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Facts
The assessee appealed against an order that sustained an addition of Rs.59 lakhs under Section 69A for undisclosed income from cash deposits. The addition arose from a reopening under Section 147 after an assessment under Section 143(3) was completed.
Held
The Tribunal found that while the reopening itself was challenged, the merits involved the claimed sale of ancestral agricultural land and associated bank deposits. However, due to the need for verification of these claims, the issue was restored to the Assessing Officer.
Key Issues
Whether the reopening under Section 147 was valid when an assessment under Section 143(3) was already completed, and if the cash deposits were from disclosed sources like sale of ancestral land requiring verification.
Sections Cited
144, 147, 143(3), 69A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH, ‘G’: NEW DELHI
Before: SHRI ANUBHAV SHARMA & SHRI MANISH AGARWAL, ACCOUNTNAT MEMBER
Date of Hearing 18.09.2025 Date of Pronouncement 26.11.2025 ORDER PER ANUBHAV SHARMA, JM,
This appeal has been preferred by the assessee against order dated 20.01.2025 of National Faceless Appeal Centre, Delhi, in Appeal No.CIT(A), Delhi-12/10221/2019-20, arising out of order dated 30.11.2019 passed u/s 144 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by National E-Assessment Centre, Delhi/ITO Ward-34(6), Delhi, pertaining to Assessment Year 2012-13.
On hearing both the sides, we find that the issue involves addition of Rs.59 lakhs made u/s 69A of the Act as undisclosed income on account of cash deposits in the bank account made by the assessee which stands sustained by the NFAC. It comes up that it is a case of reopening u/s 147 of the Act while assessment u/s 143(3) of the Act was already completed. Though the assessee has challenged the reopening itself, however, it comes up on merits that the assessee has claimed sale of ancestral agricultural land. It was also claimed that there was a TDS return filed and all these aspects were duly disclosed. The ld. counsel has demonstrated on the basis of the bank account that it was out of the disclosed sources in the form of bank deposits and receipt of sale of land which was reflected in the form of deposits. However, as the same require verification, we consider it an appropriate case to restore the issue on merits to the files of the AO since the assessments are completed u/s 144 of the Act. The appeal is allowed for statistical purposes. The Assessing Officer is directed to give the opportunity of hearing to the assessee and pass an order afresh.
Order pronounced in the open court on 26th November, 2025.