PURAN CHAND,VILL.BARSO vs. INCOME TAX OFFICER WD-1, BHARATPUR

This appeal at the instance of assessee for the Assessment Year
2011-12 (A.Y.) is directed against the order of Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi [“CIT(A)”], dated 07/09/2023 framed u/s. 250 of the Income Tax Act, 1961 (for short, 'the Act') which is arising out of the assessment order u/s. 144 r.w.s. 147 of the Act dated
12/11/2018. 2. Registry has informed that there is a delay of 439 days, however, as per the assessee, impugned order was served upon him on 06/02/2025 and immediately thereafter assessee has filed the present appeal, before this Tribunal.

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(Puran Chand) has been filed on 11/02/2025, there is no delay in filing the present appeal and I proceed the appeal admit for adjudication.
4. The sole grievance of the assessee is that Ld.CIT(A) has erred in confirming the addition of Rs. 25,48,000/- made by the Ld.AO on account of unexplained cash deposits during the F.Y. 2010-11
relevant to the A.Y. 2011-12. 5. Brief facts of the case are that assessee is an individual.
Based on the information about cash deposits of Rs. 25,48,000/-,
Ld.AO, after receiving prior approval, issued notice u/s. 148 of the Act on 27/03/2018, but there was no compliance. Even on the subsequent notice issued u/s.142(1), the assessee failed to comply, as a result, Ld.AO concluded the reassessment proceedings by passing the best judgment assessment u/s. 144 r.w.s. 147 of the Act making addition for the total cash deposits of Rs. 25,48,000/- found it to be unexplained.
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Aggrieved by the order of the Ld.AO, assessee filed an appeal before the Ld.CIT(A), but failed to succeed. Now, the assessee is in appeal before this Tribunal.
7. Learned counsel for the assessee firstly made arguments challenging the reassessment proceedings u/s.147 of the Act stating that assessment has been reopened without applying mind and no proper enquiry was made. On merits, he submitted that assessee is an agriculturist and sale agreement entered into for sale of family agricultural land on 14/04/2010 and the sale consideration received against the sale agreement has been 3
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(Puran Chand) deposited in the bank account. He also referred to the detailed written submissions placed on record along with copies of agreement, copy of bank passbook; and prayed that no addition deserves to be sustained.
8. On the other hand, ld. DR submitted that assessee had not appeared before the Ld.AO in spite of being served various notices and also the documents which are placed before this Tribunal were not filed before the Ld.CIT(A). He, however, raised no objection if the matter is restored to the file of the Juri ictional AO (JAO) for re-adjudication of the facts of the case.
9. I have heard rival contentions and perused the material placed before me.
10. The assessee is an individual, cash deposits of Rs.25,48,000/- stand deposited in his bank account held with Punjab and National Bank. Admittedly, the assessee is non-filer and is also not filed return incompliance to the notice issued u/s.
148 of the Act and even not appeared before the Ld.AO in spite of being provided sufficient opportunities. Even before the Ld.CIT(A), on first three occasions, assessee did not respond and thereafter furnished few details and the Ld.CIT(A) not satisfied with those details, confirmed the order of the Ld.AO observing as under:-
“5.2 I have considered the submissions made by the appellant on the basis of facts and circumstances of the case along with the order of the AO and perused the material available on record. The A.O.
has made addition of Rs. 25,48,000/- under head income from other sources as during the assessment proceedings the appellant could not submit any evidences before the A.O. During the appellate proceedings, in response to hearing notices, the appellant filed copy of agreement (Notarised on Plain Paper, Stamp Paper is not used) executed on 14.04.2010 regarding proposal to sell agricultural land.

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(Puran Chand)

Such a self-serving agreement may be cancelled at any time at a later date. It is interesting to note that this agreement is not executed on a stamp paper and is also not registered with the Sub-