RADHESHYAM,VILLAGE SEVDA , ASHTA vs. COMMISSIONER OF INCOME-TAX (APPEALS), DELHI

6.1. In Ground No. 2 to 4, the appellant challenged the addition of Rs. 12,85,000/-citing that the AO made the addition of the entire cash deposit in the bank account ignoring the outgoings from the Bank account. From the assessment order, it is apparent that the outgoings or withdrawals from the bank account are not in question. It is the cash deposit of Rs.12,85,000/-, which is required to be explained. The appellant had not explained the cash deposit before the AO during assessment proceedings resulting in an ex-parte order. Now, the appellant even during the appellate proceedings has not furnished any evidence or written submission explaining the sources of the cash deposits in the bank account concerned. Explanation to the satisfaction of the AO is necessary in the case where any cash deposits are found to be credited in the books of the appellant u/s 68 of the Act. As held in the assessment order, the appellant has furnished any explanation is.

6.2. In the case of Roshan Di Hatti v. CIT [1977] 107 ITR 938 (SC) and Kale Khan Mohammad Hanif v. CIT[1963] 50 ITR 1 (SC) the Hon'ble Supreme Court has stipulated that the onus of providing the source of a sum of money found to have been received by an assessee is on him. Where the nature and source of a receipt, whether it be of money or of other property, cannot be satisfactorily explained by the assessee, it is open to the revenue to hold that it is the income of the assessee and no further burden lies on the revenue to show that the income is from any particular source. TAX DEPAR

6.3. In view of the above, it is apparent that the cash deposits of Rs. 12,85,000/-were not satisfactorily explained either during the assessment proceedings or the appellate proceedings. Hence, I am not inclined to interfere with the decision of the Assessing Officer. Accordingly, above grounds of appeal No. 2 to 4 are dismissed.

Page 3 of 9 2.3 That the assessee being aggrieved by the “impugned order” has preferred the instant second appeal before this Tribunal and has raised following grounds of appeal in the Form No.36 against the “impugned order” which are as follows:-

“1. That the notice issued u/s 148 on the basis of reasons recorded u/s 147 be held to be bad in law and unjustified on the facts of the case 2. That the learned AO be held to have erred in assessing the entire cash deposits made in the Bank Account as income ignoring the outgoings from the Bank Account.

3. That the income assessed at Rs. 12,85,000/-and confirmed by the CIT(A) be held to be bad and unjustified on the facts and in the circumstances of the case. The income assessed be quashed and deleted.

4. In the alternative and without prejudice to the grounds stated above, the income assessed at Rs. 12,85,000/- be held to be high and exorbitant and may be reduced”.

Page 4 of 9 condonation of delay filed on record of this tribunal. It is averred therein that the assessee is an illiterate individual living in a remote village. He is ignorant about income tax laws and procedure. No return of income was filed by him. He is not having a PAN card. It averred further that he does not understand anything about e-proceedings and faceless assessment procedures and that he is not in the habit of viewing his e-mail on a daily basis. It is only when the assessee received the penalty order u/s 271(1)(c) of the Act dated 02.07.2024 that it came to his knowledge that the appeal filed against the assessment order u/s 147 r.w.s. 144 of the Act has been dismissed by the Ld. CIT(A). The assessee has averred that the delay is unintentional and that the same should be condoned.

There was no malafide intention or willful negligence in filing the present appeal belatedly. It was finally requested that the delay may be condoned and present appeal be admitted. His affidavit dated 06.08.2025 is perused too in the support. Per contra we requested the Ld. DR to give his say to which he stated that the revenue has no objection if the delay is condoned. We therefore basis aforesaid condone the delay and admit the appeal.

Page 5 of 9 3.2 Thereafter we have carefully perused the written submission placed on record by the assessee which we reproduce as below:- “Your Honor,

This is an appeal against the order u/s 250 r.w.s. 144/147 dated 27/12/2023 made by CIT(A), NFAC, Delhi. The appellant is an illiterate individual living in a remote village Sewada. He is a small-time trader in cloth, hosiery etc. doing business at Village Haats. He is having a Saving Bank A/c No. 3879000100041902 with Punjab National Bank, Ashta. The sales are made by the appellant in cash and the cash collections are deposited by him in the aforesaid Bank Account. The appellant has little knowledge about the Income Tax Law and its procedures and was therefore totally ignorant about it. He was not even having a PAN Card, During F.Y. 2007-08 the cash sales deposited by him in his aforesaid Bank Account were Rs.12,85,000/-. The cash deposited was utilized in making payments for purchases. All payments for purchases were made through cheques. The appellant is not maintaining accounts.

Due to cash deposits in Bank, notice u/s 148 was issued on 19/03/2015. Later, notice u/s 142(1) was also issued. Due to his ignorance, no compliance was made by the assessee. The learned AO therefore completed the Assessment u/s 144 r.w.s.147 and assessed the total income of the appellant at Rs.12,85,000/-. Ignoring the out-flow from the aforesaid Bank Account all cash deposits were assessed as income.

The assessment made is disputed. The appellant did not even record the date of service of the assessment order. Later, when the appellant contacted a counsel at Ashta with the assessment order, he was advised to file an appeal. Application for his PAN was made, and after receiving the PAN, an appeal before the CIT(A) was filed.

Similarly, unaware about the e-proceedings and faceless assessment procedures the appellant was not in a habit to view his email regularly. Consequently, he missed the hearing notices and failed to comply with them. The Honourable CIT(A) subsequently completed the Appellate Proceedings u/s 250 r.w.s. 144/147 confirming the assessed total income of the appellant at Rs.12,85,000/-.

Aggrieved with the appellate order, the appellant has filed this appeal before the Honourable ITAT, Indore Bench. It is feared that the appeal is out of time and therefore an application for condonation of delay is being made separately. It is requested that the delay may please be condoned and the appeal may kindly be admitted. It is submitted that since the Assessment Order u/s 144 r.w.s. 147 and the Appellate Order u/s 250 were both made ex-parte. In the interest of justice, it is humbly prayed that the case of the appellant be remanded back to either the Learned AO or the Learned CIT(A) to decide the matter afresh on the merits. This will provide a reasonable opportunity to the appellant to represent his case and will enable him to file all necessary documentary evidences and submissions. The appellant is inclined to fully cooperate in the assessment/ appellate proceedings”.

Per contra in response to the above written submission of the assessee, the Ld. DR stated that the revenue has no objection if the matter is relegated back to the file of the Ld. A.O on denovo basis with direction to the assessee to provide all the information to the Ld. A.O and to cooperate with the department.

4.3 We basis records of the case and after hearing and upon examining the rival contentions are of the considered opinion that the “impugned order” should be set aside as both the assessee and Ld. DR seems to be on same page. We accordingly set aside the “impugned order” as and by way of remand back to the file of Ld. A.O on denovo basis with the direction to the assessee to give all the information to the Ld. A.O and to cooperate with the department.

5.2 In the result appeal of the assesse is allowed for statistical purpose. Order pronounced in open court on 30.09.2025.