GURMUKH SINGH SANDHU,VPO MANUKE vs. INCOME TAX OFFICER (OSD)-2, JAGRAON

-Chd-2024 Gurmukh Signh Sandhu, Ludhiana 2 2. The Assessee is aggrieved by the action of the ld. CIT(A) in confirming the addition of Rs. 31,89,350/- on account of unexplained cash deposits in the bank accounts of the Assessee. The Assessing Officer during the assessment proceedings noted that the Assessee had deposited an amount of Rs. 31,89,350/- in his bank accounts (Rs. 25,75,000 with Bank of Baroda and Rs. 6,14,350/- in HDFC Bank). The Assessing Officer treated the aforesaid amount as unexplained income of the Assessee and made the impugned addition.

In appeal, the Assessee explained before the CIT(A) that the Assessee was an individual, agriculturist and his only other source of income was interest from saving bank account under the head ‘income from other sources’, besides agricultural income. It was also explained that the Assessee did not enjoy any income which was chargeable to tax as income was much below the taxable limit and as a result, there was no liability to pay advance tax by the Assessee. That the order passed by the Assessing Officer (A.O.) was an ex-parte order as the Assessee could not appear before the A.O. to offer his explanation. It was further pleaded that the Assessee is an illiterate person and did not know nitty-gritties of the tax proceedings.

After hearing the ld. DR, I am of the view that the ld. CIT(A) was not justified in not admitting the appeal of the Assessee for adjudication. The Assessee in this case, from the very beginning has stated that he was an agriculturist and that his income was below taxable limit. Therefore, the ld. CIT(A) was supposed to consider the aforesaid submissions of the Assessee. Every deposit in the bank account cannot always be an income of the Assessee. Therefore, the condition of deposit of advance tax could not be imposed blindly without considering the contention of the Assessee that his income was below the taxable limit. The Assessee, therefore, was required to be given a reasonable opportunity of hearing by the ld. CIT(A). Further, as noted above, the impugned assessment order is also an ex-parte assessment order. In my view, the interests of justice will be well served if, the Assessee is given an opportunity to present his case before the Assessing Officer. Accordingly, the impugned order of the CIT(A) is set -Chd-2024 Gurmukh Signh Sandhu, Ludhiana 4 aside and the matter is restored to the file of the Assessing Officer for de novo assessment.