals) erred in dismissing the appeal of the appellant and in confirming the addition of Rs.8,20,000/- made the appellant and in confirming the addition of Rs.8,20,000/ the appellant and in confirming the addition of Rs.8,20,000/ by the Ld. AO on account of payment received from M/s Apex by the Ld. AO on account of payment received from M/s Apex by the Ld. AO on account of payment received from M/s Apex Hospital by treating it as unexplained. ating it as unexplained.

4.

That the Ld. CIT (Appeals) erred in dismissing the appeal of That the Ld. CIT (Appeals) erred in dismissing the appeal of That the Ld. CIT (Appeals) erred in dismissing the appeal of the appellant and thereby confirmed the action of Ld. AO in charging the appellant and thereby confirmed the action of Ld. AO in charging the appellant and thereby confirmed the action of Ld. AO in charging tax at the rate of 60 percent u/s 115BBE of the Act, although the tax at the rate of 60 percent u/s 115BBE of the Act, although the tax at the rate of 60 percent u/s 115BBE of the Act, although the amended provision is applicable amended provision is applicable from A.Y. 2018-19 onwards and not 19 onwards and not applicable on A.Y. 2017 applicable on A.Y. 2017-18.

5.

That the appellant craves leave to add, alter, modify, amend That the appellant craves leave to add, alter, modify, amend That the appellant craves leave to add, alter, modify, amend OR withdraw any of the ground of appeal at the time of hearing.” OR withdraw any of the ground of appeal at the time of hearing.” OR withdraw any of the ground of appeal at the time of hearing.”

3.

The Ld. A.O. had completed the assessment upon The Ld. A.O. had completed the assessment upon making making addition of Rs. 9,27,000/- with the following with the following observation: -

“As per Cash Transaction information available with this office, the As per Cash Transaction information available with this office, the As per Cash Transaction information available with this office, the assessee had deposited cash amounting to Rs.18,54,000/ assessee had deposited cash amounting to Rs.18,54,000/- in his Joint in his Joint bank account maintained with Allahabad Bank, Panipat during the bank account maintained with Allahabad Bank, Panipat during th bank account maintained with Allahabad Bank, Panipat during th demonetization period i.e. 9.11.2016 to 30.12.2016 but no return of demonetization period i.e. 9.11.2016 to 30.12.2016 but no return of demonetization period i.e. 9.11.2016 to 30.12.2016 but no return of income was filed in this case. Accordingly, notice u/s 142(1) was issued income was filed in this case. Accordingly, notice u/s 142(1) was issued income was filed in this case. Accordingly, notice u/s 142(1) was issued to the assessee vide this office letter dated 13.03.2018 to file his return of to the assessee vide this office letter dated 13.03.2018 to file his return of to the assessee vide this office letter dated 13.03.2018 to file his return of income on or before 31.03.2018 but income on or before 31.03.2018 but there was no compliance from the there was no compliance from the assessee. As such, as per Board Guidelines proceedings u/s 144 of the assessee. As such, as per Board Guidelines proceedings u/s 144 of the assessee. As such, as per Board Guidelines proceedings u/s 144 of the Income Tax Act,1961 were initiated in this case and notices u/s 142(1) Income Tax Act,1961 were initiated in this case and notices u/s 142(1) Income Tax Act,1961 were initiated in this case and notices u/s 142(1) were issued to the assessee vide this office letter dated 22.04.2019 to were issued to the assessee vide this office letter dated 22.04.2019 to were issued to the assessee vide this office letter dated 22.04.2019 to explain the source of cash deposit made during the F.Y.2016 he source of cash deposit made during the F.Y.2016- -17 relevant to A.Y.2017-18. On 03.05.2019 reply was received in DAK from the 18. On 03.05.2019 reply was received in DAK from the 18. On 03.05.2019 reply was received in DAK from the assessee in which it is contended that the assessee is agriculturist for last assessee in which it is contended that the assessee is agriculturist for last assessee in which it is contended that the assessee is agriculturist for last 30 years and he was not involved in any business a 30 years and he was not involved in any business activities during the ctivities during the F.Y.2016-17, he stated that he had only agricultural income of 17, he stated that he had only agricultural income of 17, he stated that he had only agricultural income of Rs.12,82,916/- in his name for A.Y.2017 in his name for A.Y.2017-18. In connection to the bank 18. In connection to the bank account, it was submitted that the account is a joint bank account with account, it was submitted that the account is a joint bank account with account, it was submitted that the account is a joint bank account with Sh. Mahavir Singh, brother of Sh. Mahavir Singh, brother of the assessee. The statutory notices u/s the assessee. The statutory notices u/s 142(1) were issued from time to time and proceedings were attended by 142(1) were issued from time to time and proceedings were attended by 142(1) were issued from time to time and proceedings were attended by the assessee on 26.08.2019 and 25.09.2019. The assessee filed affidavit the assessee on 26.08.2019 and 25.09.2019. The assessee filed affidavit the assessee on 26.08.2019 and 25.09.2019. The assessee filed affidavit of Sh. Mahavir Singh, his brother in which it is affirmed that the account of Sh. Mahavir Singh, his brother in which it is affirmed that the account of Sh. Mahavir Singh, his brother in which it is affirmed that the account is operated by him and the assessee and he has also deposited the cash is operated by him and the assessee and he has also deposited the cash is operated by him and the assessee and he has also deposited the cash in the bank account.

