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Facts
The assessee appealed against the CIT(A)'s order which confirmed the AO's addition of Rs. 30 Lacs cash deposit, made under sections 147 read with 144. The lower authorities confirmed the addition as the assessee failed to substantiate that the deposits originated from agricultural income.
Held
The Tribunal set aside the impugned order and directed the CIT(A) to conduct a de novo adjudication. The assessee was instructed to plead and prove its case forthwith, considering potential communication gaps in the faceless assessment regime.
Key Issues
Whether the addition of Rs. 30 Lacs as unexplained cash deposit was justified, and if the assessee could prove the source of deposits as agricultural income.
Sections Cited
Section 147, Section 144, Rule 34(4) of Income Tax (Appellate Tribunal) Rules, 1963
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘DB’, AMRITSAR BENCH, AMRITSAR
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI UDAYAN DAS GUPTA, JM
O R D E R Manoj Kumar Aggarwal (Accountant Member) Aforesaid appeal by assessee for Assessment Year (AY) 1. 2012-13 arises out of an order of Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 21-10-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 147 r.w.s. 144 of the Act on 25-12-2019 wherein Ld. AO made addition of cash deposit of Rs.30 Lacs. The Ld. CIT(A) confirmed the assessment since the assessee could not substantiate the fact that the deposits were sourced out of agricultural income. Aggrieved, the assessee is in further appeal before us. The Ld. AR has sought adjournment whereas Ld. Sr. DR has pleaded for dismissal of the appeal.
Keeping in mind the principles of natural justice and considering the possibility of communication gaps during faceless regime, we set aside the impugned order and direct Ld. CIT(A) for de novo adjudication with a direction to the assessee to plead and prove its case forthwith.
The appeal stand allowed for statistical purposes. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963.