BAKSHISH SINGH,UDHAM SINGH NAGAR vs. I T O WARD-2(3)(5), KHATIMA

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ITA 124/DDN/2026Status: DisposedITAT Dehradun05 August 2026AY 2019-204 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found no error in the reopening of the assessment. However, due to crucial evidence (invoices for agricultural product sales) submitted by the assessee for the first time, the Tribunal set aside the orders of the lower authorities and remanded the issue back to the AO for fresh examination.

What were the facts?

The assessee, an individual, did not file an income tax return. The Assessing Officer (AO) reopened the assessment based on information about significant cash deposits in the assessee's bank accounts, which the assessee failed to explain. The AO estimated the income and made an addition.

What were the issues?

Whether the reassessment proceedings were validly initiated and whether the estimation of income based on cash deposits was justified, especially in light of new evidence regarding agricultural income.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 144,Section 144B,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DEHRADUN “SMC” BENCH: DEHRADUN

Before: SHRI SATBEER SINGH GODARA & SHRI MANISH AGARWAL

For Appellant: Adv. &
Hearing: 25.05.2026Pronounced: 05.08.2026

IN THE INCOME TAX APPELLATE TRIBUNAL DEHRADUN “SMC” BENCH: DEHRADUN BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER [THROUGH VIRTUAL MODE] ITA No.124/DDN/2026 [Assessment Year : 2019-20] Bakshish Singh vs ITO Kuliya Sitarganj Ward-2(3)(5) Udham Singh Nagar, Udham Singh Nagar, Uttarakhand-262405 Uttarakhand PAN-GRIPS0924L APPELLANT RESPONDENT Assessee by Sh. V. Rajkumar, Adv. & Sh. Saubhagya Agarwal, Adv. Revenue by Sh. Amar Pal Singh, JCIT DR Date of Hearing 25.05.2026 Date of Pronouncement 05.08.2026 ORDER PER MANISH AGARWAL, AM : The present appeal is filed by the assessee against the order dated 05.02.2026 by Ld. Commissioner of Income Tax (A), National Faceless Appeal Centre (“NFAC”), Delhi [“Ld. CIT(A)”] in Appeal No. NFAC/2018-19/10405770 passed u/s 250 of the Income Tax Act, 1961 [“the Act”] arising from the assessment order dated 07.03.2024 passed u/s 147 r.w.s. 144 r.w.s. 144B of the Act pertaining to Assessment Year 2019-20.

2.

Brief facts of the case are that the assessee is an individual and has not filed the return of income. The information as received by the AO that the assessee has made cash deposit of INR 40.00 Lakhs in

ITA No.124/DDN/2026

the bank account maintained with Bank of Baroda and source of which was not explained as no return of income was filed. Therefore, the case was re-opened u/s 147 of the Act by issue of notice u/s 148 on 21.03.2023. The assessee has not complied with any of the notices issued during the course of assessment proceedings, therefore, the assessment was completed ex-parte. The AO has observed that assessee has maintained four (04) bank accounts with the Bank of Baroda having total credits of INR 3,60,57,213/- and total debits of INR 3,66,65,380/- out of which cash deposits were of INR 44,07,200/-. The AO estimated the income by applying 12% of total credit and accordingly, made the addition of INR 43,26,860/-. While estimating the income, AO observed that in the credit entries, narrations were appearing as “Cane Payment” or “Prompt Payment incentive” or “Chini Mill Sitarganj Payment” etc.

3.

Against the said order, assessee filed an appeal before Ld. CIT(A) who vide order dated 05.02.2026, dismissed the appeal of the assessee wherein it was stated the proceedings initiated u/s 148 of the Act were bad in law as no proper opportunities were given to the assessee. Further, with respect to the addition, it was contended by the assessee that he is an agriculturist and sold the agricultural products and the amounts received were deposited in the bank accounts however, in absence of precise details, ld. CIT (A) has confirmed the addition made by the AO.

4.

Aggrieved by the order of Ld. CIT(A), assessee is in appeal before the Tribunal by taking various Grounds of appeal wherein Ground of

ITA No.124/DDN/2026

appeal Nos. 1 & 2 raised by the assessee are with respect to initiation of re-assessment proceedings and Ground of appeal No.3 is with respect to the estimation of income of INR 43,26,865/-.

5.

Heard the contentions of both parties at length and perused the material available on record. From the order of lower authorities, it is observed that AO had the information that the assessee has made cash transactions in the bank account and since no return of income was filed, therefore, after completing the assessment proceedings u/s 148A, notice u/s 148 was issued. We find no error in the re-opening of assessment made by the AO accordingly, Ground of appeal Nos. 1 & 2 raised by the assessee are dismissed.

6.

With regard to the estimation of income as contended by the assessee in Ground of appeal No. 3, after considering the entirety of the facts and material available on record, we find that the assessee has filed copies of invoices for the sale and purchase of agricultural products in the Mandi which he was filed to produce before the lower authorities. Since these evidences are crucial to decide the issue of the source of deposits in the bank account, therefore, they are admitted and in the larger interest of justice, we set aside the order of both the lower authorities and remand the issue to the file of the AO. The AO is directed to pass the order denovo afresh after examine the source of cash deposit in bank and the assessee is also directed to file all necessary details in support of the same. Thus, Ground of appeal No.3 raised by the assessee is allowed for statistical purposes.

ITA No.124/DDN/2026

7.

In the result, appeal of the assessee is partly allowed.

Order pronounced in the open Court on 05.08.2026.

Sd/- Sd/- (SATBEER SINGH GODARA) (MANISH AGARWAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 05.08.2026 *Amit Kumar, Sr.P.S* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT 6. Guard File ASSISTANT REGISTRAR ITAT

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