On perusal of bank statement of the assessee, it is seen that cash of On perusal of bank statement of the assessee, it is seen that cash of On perusal of bank statement of the assessee, it is seen that cash of Rs.18,54,000/- has been deposited in cash in the bank account on has been deposited in cash in the bank account on has been deposited in cash in the bank account on various dates. The assessee various dates. The assessee has submitted Nakal Jamabandi Form for 23 has submitted Nakal Jamabandi Form for 23 acres of land and Form in his name for the period 04.04.2016 to acres of land and Form in his name for the period 04.04.2016 to acres of land and Form in his name for the period 04.04.2016 to 31.12.2016. However, no certified copy of account from Adhtia is 31.12.2016. However, no certified copy of account from Adhtia is 31.12.2016. However, no certified copy of account from Adhtia is furnished by the assessee nor any income and expenditure account in furnished by the assessee nor any income and expenditure account in furnished by the assessee nor any income and expenditure account in respect of agricultural income was filed which could justify that the ultural income was filed which could justify that the ultural income was filed which could justify that the amount has actually been received by the assessee. As such cash deposit amount has actually been received by the assessee. As such cash deposit amount has actually been received by the assessee. As such cash deposit of Rs.9,27,000/- as his share in the Joint Bank account remained as his share in the Joint Bank account remained as his share in the Joint Bank account remained unexplained. Accordingly, an addition of Rs.9,27,000/ unexplained. Accordingly, an addition of Rs.9,27,000/- is made u/ is made u/s 69A of the Income Tax Act,1961 in this case. of the Income Tax Act,1961 in this case.”

4.

Further that upon that upon perusal of the bank statement, it was noticed that perusal of the bank statement, it was noticed that

the assessee has received credit entries worth Rs.8,20,000/ the assessee has received credit entries worth Rs.8,20,000/- in the name of in the name of

M/s Apex Hospital, the assessee in his reply submitted on 25 M/s Apex Hospital, the assessee in his reply submitted on 25.09.2019 stated .09.2019 stated

that he had given the property on rent to Vipin Singhal and Kuldeep Rathi that he had given the property on rent to Vipin Singhal and Kuldeep Rathi that he had given the property on rent to Vipin Singhal and Kuldeep Rathi

who thereafter merged his property and r merged his property and ran the Apex hospital, he has n the Apex hospital, he has

received this amount from them for payment of interest of Rs.8,20,000/- received this amount from them for payment of interest of Rs.8,20,000/ received this amount from them for payment of interest of Rs.8,20,000/

against loan raised by hi against loan raised by him on this property.

5.

Interest certificate received from HBA which can prove that he had nterest certificate received from HBA which can prove that he had nterest certificate received from HBA which can prove that he had

made payment on account of interest of Rs.7,69,168/ made payment on account of interest of Rs.7,69,168/- on borrowed capital on borrowed capital

for property at Apex Hospital, Sanoli Road y at Apex Hospital, Sanoli Road, though asked for by the Ld. hough asked for by the Ld.

A.O.nothing was submitted. A.O.nothing was submitted. Further, information was called for under , information was called for under

Section 133(6) of the IT Act,1961 from the M/s Apex Hospital regarding 133(6) of the IT Act,1961 from the M/s Apex Hospital regarding 133(6) of the IT Act,1961 from the M/s Apex Hospital regarding

nature of deposit of Rs.8,20,000/ nature of deposit of Rs.8,20,000/- in the account of the assessee but the account of the assessee but the

same remained uncomplied with uncomplied with and the payment of Rs.8,20,000/ payment of Rs.8,20,000/- received

from Apex Hospital as remained unexplained remained unexplained the same was the same was added to the

total income of the assessee. total income of the assessee.

