RAJINDER SINGH,MANSA vs. INCOME TAX OFFICER, MANSA
Facts
The assessee, an agriculturist, deposited Rs. 49.50 lakhs in his bank account in FY 2011-12 but filed no income tax return. The Assessing Officer completed an ex-parte assessment, treating the entire deposit as income under section 69A. The CIT(A) dismissed the appeal due to non-payment of advance tax and non-filing of the return, with the assessee claiming to be in USA during the appeal proceedings and having no taxable income.
Held
The Tribunal observed that the assessee might not be liable for advance tax and remanded the case back to the CIT(A) to admit the appeal, provide an opportunity of hearing to the assessee, and dispose of the grounds on merits after verifying the documentary evidences regarding the source of cash deposits.
Key Issues
Validity of ex-parte assessment of cash deposits, procedural dismissal of appeal by CIT(A) without proper hearing, and verification of the authenticity of the source of cash deposits.
Sections Cited
250, 147, 144, 69A, 148, 249(4)(b), 208, 210
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR
Before: SH. UDAYAN DASGUPTA & SH. KHETTRA MOHAN ROY
Per Udayan Dasgupta, J.M.:
This appeal is filed by the assessee against the order of the ld. CIT (A) NFAC,
Delhi dated 22.09.2023 passed u/s 250 of the Income Tax Act, 1961 which has emanated from the order of the AO, Ward-1(4), Mansa passed u/s 147 (r.w.s. 144) of the Act, 1961 dated 17.12.2019.
2 I.T.A. No. 310/Asr/2023 Assessment Year: 2012-13 2. There are eleven grounds of appeal taken by the assessee in Form No. 36 out
of which ground no. 5 is in respect of non service of notice u/s 148 of the Act, 61, on
the assessee and the ground no. 4 is an objection to no proper opportunity of hearing
being allowed by the ld. first appellate authority.
Brief facts emerging from records are that the assessee is an individual and is
claimed to be an agriculturist, without any other source of income (other than
agricultural receipts). During the financial year 2011-12 an amount of Rs.49,50,000/-
has been deposited by the assessee in his bank account and no return of income has
been filed. In course of scrutiny, in absence of any explanations or any response from
the assessee, the assessment was completed ex-parte on a total income of
Rs.49,50,000/- (the entire cash deposit being assessed as income u/s 69A of the Act).
The matter carried in appeal has been dismissed by the ld. CIT(A) for non-
payment of advance tax, coupled with the fact that no income tax return has been
filed.
Now, the assessee is in appeal before the Tribunal on the grounds contained in
the memorandum of appeal. In course of hearing, the ld. AR of the assessee has filed
a short paper book containing the passport of the assessee and submitted that the
assessee was in USA during the course of appeal proceedings as a result of which
proper representation of appeal could not be made before the ld. first appellate
3 I.T.A. No. 310/Asr/2023 Assessment Year: 2012-13 authority. He further submitted that in the instant case, the asessee has got no income
other than agricultural income and as such no return of income has been filed because
he has got no taxable income.
He further pointed out that in course of proceedings before the first appellate
authority a deficiency letter has been issued which has been duly complied with by
the assessee and the copy of the reply has been placed in paper book (page no. 32).
He further submitted that explanations of the source of cash deposit in bank account
has been explained to have come from his relatives and friends who has handed over
cash for deposit in his bank account for the purpose of purchase of agricultural lands
and he has filed a synopsis (in page no. 5 of the paper book) to clarify that the total
amount received in cash has been deposited in his bank account and thereafter the
said amount has been utilized through bank channel (RTGS) for purchase of
agricultural lands in the name of relatives vide execution of proper registered title
deeds in the name of the respective relatives from whom the cash has been received.
He further submitted that out of the total deposits in bank, small amounts are
out of his agricultural produce which are negligible amount and earmarked. He
submitted copies of all registered purchase deeds of conveyance in the names of the
individual relatives for whom the said lands has been purchased and the same are all
on record. In other words, he submitted that the entire deposit of Rs.49,50,000/- are
4 I.T.A. No. 310/Asr/2023 Assessment Year: 2012-13 explained to have been received from the respective persons whose names appeared
in the deed of conveyance (purchased deed), and he has not derived any personal
benefits. He further stated that the ld. CIT(A) should have issued an opportunity of
hearing before dismissing the appeal by refusing to admit the same on the grounds of
non-payment of advance tax being hit by provisions of section 249(4)(b) of the Act,
when on the facts of the instant case, no advance tax is payable by the assesssee u/s
208 r.w.s. 210 of the Act where advance taxes is payable out of own accord and in the
instant case, there is no taxable income of the assessee himself.
As such, he prayed for an opportunity before the ld. first appellate authority to
explain his case with all necessary documentary evidences for the proper disposal of
the appeal.
The ld. DR relied on the order of the ld. CIT(A) but has no objection if the
matter is remanded back to the files of the first appellate authority for adjudication on
merits.
We have heard the rival submissions and considered the materials on record
and we find that the there has been non compliance before the Assessing Officer and
documentary evidences now filed before the Tribunal needs to be properly verified
regarding its authenticity. However, we find from the documents submitted before us
5 I.T.A. No. 310/Asr/2023 Assessment Year: 2012-13 that the assessee is apparently not liable to pay any advance taxes u/s 208 of the Act
and as such he has no liability u/s 208 (r.w. 210) of the Act in absence of any taxable
income, (on the basis of presentation of documents made by the assessee before us).
As such, in the interest of justice, we remand the matter back to the files of the
ld. CIT(A) with a direction to admit the appeal for hearing of the case and to dispose
of the grounds contained in Form No. 35 on merits and the assessee is directed to file
all documentary evidences in support of his contention to explain the source of cash
deposited in bank account, to the satisfaction of the appellate authority. Regarding
the fresh documents submitted by the assessee, necessary verifications may be
conducted and report may be obtained from the AO as per provisions of law.
The assessee may be allowed reasonable opportunity of being heard.
We have not expressed any opinion on the authenticity and genuineness of the
documentary evidences that has been submitted before us, which however, needs
verification regarding its authenticity.
We have not expressed any opinion on merits of the case and all legal issues
are left open.
6 I.T.A. No. 310/Asr/2023 Assessment Year: 2012-13
In the result, the appeal filed by the assessee is allowed for statistical purpose.
Order pronounced in open court as on 22.08.2025.
Sd/- Sd/- (Khettra Mohan Roy) (Udayan Dasgupta) Accountant Member Judicial Member *GP/Sr.PS* Copy of the order forwarded to: (1)The Appellant: (2) The Respondent: (3) The CIT concerned (4) The Sr. DR, I.T.A.T True Copy By Order
