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Facts
The assessee's assessment for AY 2017-18 was framed under Section 144 (best judgment), resulting in an addition of Rs.10.02 Lacs for cash deposits. The CIT(A) sustained an addition of Rs.7.02 Lacs after allowing partial relief. The assessee appealed, seeking to admit additional evidence and claiming to be an agriculturist capable of substantiating the deposits.
Held
The tribunal, considering principles of natural justice and the additional evidences, restored the appeal to the CIT(A) for a de novo adjudication of the Rs.7.02 Lacs addition. The assessee was directed to plead and prove its case forthwith before the CIT(A).
Key Issues
Whether additional evidence should be admitted and considered by the CIT(A) for re-adjudication of a cash deposit addition made during a best judgment assessment under Section 144, especially when the assessee claims to be an agriculturist.
Sections Cited
144
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Income Tax Appellate Tribunal, “SMC” BENCH, CHANDIGARH
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 08-07-2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 144 of the Act on 24-11-2019. In the assessment order, Ld. AO made addition of cash deposit for Rs.10.02 Lacs. The Ld. CIT(A), considering assessee’s submissions, allowed partial relief of Rs.3 Lacs but sustained addition of Rs.7.02 Lacs. Aggrieved, the assessee is in further appeal before us. The Ld. AR seeks admission of additional evidences. It has been stated that the assessee is an agriculturist and would be in a position to substantiate the remaining deposits. The Sr. DR has opposed any interference in the impugned order.
Keeping in mind the principles of natural justice and considering the additional evidences as filed by Ld. AR, I am inclined to accept the prayer of Ld. AR. Accordingly, the appeal is restored back to Ld. CIT(A) for de novo adjudication of addition of Rs.7.02 Lacs with a direction to the assessee to plead and prove its case forthwith.
The appeal stands allowed for statistical purposes. Order pronounced on 27th November, 2025.