JASPREET SINGH,KARNAL vs. ITO-WARD-2-KARNAL, KARNAL

O R D E R PER MAHAVIR SINGH, VP: This appeal has been filed by the Assessee against the order of Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [“Ld. CIT(A)”, for short], dated 14/06/2024 for Assessment Year 2016-17.

“2. That the Ld. CIT(A) has erred in law and facts in not adjudicating the additional ground of appeal raised vide application dated 27/11/2023 and has neither called for any remand report nor given any finding on the evidences submitted along with the said ground of appeal.”

3. This appeal was called for hearting, none was present on assesse side but going through the Assessment Order and the order of the Ld. CIT(A) and the grounds raised before the Ld. CIT(A) and particularly additional ground raised vide application dated 27/11/2023, we deem it appropriate to adjudicate this appeal without hearing the assessee.

4. We have heard the Ld. Sr. DR and gone through the facts and circumstances of the case. The brief facts of the case are that the assesse filed its return of income on 26/03/2017 declaring a returned income of Rs.9,67,350/- + agricultural income Rs.15,00,000/-. The case was selected for scrutiny assessment in order to examine the source of cash deposits made in the various banks account of the assesse amounting to Rs.1,79,75,500/-. The assessee was a non-cooperative and hence, the Assessing Officer framed assessment. Accordingly, entire cash deposits of Rs.1,79,75,500/- was treated as unexplained income of the assesse u/s 68 of the Act. We noted that the assesse has deposited the cash in the following bank accounts, which are tabulated in Assessment Order.

Jaspreet Singh vs. ITO Name of the Bank Bank Account No. Amount of Cash deposits Axis Bank, Karnal 913030016904853 Rs.42,92,000/- -do- 913010016229077 Rs.24,52,000/- ICICI Bank Sector-13 661705112420 Rs.7,00,000/- Karnal -do- 661701700007 Rs.63,36,500/- -do- Sector-12, Karnal 017301514473 Rs.41,95,000/- Total Cash deposits Rs.1,79,75,500/- The assesse has deposited this cash during Financial Year 2015-16 and before Ld. CIT(A) claimed that the assesse has sold plots of agricultural land for a sum of Rs.1,89,37,500/- and this agricultural land was sold and received cash only. The Ld. CIT(A) noted in his appellate order that the one plot of agricultural land in Village Bedanpur, Karnal District was sold for Rs.1,04,50,000/- on 16/07/2012. Similarly, another plot of agricultural land in the same locality was sold for a sum of Rs.84,87,500/- on 07/11/2012. According to Ld. CIT(A), there is a gap between deposits made in Financial Year 2015-16 and land sold in Financial Year 2012-13. We noted that CIT(A) has not examined the details, whether cash is received by assesse from sale of agricultural land or plot in village Bedanpur, Karnal was utilized for any other purpose or not. To examine this aspect, we remit this issue back to the file of Ld. CIT(A) and even otherwise the Ld. CIT(A) has not examined the additional ground of the assesse. The Ld. CIT(A) has to give finding of fact in respect of sale of agricultural land and cash received whether there is correlation between the cash received on account of sale of land during the period 2012-13 with that of cash deposit in bank accounts Jaspreet Singh vs. ITO during 2015-16. In term of the above, we set aside the order of the Ld. CIT(A) and restore this issue back to his file for fresh adjudication.