RAJPAL SINGH,BULANDSHAHR vs. ITO, BULANSHAHR

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ITA 8637/DEL/2025Status: DisposedITAT Delhi21 January 2026AY 2019-203 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted that the assessee had explained the source of investment amounting to Rs.13,00,000/- as a gift received from his son, which was accepted in the lower appellate proceedings. Regarding the remaining sum of Rs.3,00,000/-, the Tribunal was of the considered view that the possibility of the assessee's accumulated past savings and cash-in-hand could not be altogether denied, keeping in mind the socio-economic status in such cases. Consequently, the impugned addition of Rs.3,00,000/- was deleted. The Tribunal allowed the assessee's appeal.

What were the facts?

The assessee, Sh. Rajpal Singh, is in appeal before the Income Tax Appellate Tribunal (ITAT) against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, for Assessment Year 2019-20. The appeal arises from proceedings under section 147 read with section 143(3) of the Income-tax Act, 1961. The dispute concerns an addition of unexplained investment. The assessee did not appear before the Tribunal, and the case was proceeded ex-parte. The amount in dispute, as initially added by the Assessing Officer, was Rs.10,04,400/-, which was restricted by the CIT(A)/NFAC to Rs.3,00,000/-.

What were the issues?

1. Whether the CIT(A)/NFAC erred in restricting the addition of unexplained investment under section 69 of the Act to Rs.3,00,000/- when the Assessing Officer had made an addition of Rs.10,04,400/-. Assessee's contentions: Not recorded as the assessee did not appear. Revenue's contentions: The learned Senior Departmental Representative argued that the CIT(A)/NFAC had rightly restricted the Assessing Officer's action of adding unexplained investment amounting to Rs.10,04,400/- under section 69 of the Act to Rs.3,00,000/- only, which formed the subject matter of adjudication before the Tribunal.

Which sections of the Income-tax Act were involved?

Section 69,Section 147,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: “SMC” NEW DELHI

Before: SHRI SATBEER SINGH GODARA

Hearing: 21.01.2026Pronounced: 21.01.2026

Date of hearing 21.01.2026 Date of pronouncement 21.01.2026 ORDER This assessee’s appeal for assessment year 2019-20, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2025-26/1081990605(1), dated 24.10.2025 involving proceedings under section 147 r.w.s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Case called twice. None appears at the assessee’s behest. He is accordingly proceeded ex-parte.

2.

Learned departmental representative vehemently argues during the course of hearing that the CIT(A)/NFAC has rightly restricted the Assessing Officer’s action adding unexplained investment amounting to Rs.10,04,400/- under section 69 of the Act to the tune of Rs.3 lakhs only forming subject matter of adjudication before the Tribunal.

3.

I have given my thoughtful consideration to the assessee’s and the Revenue’s respective pleadings all along. There is no dispute that the assessee had explained source of his investment in issue as the sum of Rs.13 lakhs received as a gift from his son which stands accepted in the lower appellate discussion.

4.

Coming to the remaining sum of Rs.3 lakhs herein, this tribunal is of the considered view that possibility of the assesse’s accumulated past savings and cash-in-hand as well as keeping in mind the socio-economic status in such a case could not be altogether denied. The impugned addition stands deleted.

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