Facts
The assessee filed an appeal against the CIT(A)'s order which upheld an addition of Rs.1,20,000/- out of Rs.5,68,000/- and Rs.1,20,000/- made by the AO on account of unexplained cash deposit. The addition was sustained for assessment year 2015-16.
Held
The Tribunal restored the issue to the file of the CIT(A) with a direction to decide afresh after providing the assessee an opportunity to submit additional documents like Khasra and other records to prove agricultural activity and its proceeds.
Key Issues
Whether the Khatauni alone is sufficient proof of agricultural activity, or if additional documents like Khasra are required, and whether the assessee should be given an opportunity to produce them.
Sections Cited
147, 144C(3), 69A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, LUCKNOW BENCH ‘B’, LUCKNOW
Before: SHRI SUBHASH MALGURIA & SHRI NIKHIL CHOUDHARY
2015-16 against the impugned appellate order dated 29/04/2025 (DIN & Order No.ITBA/APL/S/250/2025- 26/1075872443(1) of Commissioner of Income Tax (Appeals) [“CIT(A)” for short].
The facts of the case, in brief, are that the Assessing Officer completed the assessment and passed assessment order on 25/05/2023 under section 147 read with section 144C(3) of the I.T. Act by making addition of Rs.5,68,000/- and Rs.1,20,000/- on account of unexplained cash deposit under section 69A of the I.T. Act. Aggrieved with the order dated 25/05/2023, the assessee carried the matter in appeal before the learned CIT(A). The learned CIT(A) vide impugned appellate order dated 29/04/2025 has deleted the addition of Rs.5,68,000/- and upheld the addition of Rs.1,20,000/-. Now the assessee is in appeal before the Income Tax Appellate Tribunal against the sustenance of addition of Rs.1,20,000/-.
During the course of hearing, learned A.R. for the assessee submitted that while sustaining the addition of Rs.1,20,000/-, learned CIT(A) has not considered the Khatauni, submitted by the assessee, as the sufficient proof that the actual agriculture activity was performed on the land owned by the assessee. Learned A.R. for the assessee requested that if learned CIT(A) is not considering the Khatauni as sufficient proof for agricultural activity, the assessee may be provided opportunity to produce additional records such as Khasra and other documents to establish the proof that the land was actually cultivated and proceeds were deposited. Learned Departmental Representative supported the orders of the authorities below.
We have heard the rival parties and have gone through the material placed on record. The learned CIT(A) has rejected the claim of the assessee on the ground that the assessee has submitted copy of Khatauni only reflecting the ownership of land in his name. However, learned CIT(A) has mentioned in his impugned appellate order that the assessee has neither submitted copy of Khasra to show that the field was actually cultivated nor did he furnish any receipt of sale of agriculture produce or expense vouchers relating to purchase of seeds, fertilizer, confirmation letter from purchaser of the agriculture produce, mandi receipts etc. In view of the aforesaid, the issue in dispute is restored back to the file of the learned CIT(A) with the direction to decide the issue afresh in accordance with law after providing reasonable opportunity to the assessee and after considering the documents such as Khasra and other records to be submitted by the assessee during appellate proceedings.
In the result, the appeal of the assessee is allowed for statistical purposes.
(Order pronounced in the open court on 03/12/2025)