NARINDER PAL SINGH,SAMANA vs. ITO-WARD SAMANA, PATIALA

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHANDIGARH HYBRID HEARING BEFORE HON’BLE SHRI LALIET KUMAR, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकर अपील सं. / ITA No.617/CHANDI/2025 (िनधा�रण वष� / Assessment Year: 2011-12) & 2. आयकर अपील सं. / ITA No.687/CHANDI/2025 (िनधा�रण वष� / Assessment Year: 2011-12) Sh. Narinder Pal Singh ITO Ward बनाम/ Vs. Village Rajla Samana, Aaykar Bhawan, Patiala Patiala Punjab – 147101 �ायीलेखासं./जीआइआरसं./PAN/GIR No. EGZPS-5520-N (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Sh. Rakesh Kajla (Advocate) – Ld. AR ��थ�कीओरसे/Respondent by : Dr. Ranjit Kaur (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 07-05-2026 घोषणाकीतारीख /Date of Pronouncement 11-05-2026 : आदेश / O R D E R Per Bench 1. Aforesaid appeals by assessee for Assessment Year (AY) 2011- 12 assails confirmation of quantum addition and levy of consequential penalty u/s 271(1)(c). The quantum appeal ITA No.617/Chandi/2025 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 27-02-2025 in the matter of an

assessment framed by Ld. Assessing Officer [AO] u/s 144/147 of the Act on 28-12-2018. Upon perusal of assessment order, it could be seen that the assessment has been framed on best judgment basis wherein Ld. AO has made addition of cash deposit of Rs.98.90 Lacs. The Ld. CIT(A) did not condone the delay of 248 days and dismissed the appeal of the assessee. Consequently, penalty u/s 271(1)(c) for Rs.29.05 Lacs was levied by Ld. AO on 20-06-2019 which was also confirmed for want of any compliance from the assessee. Aggrieved, the assessee is in further appeals before us. The only prayer of Ld. AR is adjudication of quantum appeal on merits which has been opposed by Ld. Sr. DR. The Ld. AR stated that the assessee is in a position to substantiate the sources of cash deposits. 2. Keeping in mind the principles of natural justice and considering the background of the assessee, we set aside the impugned orders and restore the quantum appeal as well as penalty appeal back to the file of Ld. CIT(A) for de novo adjudication on merits with a direction to the assessee to plead and prove its case. For this, the assessee is directed to plant 200 trees of minimum 4 feet height at nearby vicinity within 60 days from the date of receipt of this order. The proof of the same including photographs and relevant bills / vouchers would be submitted to Ld. CIT(A) who would thereafter proceed for de novo adjudication of the appeals on merits. No other ground has been urged in the appeals.

-Sd- -Sd- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER AS Dated:11-05-2026 आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF

ASSISTANT REGISTRAR ITAT CHANDIGARH