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Facts
The assessee, an agriculturist, filed a NIL return. The case was selected for scrutiny following cash deposits during demonetization, leading the AO to assess Rs. 27,89,000 as unexplained money under Section 69A of the Act via an order under Section 144. The CIT(A) confirmed the AO's order ex-parte after disregarding the assessee's request for adjournment to avail the Vivad Se Vishwas Scheme.
Held
The Tribunal acknowledged the assessee's intent to prosecute the appeal and admitted additional evidence (J Forms, jamabandi, bank statements) as germane to the issue. The matter concerning the quantum addition and the related penalty proceedings under Section 271AAC(1) and Section 272A(1)(d) were set aside and remanded to the AO for fresh examination, verification, and decision after providing a reasonable opportunity to the assessee.
Key Issues
Whether the addition of unexplained cash deposits under Section 69A was justified; whether additional evidence could be admitted at the appellate stage; and whether the penalty levies should be sustained.
Sections Cited
144, 69A, 271AAC(1), 272A(1)(d)
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आयकर अपीलीय अिधकरण,च"डीगढ़ "यायपीठ “एस.एम.सी” , च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCHES, “SMC” CHANDIGARH HEARING THROUGH: HYBRID MODE "ी िव"म "सह यादव, लेखा सद"य BEFORE: SHRI. VIKRAM SINGH YADAV, AM आयकर अपील सं./ TO 660/Chd/2025 िनधा"रण वष" / Assessment Year : 2017-18 Parminder Singh बनाम The ITO C/o VV Bhalla & Company, Ward 3(1) SCF-39, Rishi Nagar Main Ludhiana Market, Ludhiana "ायी लेखा सं./PAN NO: FCGPS6720C अपीलाथ"/Appellant ""यथ"/Respondent िनधा"रती क" ओर से/Assessee by : Shri Pankaj Bhalla, C.A(Virtual) राज"व क" ओर से/ Revenue by : Shri Vivek Vardhan, Addl. CIT, Sr. DR सुनवाई क" तारीख/Date of Hearing : 21/08/2025 उदघोषणा क" तारीख/Date of Pronouncement : 22/08/2025 आदेश/Order PER VIKRAM SINGH YADAV, AM These are three separate appeals filed by the Assessee against the respective orders of the Ld. CIT(A)/NFAC, Delhi each dt. 07/03/2025 pertaining to Assessment Year 2017-18.
During the course of hearing, the Ld. AR submitted that the assessee is an agriculturist and had filed NIL return of income. The case of the assessee was selected for scrutiny to examine cash deposited during the demonetization period and thereafter, the assessment order was passed under section 144 wherein the AO brought to tax an amount of Rs. 27,89,000/- as unexplained money under section 69A of the Act.
Against the order of the AO, the assessee carried the matter in appeal before the Ld. CIT(A). It was submitted during the course of appellate proceeding, the assessee requested the Ld. CIT(A) to adjourn the matter on the ground that the assessee is contemplating to avail the benefit of Vivad Se Vishwas Scheme. However the Ld. CIT(A) disregarded the request and proceeded to pass the ex-parte order.
It was submitted that as the assessee could not finally opt for the Vivad Se Vishwas Scheme and is serious about prosecuting the present appeal, the assessee be allowed one more opportunity and the matter be restored to the file of the Ld. AO. In this regard, it was submitted that that the assessee wishes to placed on record the additional evidence in the form of J Forms, copy of jamabandi and bank statements to substantiate the nature and source of cash deposits and has moved an application seeking permission to submit the aforesaid additional evidence. It was submitted that in the interest of substantial justice, the additional evidences which are germane to the issue under consideration be admitted and the matter may be restored to the file of the Ld. AO for necessary examination/verification.
The Ld. DR has been heard who has relied on the order passed by the AO as well as of the Ld. CIT(A). At the same the Ld. DR did not raised any specific objection where the matter is remanded back to the file of the Ld. AO.
Heard both the parties and considered the material available on the record. It is noticed that the AO has brought to tax a sum of Rs. 27,89,000/- as unexplained deposits in the bank account maintained by the assessee as the assessee failed to explain the nature and source of such deposit and thereafter, the Ld. CIT(A) has confirmed the order of the AO and has dismissed the appeal ex-parte qua the assessee. On merits, no finding has been recorded either by the AO or by the Ld. CIT(A). Given that assessee has come forward and serious about prosecuting the matter and has also submitted the additional evidence which, I find, germane to the issue under consideration, I deem it appropriate to admit the additional evidence so submitted and restore the matter to the file of the AO to examine the additional evidence so submitted by the assessee and after calling for any further/information as required decide the matter afresh as per law. Needless to say, the assessee shall attend to the proceedings and shall submit necessary information/documents and is at liberty to raise necessary contentions available under law.
In light of the aforesaid where the matter in the quantum proceedings is set aside to the file of the AO, the other two matters relating to levy of penalty u/s 271AAC(1) and u/s 272A(1)(d) are also set aside to the file of the AO to decide the same afresh as per law after providing reasonable opportunity to the assessee.
In the result, all the appeals of the assessee are allowed for statistical purposes.