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Facts
The assessee, an agriculturist, deposited Rs. 10 Lacs during demonetization. The Assessing Officer (AO) added this amount to his income under Section 69A, invoking best judgment assessment as per Section 144. The CIT(A) dismissed the appeal for being delayed.
Held
The Tribunal held that the assessee demonstrated sufficient cause for the delay in filing the first appeal. Furthermore, the cash deposits were proven to be directly linked to the assessee's agricultural income, with no other source of income identified.
Key Issues
Whether the cash deposits had a direct nexus with agricultural income and if the delay in filing the first appeal was condonable.
Sections Cited
144, 69A, 143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH, CHANDIGARH
(िनधा"रण वष" / Assessment Year: 2017-18) Shri Jarnail Singh ITO Nabha Village Dulladi, Nabha बनाम/ Vs. ITO, Near Railway Station, Punjab - 147201 Nabha, Punjab - 147201 "थायीलेखासं./जीआइआरसं./PAN/GIR No. GIKPS-3439-D (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ"कीओरसे/ Appellant by Sh. Neelam Kumar Shahi (Advocate) (Virtual) – Ld. AR : ""थ"कीओरसे/Respondent by : Sh. Vivek Vardhan (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 01-12-2025 घोषणाकीतारीख /Date of Pronouncement 01-12-2025 : आदेश / O R D E R
Aforesaid appeal by assessee for Assessment Year (AY) 2017- 18 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 03-09-2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 144 of the Act on 10-12-2019. In the assessment order, Ld. AO made addition of cash deposit of Rs.10 Lacs. The assessee is stated to be an agriculturist having 6 acres of agricultural land. The assessee deposited cash of Rs.10 Lacs during demonetization period which was added by Ld. AO u/s 69A for want of any compliance by the assessee. The Ld. CIT(A) did not admit the appeal for want of condonation of delay of 4 years and 10 months. Aggrieved, the assessee is in further appeal before Tribunal.
The Ld. AR stated that demand notice and assessment order was served upon one Sh. Mohinder Singh on 12-12-2019 who was wrongly taken as the father of the assessee despite the fact that the assessee’s father had already expired on 05-06-2010. The Ld. AR, with the help of bank statements, also demonstrated that the assessee received agricultural proceeds of Rs.10.52 Lacs through Bank Cheque No.397915 which was deposited in SBI, Nabha Bank Account No.65082341645. On the same date, the assessee withdrew cash of Rs.10.52 Lacs which was deposited in PSB KCC Account No. 0850100000367. The said position could not be controverted by Ld. Sr. DR but he supported the orders of lower authorities.
I am of the considered opinion that the assessee has demonstrated sufficient cause for delay in first appeal. Nevertheless, on merits, it has amply been demonstrated that the cash deposits had direct nexus with the agricultural proceeds as accrued to the assessee. The assessee does not have any other source of income. Therefore, the impugned addition as made by Ld. AO could not be sustained. I order so. 4. The appeal stand allowed accordingly. Order pronounced on 01st December, 2025. - (MANOJ KUMAR AGGARWAL) ACCOUNTANT MEMBER Dated: 01-12-2025 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