6.

Before the Ld. CIT(A) t Before the Ld. CIT(A) the appellant filed submissions dated submissions dated

16.03.2021, 23.04.2024, 09.10.2024 16.03.2021, 23.04.2024, 09.10.2024 and 05.12.2025 and furnished copies furnished copies

of Demand notice issued by Debt Recovery Tribunal and decisions held by of Demand notice issued by Debt Recovery Tribunal and decisions held by of Demand notice issued by Debt Recovery Tribunal and decisions held by

the Debt Recovery Tribunal, dropping the proceedings under SARFAESI Act, the Debt Recovery Tribunal, dropping the proceedings under SARFAESI Act, the Debt Recovery Tribunal, dropping the proceedings under SARFAESI Act,

Settlement Letters on dues pending with UCO bank, Letters of withdrawal of Settlement Letters on dues pending with UCO bank, Letters of withdrawal of Settlement Letters on dues pending with UCO bank, Letters of withdrawal of

UCO bank’s charges on mortgaged property, ITR filed on 24.09.2019 UCO bank’s charges on mortgaged property, ITR filed on 24.09.2019 UCO bank’s charges on mortgaged property, ITR filed on 24.09.2019

declaring exempt agricultural income of Rs. 7,69,750/ declaring exempt agricultural income of Rs. 7,69,750/-, FIR copy in respect , FIR copy in respect

of accusation of the appellant, against alleged owners of M/s Apex Hospital, of accusation of the appellant, against alleged owners of M/s Apex Hospital, of accusation of the appellant, against alleged owners of M/s Apex Hospital,

J Forms, Declaration letter issued b J Forms, Declaration letter issued by the Allahabad bank regarding the y the Allahabad bank regarding the

payment dues of loan etc. Regarding the cash deposits made in the joint payment dues of loan etc. Regarding the cash deposits made in the joint payment dues of loan etc. Regarding the cash deposits made in the joint

account of the appellant, the appellant stated the sale proceeds of the account of the appellant, the appellant stated the sale proceeds of the account of the appellant, the appellant stated the sale proceeds of the

agricultural produce were deposited in this joint account and mentioned agricultural produce were deposited in this joint account and mentioned agricultural produce were deposited in this joint account and mentioned

some names of the parties involved in the sale deal. The appellant has names of the parties involved in the sale deal. The appellant has names of the parties involved in the sale deal. The appellant has

furnished the copies of J Forms and Jamabandi Form (document showing furnished the copies of J Forms and Jamabandi Form (document showing furnished the copies of J Forms and Jamabandi Form (document showing

the ownership and cultivation details of a land) before this office. The the ownership and cultivation details of a land) before this office. The the ownership and cultivation details of a land) before this office. The appellant has however, nowhere submitted any det appellant has however, nowhere submitted any details in respect of expenses ails in respect of expenses

incurred on cultivation or certified copy of registered account from the incurred on cultivation or certified copy of registered account from the incurred on cultivation or certified copy of registered account from the

respective Adhtia. Thus, in the absence of proper submissions by the respective Adhtia. Thus, in the absence of proper submissions by the respective Adhtia. Thus, in the absence of proper submissions by the

appellant, the cash deposits to the tune of Rs. 9,27,000/ appellant, the cash deposits to the tune of Rs. 9,27,000/- - remain un-

explained.

7.

With regard to the receipt of Rs. 8,20,000/ th regard to the receipt of Rs. 8,20,000/- from the M/s Apex Hospital, from the M/s Apex Hospital,

the appellant has stated that his property was leased to the M/s Apex the appellant has stated that his property was leased to the M/s Apex the appellant has stated that his property was leased to the M/s Apex

Hospital and loan taken on this property became Non Hospital and loan taken on this property became Non-Performing Asset in Performing Asset in

due course of time. Further, the appellant due course of time. Further, the appellant has stated that, when this has stated that, when this

property was about to be auctioned as per proceedings under the SARFAESI property was about to be auctioned as per proceedings under the SARFAESI property was about to be auctioned as per proceedings under the SARFAESI

Act, M/s Apex Hospital in order to save the property from being auctioned, Act, M/s Apex Hospital in order to save the property from being auctioned, Act, M/s Apex Hospital in order to save the property from being auctioned,

had deposited cash of Rs. 8,20,000/ had deposited cash of Rs. 8,20,000/- in the loan account held by the in the loan account held by the

appellant. The appellant has submitted a copy of letter from the Allahabad he appellant has submitted a copy of letter from the Allahabad he appellant has submitted a copy of letter from the Allahabad

