RAJBIR SINGH,JALANDHAR vs. INCOME TAX OFFICER, NAKODAR
Facts
The assessee, an agriculturist, did not file an income tax return. His case was reopened under Section 147 for cash deposits of Rs. 50.07 lakhs. Due to non-compliance, the assessment was completed ex-parte at Rs. 51.07 lakhs, and the addition was sustained by the CIT(A) without hearing the assessee on merits.
Held
The Tribunal observed that the CIT(A) did not decide the appeal on merits. Given the documentary evidence presented by the assessee at the Tribunal stage and the explanation for non-compliance by his counsel, the matter is set aside and remanded back to the Assessing Officer for fresh assessment and proper verification, ensuring the assessee is given a reasonable opportunity of being heard.
Key Issues
Whether the addition of cash deposits from agricultural income was justified without proper opportunity of hearing; and the validity of assessment proceedings completed ex-parte.
Sections Cited
144, 147, 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR
Before: SH. MANOJ KUMAR AGGARWAL & SH. UDAYAN DASGUPTA
Per Udayan Dasgupta, J.M.:
This appeal is filed by the assessee against the order of the ld. CIT(A) NFAC, Delhi dated 03.12.2024 passed u/s 250 of the Income Tax Act, 1961 which has emanated from the order of the AO, Ward, Nakodar passed u/s 144/147 of the Act,
1961 dated 25.11.2019.
2 I.T.A. No. 83/Asr/2025 Assessment Year: 2012-13
Grounds of appeal taken by the assessee in Form No. 36 are as follows:
“1. That the order of the Ld. CIT(A) is against law and facts of the case on the file.
That the Ld. CIT(A) gravely erred In passing the appellate order without giving a proper opportunity of being heard.
That the Ld. CIT(A) has gravely erred In sustaining the addition of Rs. 50,07,000/- in respect of deposits in bank account without considering the proper facts of the case and without observing the principles of natural justice Ignoring the assessee is an agriculturist and the bank deposits were made out of agricultural proceeds.
That the case was wrongly reopened under Section 147 of Income Tax Act, 1961 and is time barred.
That the appellant begs to add or amend any ground of appeal before the appeal is heard and disposed off.”
Brief facts emerging from records are that the assessee is an agriculturist and
derives income from agriculture, sale of milk and livestock and has not filed any
return of income. The case of the assessee was reopened u/s 147 on the information
that cash deposits to the tune of Rs.50.07 lacs has been made in his bank account. In
absence of any return and due to total non compliance on the part of the assessee to
various notices issued by the department, the assessment has been completed on a
total income of Rs.51.07 lacs. The first appellate authority has sustained the said
addition on account of non appearance and no response on the part of the assessee to
various notices issued on at least five different dates. Thereafter, the addition has
3 I.T.A. No. 83/Asr/2025 Assessment Year: 2012-13 been sustained in absence of any evidence regarding the agricultural income or any
other source of income as submitted by the assessee in his grounds of appeal.
In course of appeal, the ld. AR of the assessee submitted that during the last
leg of the assessment proceedings, advocate Mr. Shakti Takiar was appointed as the
counsel of the assessee but he could not file any submissions before the Ld. AO due
to non-availability of the requisite information with the counsel. Later in Form-35
dated 24.12.2019 the email id mentioned was Adv.Taklar@rediffmail.com and
Indiataxx4@rediffmail.com which belonged to Mr. Shakti Takiar and the intimations
of the appellant proceedings were being done on this email but the counsel did not
inform the assessee about the proceedings.
He also submitted an affidavit filed by Mr. Shakti Takiar, Adv. dated
15.07.2025 where he has stated that while filing the first para in Form No. 35, e-mail
id. mentioned belongs to him as Adv.Taklar@rediffmail.com and
Indiataxx4@rediffmail.com and during the appellate proceedings, notices were sent
to his e-mail id but the same could not be replied because all the mails delivered in
the spam folder and he did not check the spam and was not able to communicate the
same which resulted in this non-compliance.
4 I.T.A. No. 83/Asr/2025 Assessment Year: 2012-13 6. As such, the ld. AR prayed that another opportunity may please be allowed to
the assessee for proper adjudication of the matter so that the grounds of appeal may
be disposed of on merits of the case after consideration of all documentary evidences.
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
the merits of the case.
We have heard the rival submissions and considered the materials on record
and we find that the ld. CIT(A) has not decided the grounds of appeal on merits of
the case in absence of any documentary evidences or any submissions before him.
During the proceedings before the Tribunal the assessee has filed a paper book
containing various documentary evidences evidencing sale of agricultural produce (J-
Form), copy of lease deed evidencing agricultural holdings, Jamabandi, evidence of
sale of livestock, ledger A/c and certificates of Agents of the grain market evidencing
payments, copies of bank statement, and other particulars, explaining source of cash
deposits in bank A/c by the assessee. We also consider the affidavit filed by the
advocate Mr. Shakti Takiar and in the interest of justice, we find that in the instant
case, the matter is to be set aside back to the A.O. for verification of documentary
evidence, and we also direct the assessee to furnish all documentary evidences and
5 I.T.A. No. 83/Asr/2025 Assessment Year: 2012-13 submissions in support of his contention and to explain the source of cash deposits in
his bank before the A.O., and the matter is set aside for fresh assessment.
The assessee will be allowed reasonable opportunity of being heard.
We have not expressed any opinion on merits and all legal grounds taken by
the assessee are kept open.
In the result, the appeal filed by the assessee is allowed for statistical purpose.
Order pronounced in accordance with Rule 34(4) of the Income Tax (Appellate
Tribunal) Rules, 1963 as on 31.07.2025.
Sd/- Sd/- (Manoj Kumar Aggarwal) (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
