RAJINDER NEHRA,HARYANA vs. INCOME TAX OFFICER, WARD-1, HARYANA

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 आयकरअपीलसं. / ITA No.1661/CHANDI/2025 (िनधा�रणवष� / Assessment Year: 2012-13) Shri Rajinder Nehra ITO Ward - 1 House No.100, Bhagsar Aaykar Bhawan, Sirsa बनाम/ Vs. V-Paniwala Mota, Sirsa Haryana - 125077 �ायीलेखासं./जीआइआरसं./PAN/GIR No. ACMPN-1674-M (अपीलाथ�/Appellant) (��थ� / Respondent) : अपीलाथ�कीओरसे/ Appellant by : Sh. Parikshit Aggarwal (CA) & Ms. Shruti Khandelwal (Advocate) – Ld. ARs (Virtual) ��थ�कीओरसे/Respondent by : Dr. Ranjit Kaur (Addl. CIT) - Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 19-05-2026 घोषणाकीतारीख /Date of Pronouncement 20-05-2026 : आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2012-13 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 10-09-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 144 r.w.s. 147 of the Act on 04-12-2019. The sole grievance of the assessee is confirmation of addition of cash deposit of Rs.41.90 Lacs. Having heard

rival submissions and upon perusal of case records, the appeal is disposed-off as under. 2. The registry has noted delay of 311 days in the appeal, the condonation of which has been sought by Ld. AR on the strength of condonation petition which is accompanied by an affidavit of the assessee wherein it has been stated that the assessee being an agriculturist was not conversant with the digital and procedural aspects of taxation laws and online compliance mechanisms. The matter was entrusted to the counsel who defaulted in timely filing of the appeal. Finding the same to be reasonable one, we condone the delay and proceed with adjudication of appeal on merits. 3. Pursuant to receipt of information of cash deposit by the assessee in his Canara Bank SB Account No.2050101001911, notice u/s 148 was issued to the assessee on 29-03-2019. The assessee filed return of income and reflected agricultural income of Rs.35.80 Lacs besides income from other sources for Rs.1.40 Lacs. However, Ld. AO rejected the explanation of the assessee and added the amount of Rs.41.90 Lacs as unexplained income of the assessee. The agricultural income as offered by the assessee stood rejected. 4. During first appeal, the assessee, inter-alia, assailed service of notice u/s 148. On merits, it was stated that the assessee was an agriculturist and the deposits were sourced out of agricultural income which was rejected by Ld. AO without any cogent reasons. However, Ld. CIT(A) rejected the legal as well as submissions on merits and

endorsed the assessment against which the assessee is in further appeal before us. 5. The Ld. AR has placed on record copy of Khasra Girdawari evidencing the details and nature of crops cultivated on the agricultural land and extent of land owned and possessed by the assessee during the relevant period. The copy of official Nakal evidencing the ownership of agricultural land held by the assessee and his family members demonstrating the collective holding of substantial land for the claim of agricultural income has also been filed and placed on Page Nos.4 to 28 of Paper Book-II. The copy of summarized land holding statement prepared on the basis of official Nakal showing Khewat No., owner name, total land measuring and assessee’s share therein has also been placed on Page No.29 of the paper-book. The assessee’s share in land holding is very substantial i.e., to the extent of more than 661 Kanals. The copy of cash flow statement evidencing movement of funds during the year in the bank account has also been furnished. Upon perusal of all these documents, it could be well concluded that the assessee was in possession of sufficient and substantial land holding during the relevant period which could generate agricultural income of the magnitude as reflected by the assessee in its return of income. The assessee is not shown to have any other source of income. The perusal of cash flow statement would indicate that the deposits are sourced out of sale of agricultural produce and earlier withdrawals. On these facts, the agricultural income claim of the assessee is to be accepted. Therefore, by deleting the impugned

addition of Rs.41.90 Lacs, we allow corresponding grounds of appeal. The legal ground qua issuance and service of notice u/s 148 and other notices has been rendered infructuous. 6. The appeal stand partly allowed. Order pronounced on 20th May, 2026.

-Sd- -Sd- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER AS Dated: 20-05-2026 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