Bank saying that the appellant has an account towards the mortgage of Bank saying that the appellant has an account towards the mortgage of Bank saying that the appellant has an account towards the mortgage of

property. However, the same does not particularly mention that the loan was property. However, the same does not particularly mention that the loan was property. However, the same does not particularly mention that the loan was

taken for the purpose of leasing a property to taken for the purpose of leasing a property to the M/s Apex Hospital or any the M/s Apex Hospital or any

such interest is paid by the M/s Apex Hospital on account of interest on the such interest is paid by the M/s Apex Hospital on account of interest on the such interest is paid by the M/s Apex Hospital on account of interest on the

said borrowed loan. Thus, the receipt of Rs. 8,20,000/ said borrowed loan. Thus, the receipt of Rs. 8,20,000/- in the hands of in the hands of

appellant remain un-explained. explained. However, these documentary evidences documentary evidencesdoes

not clearly show the reasons for the Cash Deposits of Rs. 9,27,000/ the reasons for the Cash Deposits of Rs. 9,27,000/- or for the reasons for the Cash Deposits of Rs. 9,27,000/

the credit by M/s Apex Hospital of Rs. 8,20,000/ the credit by M/s Apex Hospital of Rs. 8,20,000/- in the account of the in the account of the

appellant. In that view of the matter the addition was In that view of the matter the addition was, therefore, fore, confirmed

by the Ld. CIT(A).

8.

At the time of hea of hearing of the instant appeal, the Ld. Counsel ring of the instant appeal, the Ld. Counsel

appearing for the assessee initially sought for time to file paper bookwhich appearing for the assessee initially sought for time to file paper appearing for the assessee initially sought for time to file paper

wasrejected by us having regard to this having regard to this particularly aspect of the matter that aspect of the matter that

the assessee has not been able to file the assessee has not been able to file effective documentary evidences in documentary evidences in

support of the reason for cash deposit of Rs. 9,27,000/ support of the reason for cash deposit of Rs. 9,27,000/- or that the credit by or that the credit by

M/s Apex Hospital of Rs. 8,20, M/s Apex Hospital of Rs. 8,20,000/- in the account of the appellant appellant and,

therefore, in order to prevent prevent the miscarriage of justice, we would like to gi would like to give

a further opportunity to the assessee to justify its a further opportunity to the assessee to justify its case by adducing further by adducing further

evidences to the Ld. CIT(A) in support of cash deposit to the Ld. CIT(A) in support of cash deposit and credit by M/s credit by M/s

Apex Hospital of Rs. 8,20,000/ 8,20,000/-. Thus, the appeal is disposedof of by remitting

the issue to the file of the the CIT(A) to decide the same afresh and the Ld. CIT(A) afresh and the Ld. CIT(A)

is further directed to obtain a Remand Report from the Ld. A.O., once the is further directed to obtain a Remand Report from the Ld. A.O., once the is further directed to obtain a Remand Report from the Ld. A.O., once the

requisite details as above are furnished by the assessee before him. The Ld. requisite details as above are furnished by the assessee before him. The Ld. requisite details as above are furnished by the assessee before him. The Ld.

CIT(A) is further directed to pass a CIT(A) is further directed to pass a reasoned order in accordance with law. order in accordance with law.

9.

In the result, appeal In the result, appeal filed by the Assessee is allowed for statistical the Assessee is allowed for statistical purpose.

Order pronounced in the open court on Order pronounced in the open court on 09.07.2026.

Sd/- MADHUMITA ROY MADHUMITA ROY JUDICIAL MEMBER JUDICIAL MEMBER

Dated:09th July, 2026. DK/R.Naheed Sr. PS Copy to: BALBIR SINGH, NEAR SHOP RAGHUBIR SAINI, VPO NEAR SHOP RAGHUBIR SAINI, VPO RAJA KHERI, TEHSIL & DISTT. RAJA KHERI, TEHSIL & DISTT. 1 PANIPAT, PANIPAT-132103, 132103, HARYANA ITO, WARD-3, PANIPAT, 3, PANIPAT, 2 INCOME TAX OFFICE, PANIPAT INCOME TAX OFFICE, PANIPAT, PANIPAT-132103, HARYANA HARYANA 3 THE PCIT / CIT, 4 THE D.R., ITAT, DELHI DELHIBENCH 5 GUARD FILE

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