JASDEEP SINGH,NABHA vs. ITO, NABHA

आयकर अपील�य अ�धकरण,च�डीगढ़ �यायपीठ, च�डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘A’ CHANDIGARH BEFORE SHRI LALIET KUMAR, JUDICIAL MEMBER AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 1444/CHD/2025 �नधा�रण वष� / Assessment Year: 2017-18 Jasdeep Singh, The ITO, Sewa Bhawan, Vs Railway Road, Nabha. Nabha. �थायी लेखा सं./PAN NO: ABWPS0914J अपीलाथ�/Appellant ��यथ�/Respondent Assessee by : Shri Ankit Jain, CA Revenue by : Shri Vivek Vardhan, Addl. CIT, Sr.DR Date of Hearing : 14.05.2026 Date of Pronouncement : 18.05.2026

PHYSICAL HEARING O R D E R PER LALIET KUMAR, JM

This is an appeal filed by the assessee feeling aggrieved by the order passed by the ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 16.09.2025 passed for assessment year 2017-18 on the following grounds : 1. That the learned Commissioner of Income Tax (Appeals) erred in law and on facts in dismissing the appeal ex parte without granting proper and effective opportunity of being heard to the appellant. The appellant never received any notice of hearing electronically and hence was prevented by sufficient cause from compliance. The appellant was not aware regarding the notices on the portal.

ITA No.1444/CHD/2025 A.Y.2017-18 2 2. That the order passed u/s 250 of the Income Tax Act, 1961 is bad in law, void ab initio . 3. That the learned CIT(A) has erred in not adjudicating the appeal on merits, despite a valid appeal filed within limitation and despite having full facts and documents available on record. 4. That the addition of Rs.19,35,000/- made u/s 69A of the Act and taxed u/s 115BBE by the AO, being unjustified and contrary to the facts of the case, ought to have been deleted by the learned CIT(A). 5. The appellant craves leave to add, alter, or amend any of the above grounds before or at the time of hearing.

return of income declaring total income of Rs. 33,79,520/-

alongwith agricultural income of Rs. 40,00,000/-. The case was

selected for scrutiny under CASS for verification of cash deposits

made during the demonetization period. Statutory notices u/s

143(2) and 142(1) alongwith questionnaire were issued and

complied with from time to time. The Assessing Officer observed

that the assessee had deposited substantial cash in bank account

maintained with IndusInd Bank during the demonetization period

and the assessee explained the same as being out of agricultural

receipts and rotation of agricultural cash transactions.

explanation furnished by the assessee. The Assessing Officer

observed that though the assessee claimed agricultural income

ITA No.1444/CHD/2025 A.Y.2017-18 3

and filed certain copies of J-Forms and agreements with

cultivators, the explanation regarding immediate availability of

cash and redeposit thereof remained unsupported by cogent

evidence. The Assessing Officer further observed that the pattern

of cash deposits and withdrawals did not satisfactorily establish

the nexus between agricultural receipts and cash deposits made in

the bank account during the demonetization period. Consequently,

the Assessing Officer treated an amount of Rs. 19,35,000/- as

unexplained money u/s 69A of the Act and taxed the same u/s

115BBE of the Act while completing assessment u/s 143(3) dated

24.12.2019.

preferred appeal before the Ld. CIT(A). The grounds raised before

the Ld. CIT(A) challenged the addition of Rs. 19,35,000/- made u/s

69A of the Act and consequent taxation u/s 115BBE of the Act.

CIT(A), notices fixing the appeal for hearing were issued on various

dates. However, none appeared on behalf of the assessee and no

effective compliance was made before the Ld. CIT(A). The Ld. CIT(A)

noted that despite sufficient opportunities, the assessee remained

ITA No.1444/CHD/2025 A.Y.2017-18 4

non-responsive and failed to furnish any supporting evidence or

submissions. Relying upon the decision in the case of Susham

Singla Vs. ACIT and also the judgment of the Hon’ble Supreme

Court in the case of Ashokji Chanduji Thakur vs. PCIT, the Ld.

CIT(A) proceeded to dispose of the appeal on the basis of material

available on record and ultimately dismissed the appeal holding

that the assessee was not interested in pursuing the same.

the assessee submitted that the impugned appellate order has

been passed without proper appreciation of evidence and without

affording an effective opportunity to the assessee. It was contended

that the assessee was having substantial agricultural land and

agricultural income and the cash deposits were duly explainable

from agricultural receipts and cash rotation in agricultural

activities. It was further submitted that the assessee is in

possession of supporting evidences including J-Forms, details of

cultivators and land holdings and the same may kindly be

permitted to be produced before the Assessing Officer. The Ld.

Counsel submitted that in the interest of substantial justice, the

matter may be restored to the file of the Assessing Officer for fresh

ITA No.1444/CHD/2025 A.Y.2017-18 5

adjudication.

supported the orders of the lower authorities and submitted that

sufficient opportunities had already been granted both during

assessment proceedings and appellate proceedings, however the

assessee failed to discharge the burden cast upon him under the

provisions of the Act. It was argued that the assessee adopted a

non-cooperative approach before the authorities below and

therefore no further indulgence was warranted.

material available on record. We have also carefully gone through

the orders of the authorities below. It is observed that the

Assessing Officer made the impugned addition primarily on

account of dissatisfaction regarding explanation furnished by the

assessee in respect of cash deposits made during the

demonetization period. It is further noticed that the Ld. CIT(A)

dismissed the appeal substantially on account of non-prosecution

by the assessee though certain observations on merits were also

made in the appellate order.

ITA No.1444/CHD/2025 A.Y.2017-18 6

appeal requires proper factual verification and examination of

evidences relating to agricultural income, land holdings, J-Forms,

details of cultivators and movement of cash. The principles of

natural justice require that adequate opportunity should be

afforded to the assessee to substantiate his claim with supporting

evidences. At the same time, the conduct of the assessee before

the lower authorities clearly reflects negligence and lack of proper

diligence in pursuing the matter.

case, in the interest of substantial justice, we deem it appropriate

to set aside the impugned order of the Ld. CIT(A) as well as the

assessment order on the issue in dispute and restore the matter

back to the file of the Ld. CIT(A) for de novo adjudication in

accordance with law after affording reasonable and effective

opportunity of being heard to the assessee. The assessee is

directed to fully cooperate in the remand proceedings and furnish

all supporting evidences and explanations as may be called for by

the Assessing Officer.

10.1 However, considering the casual and non-cooperative

ITA No.1444/CHD/2025 A.Y.2017-18 7

conduct of the assessee during the proceedings before the lower

authorities, the restoration of the matter is made subject to

payment of costs of Rs. 3,000/- by the assessee in the PGI Poor

Relief Fund within a period of 30 days from receipt of this order.

The proof of deposit shall be furnished before the Ld. CIT(A) during

the set aside proceedings. In case of failure to deposit the aforesaid

amount, the Ld. CIT(A) shall be at liberty to proceed in accordance

with law on the basis of material available on record.

statistical purposes. Order pronounced on 18th May,2026.

Sd/- Sd/-

(MANOJ KUMAR AGGARWAL) (LALIET KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER “Poonam” आदेश क� �ितिलिप अ�ेिषत/ Copy of the order forwarded to : अपीलाथ�/ The Appellant 1. ��यथ�/ The Respondent 2. आयकर आयु�/ CIT 3. िवभागीय �ितिनिध, आयकर अपीलीय आिधकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 4. गाड� फाईल/ Guard File 5.

सहायक पंजीकार/ Assistant Registrar