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Facts
The assessee, an individual, did not file a return of income for AY 2012-13. His case was selected for scrutiny based on information about a cash deposit of Rs. 14,00,500/- in his bank account. The AO made a best judgement assessment and addition of this amount due to non-appearance and failure to furnish documents. The assessee claimed the source was the sale of agricultural land on 07.04.2011.
Held
The Tribunal noted that the assessee failed to furnish necessary documents and submissions before the lower authorities, leading to an ex-parte order. The Tribunal decided to remit the grounds raised on merit back to the CIT(A) for fresh adjudication, granting the assessee a reasonable opportunity to present proof of the land sale and sale consideration.
Key Issues
Whether the addition made by the AO on account of unexplained cash deposits was justified without providing a reasonable opportunity to the assessee to produce evidence for the sale of agricultural land.
Sections Cited
250, 147, 144
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Income Tax Appellate Tribunal, SMC BENCH, PUNE
Before: Dr. MANISH BORAD
Assessee by : None Revenue by : Shri Dayanand Jawalikar Date of hearing : 11.06.2025 Date of : 18.06.2025 pronouncement आदेश/ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The present appeal at the instance of assessee is directed against the order of Ld. NFAC, Delhi CIT(A) framed u/s 250 of the Income Tax Act dated 19.03.2025 and is arising out of the Assessment Order passed u/s 147 r.w.s 144 of the Act dated 28.11.2019.
Assessee has raised following grounds of appeal:-
1. On the facts and circumstances prevaling in the case, the Hon'ble Commissioner of Appeal (NFAC) has erred in confirming the addition of Rs. 14,00,500/- made by the Id. AO without justifying the rejection of the source of income in as much as the appelant has sold the agriculture land on 07.04.2011 and the afroresaid amount received in cash has been deposited in the bank account. The appellant being having sufficient source to deposit the money in the bank account the addition made by the Ld. AO of Rs. 14,00,500/-may kindly be deleted. The appellant cound not submit the detail submission before the honorable CIT (A) (NFAC) before passing the order u/s 250, which may kindly be pardoned. The addition made by the AO may kindly be deleted on being submitted the documents before your honour under which the aforesaid amount is received against the sale consideration of land sold by the appellant.
When the case was called none appeared on behalf of the assessee in spite of the fact that valid notice of hearing issued to the assessee on the contact details mentioned in Form 36. With the assistance of Ld. DR and on perusal of records I observe that the impugned order is ex-parte as the assessee failed to furnish necessary documents and submissions before Ld. CIT(A). In the grounds of appeal raised before this Tribunal, payer of the assessee is that if an opportunity is granted then the evidence shall be filed before Ld. CIT(A). Ld. DR did not object if the matter is restored to the file of Ld. CIT(A).
4. I have heard Ld. DR and perused the record placed before me. The assessee an individual did not file the return of income for A.Y. 2012-13. His case selected for scrutiny on the basis of information available with the A.O. about cash deposits of Rs. 14,00,500/- in the Bank account maintained with State Bank of Hyderabad, Manwat, Dist. Parbhani. For non appearance Ld. AO framed best judgement assessment and made addition of Rs. 14,00,500/- and even Ld. CIT(A) did not grant relief as assessee failed to furnish requisite documents. The assessee in the gounds of appeal filed before us has stated that the source of alleged cash deposits is from sale of agricultural land owned by assessee and this sale transactions took place on 07.04.2011 and on the very next day the cash deposited in the Bank Account. However the assessee has admitted that the proof of having sold the agricultural land cannot be filed before the lower authorities.
Considering the facts of the case and also in the larger interest of justice and being fair to both the parties I deem it appropriate to remit back the grounds raised on merit to the file of Ld. CIT(A) for necessary adjudication for which reasonable opportunity of hearing should be granted to assessee and the assessee shall furnish proof of sale of agricultural land as well as the proof of receiving sale consideration including cash sum of Rs. 14,00,500/- If needed Ld. CIT(A) may call for remand report from the Jurisdictional Assessing Officer (JAO). Assessee is also directed to remain vigilant and not to take unnecessary adjournment unless otherwise required for reasonable cause and also update the latest e-mail address and contact details on the Income Tax Portal. Effective Grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 18th day of June, 2025.