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Facts
The assessee filed an appeal against the CIT(A)'s order for AY 2012-13, which confirmed an addition of Rs.30 Lacs cash deposit made by the AO under Sections 147 and 144. The addition was sustained as the assessee failed to substantiate that the cash deposits were sourced from agricultural income.
Held
Considering the principles of natural justice and potential communication gaps in the faceless assessment regime, the Tribunal set aside the CIT(A)'s order. The case was directed for de novo adjudication by the CIT(A), with the assessee instructed to present and prove its case forthwith.
Key Issues
1. Justification of the addition of Rs.30 Lacs cash deposit and the source of such deposits (agricultural income). 2. Compliance with natural justice principles in faceless assessment proceedings.
Sections Cited
Section 147, Section 144
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
(िनधा�रण वष� / Assessment Year: 2012-13) Shri Jasvir Singh ITO C/o Shri Ashwani Kalia (CA) Ward 1(5) बनाम/ Vs. 237, Basant Avenue Mansa. Maqbool Road, Amritsar. �थायीलेखासं./जीआइआरसं./PAN/GIR No. GAEPS-8131-J (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/Appellant by : Adj. Application ��थ�कीओरसे/Respondent by : Sh. Charan Dass (Addl. CIT) – Ld. DR सुनवाईकीतारीख/Date of Hearing : 05-08-2025 घोषणाकीतारीख /Date of Pronouncement : 18-08-2025 आदेश / 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.