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Facts
The assessee, a dealer of Idea Cellular, filed an ITR for AY 2018-19, which was selected for limited scrutiny. The AO identified a large deposit of Rs. 8.94 Cr in Punjab National Bank, leading to an addition of Rs. 8,94,80,550/- to his income. The assessee contended that this was due to a bank error where a single transaction was repetitively added, but the AO finalized the assessment without verification, and the CIT(A) provided no relief.
Held
The Tribunal, considering new evidence including a bank certificate correcting errors and Form 26AS submitted by the assessee, set aside the orders of both the AO and the CIT(A). The matter was restored to the file of the AO for verification of these documents, especially the bank certificate confirming no deposit of Rs. 8.94 Cr as alleged, and to re-determine the assessee's income.
Key Issues
Whether the alleged deposit of Rs. 8.94 Cr in the assessee's bank account was genuinely made or resulted from a repetitive addition due to a bank error, leading to an incorrect addition as unexplained deposit to the assessee's income.
Sections Cited
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Income Tax Appellate Tribunal, DIVISION BENCH, ‘B’ CHANDIGARH
Before: SHRI RAJPAL YADAV & SHRI MANOJ KUMAR AGGARWAL
O R D E R PER RAJPAL YADAV, VP
The assessee is in appeal against the order of ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 17.12.2024 passed for assessment year 2018- 19.
Though the assessee has taken six grounds of appeal but his grievance revolves around a single issue, namely, A.Y.2018-19 2 on account of a mistake committed by the Bank, a single transaction has been added repetitively to the total income of the assessee.
3. The brief facts of the case are that assessee has filed his return of income electronically on 18.09.2018 declaring total income of Rs.4,66,890/-. His case was selected to limited scrutiny. According to the AO, it is discernable that assessee has made a huge deposit of Rs.8.94 Cr in the name of Walia Enterprises and Sohan Lal Walia in Punjab National Bank. The case of the assessee is that he is a dealer of Idea Cellular. Most of the business was done in cash. His turnover is only Rs.1,54,40,710/- on which he has earned commission income. The bank has multiplied this transaction which has indicated this huge deposit. But, without verifying these aspects, the AO has finalized the assessment and made the addition of Rs.8,94,80,550/-.
Appeal to the ld. CIT (Appeals) did not bring any relief to the assessee.
During the course of hearing, ld. counsel for the assessee has submitted annexures wherein he has A.Y.2018-19 3 demonstrated as to how bank has issued a certificate correcting all these errors. He also filed Form 26AS.
With the assistance of ld. Representative, we have gone through the record carefully. Though a huge demand has been raised against the assessee on account of alleged unexplained deposits but it is pertinent to note that complete documents have not been filed by the assessee before the authorities below. According to the ld. counsel for the assessee, he was in the process of collecting all these documents and could not submit them in time. Considering this new evidence, first time brought before the Tribunal, we deem it appropriate to set aside both the impugned orders and restore this issue to the file of AO for verification of these documents, most particularly, the certificate issued by the bank that assessee has not deposited Rs.8.94 Cr in the bank as alleged by the AO. Accordingly, we set aside both the orders and restore these issues to the file of AO who will re-examine all these details and re-determine the income of the assessee. The assessee will be at liberty to A.Y.2018-19 4 file any evidence before the AO in support of his explanation.
In view of the above, appeal of the assessee is allowed for statistical purposes. Order pronounced on 09.02.2026.