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Facts
The assessee, a salaried employee, declared an income of Rs. 4,71,910. During scrutiny, a cash deposit of Rs. 11,00,000 was noticed in his bank account, which he explained as agricultural receipts. However, in the absence of supporting documents, this amount was added back to his income.
Held
The Tribunal held that the issue of cash deposit needs to be substantiated with documentary evidence related to agricultural holdings and income. The first appellate authority had dismissed the appeal without adjudication on merits due to the assessee's absence.
Key Issues
Whether the cash deposit in the bank account can be explained with supporting documentary evidence of agricultural income, and whether the appeal should be adjudicated on merits after providing a proper opportunity to the assessee.
Sections Cited
69A, 250, 143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR.
Before: SH. MANOJ KUMAR AGGARWAL & SH. UDAYAN DAS GUPTA
ORDER Per: Udayan Das Gupta, JM This appeal is filed by the assessee against the order of the Ld. JCIT (A)-1, Jaipur, passed u/s 250 of the Act 61, dated 26/06/2024, which has emanated from the order of the ITO-Ward, Nawanshahar, dated 18/11/2019 passed u/s 143(3) of the Act 61.
Condonation of delay: 2. It is pointed out by the registry that the appeal is belated by 56 days. The assessee has filed an application praying for condonation of delay on the ground that the order of the Ld. CIT ( A ) dated 26/06/2024, was served through email, on the authorised CA, but since the CA was fully engaged in the return filing and audit work in the months of July and August, the appeal could not be prepared and filed within time because the CA was not conversant with the appeal formalities and subsequently in the month of October, 2024, the said appeal was prepared and filed by a separate counsel . The assessee prays that the delay of 56 days was not intentional and wilful and was due to non-availability of competent persons and the same being unintentional, he prays for condonation of the delay and admission of the appeal for deciding on merits. The Ld. DR has no objection. The delay being not intentional on the part of the assesse the same is condoned and the appeal is taken up for hearing on merits.
There is no appearance on behalf of the assessee in spite of repeated calls. No application for adjournments has been filed. However, since it is an exparte order, we proceed to take up the hearing on merits of the case in consultation with the Ld. DR.
The brief facts emerging is that the assessee is a salaried employee and has filed return declaring Income of Rs. 4,71,910/-. During scrutiny proceedings it was noticed that there was cash deposit in bank amounting to Rs. 11,00,000/- in Canara Bank account of the assessee, which the assessee explained to have arisen out of agricultural receipts from agricultural lands owned by him. 4.1 In absence of proper documents and supporting J Forms, the amount of cash deposited in bank was added back u/s 69A of the Act 61 to the total income of the assessee.
In first appeal before the Ld. JCIT (A) – 1, Jaipur, in absence of any 5. representation nor any written submission from the assessee, in response to notices issued on various dates, by the first appellate authority in the ITBA portal and email id provided in the system, the appeal has been dismissed without adjudication on merits.
We are of the opinion that the issue of cash deposit in bank account is to be explained with supporting documentary evidences relating to agricultural lands holdings and documentary evidences of agricultural income.
As such in the interest of justice , we remand the matter back to the Ld. first appeal authority , to adjudicate the issue on merits of the case after affording proper and reasonable opportunity of being heard to the assessee ( through notice to be served as per provisions of section 282 of the Act 61, rwr 127 of IT Rules 62 ) and the assessee is also directed to file all necessary evidences in support of his case to explain the source of his cash deposit in bank account to full satisfaction of the appellate authority and to fully cooperate in the appellate proceedings. All contentions and arguments of the assessee are left open.
In the result, the appeal of the assessee bearing is allowed for statistical purposes.
Order pronounced on 11.04.2025 under Rule 34(4) of the Income Tax Appellate Tribunal Rules 1963.