9911796707
TMI Blog2025 (1) TMI 1200X X X X Extracts X X X X X X X X Extracts X X X X ..... by ld. CIT(A) vide two separate appellate orders both dated 17.01.2023. The assessee filed one appeal before ITAT against both the two separate appellate orders passed by the ld. CIT(A), which is against the scheme of appellate proceedings as prescribed under the Income-tax Act, 1961. The assessee clarified and filed amended grounds of appeal withdrawing the earlier grounds of appeal, and stated before the Bench through his legal counsel that this appeal filed with ITAT was against the appellate order dated 17.01.2023 passed by ld. CIT(A) which in turn had arisen against the assessment framed by the AO u/s 144 of the 1961 Act in quantum. 2. The amended grounds of appeal filed by the assessee with ITAT, Agra Bench, Agra, reads as under: "1. That the NFAC has erred on facts and in law while sustaining the addition at Rs. 10 lac made by the AO, treating the deposits with the bank as unexplained. No addition is liable to be made, addition made by the AO, sustained by the NFAC is liable to be deleted. 2. That while sustaining the addition, the NFAC has completely ignored that the assessee has duly furnished all the supporting documents (earning of agriculture income, complete deta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ited cash to the tune of Rs. 10 lakhs in his bank accounts during demonetization period, out of which Rs. 8 lakhs were deposited in Account No. 410605030391041 of Union Bank of India, Guna and Rs. 2 lakhs in Account No. 53008417172 of State Bank of India Branch, GBB Guna. The SCN was also issued, and the assessee sought time to file reply. The AO observed that the assessee was provided various opportunities during the course of assessment proceedings, but the assessee did not reply to various notices, and the Assessing Officer after seeking directions u/s. 144A from the learned Joint Commissioner of Income Tax, Range-3, Gwalior, made additions to the income of the assessee to the tune of Rs. 10,00,000/- in the hands of the assessee being unexplained cash deposits made by the assessee in his bank accounts, vide assessment order dated 02.12.2019 passed by the AO u/s 144 of the 1961 Act. 4. Assessee being aggrieved by the assessment order dated 02.12.2019 passed by the AO u/s 144, filed first appeal with the ld. CIT(Appeals), and submitted in the Statement of Facts filed in Form No. 35 before ld. CIT(A) that the assessee and his family have 261 bighas of agricultural land. Only sourc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as per his needs. It was also submitted that the assessee was selling his crops in cash, wherein the money realized in cash from sale of crops were deposited in the bank account. Thus, in nutshell, assessee tried to explain before learned CIT(Appeals) that the assessee is only engaged in agricultural activities. Assessee had withdrawn money from bank accounts, which was deposited back during demonetization period. It was also claimed that the assessee was selling agricultural cops in cash and the amount was deposited in the bank account. Amounts withdrawn from KCC account was also deposited back in the bank account in cash. Ld. CIT(Appeals) recorded the said contentions of the assessee in his order, but while disposing of the appeal, ld. CIT(Appeals) has referred to the non-compliance by the assessee to various statutory notices issued by the Assessing Officer u/s. 142(1) of the Act during the assessment proceedings as well as to the notices issued by ld. CIT(Appeals) u/s. 250 of the Act. Ld. CIT(Appeals) also observed that the assessee has not filed documentary evidence of agricultural income like 7/12 extract, incomplete land details as well incomplete sale bills of agricultural ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Assessing Officer during the assessment proceedings, as the assessee's son, Mrityunjay was seriously ill (who ultimately died )and hence, there was no compliance before the Assessing Officer as his son was looking after the necessary record keeping. Further, notices were issued to the address at Bhopal where the assessee's son was temporarily living when he was studying at Bhopal. The assessee was not aware of the assessment proceedings. It was also submitted that the assessee is an illiterate farmers and he does not have any smart phone and does not have access to email etc. Only Son of the assessee who was looking after the affairs of the assessee died. It was submitted that before the ld. CIT(Appeals), detailed reply/evidences were submitted, which were not considered by ld. CIT(A) in proper perspective. The assessee and his family members are owning around 261 bighas of agricultural land and assessee's only income is from agriculture. Thus, the assessee was having exempt income. Ld. CIT(Appeals) dismissed the appeal of the assessee without considering the evidences filed before ld. CIT(A) in proper perspective, and without making any enquiry as is contemplated u/s. 250(6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... int Commissioner of Income Tax, Range-3, Gwalior, framed the assessment order u/s. 144 of the Act by bringing to tax unexplained cash credit of Rs. 10,00,000/- being cash deposited during demonetization period, in the hands of the assessee as unexplained income of the assessee. Assessee being aggrieved, filed first appeal with ld. CIT(Appeals) and the assessee made contentions in the statement of facts that the assessee and his family members were owning 261 bighas of agricultural land. Entire family is engaged in the activities of agriculture and the cash has been deposited out of earlier cash withdrawals and /or sale of cops. During the course of appeal proceedings, the assessee had filed details of land records before the ld. CIT(Appeals) as well as bank statements. It was claimed by the assessee before the ld. CIT(Appeals) that cash deposit to the tune of Rs. 10 lakhs was arising either out of cash withdrawals from the bank accounts and/or withdrawal from KCC(Kisan Credit Card)and/or from the sale of crops. Assessee had also enclosed bank statements and land records. The assessee claimed that his only son Mrityunjay was looking after the record keeping, who was suffering from p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es filed by the assessee ought to have been admitted by the ld. CIT(Appeals) and proper verification/enquiry ought to have been done by the CIT(Appeals) as is required u/s 250(4), or the CIT(Appeals) ought to have directed the Assessing Officer to make proper enquiry with respect to additional evidence filed by the assessee such as records of land holding, details of sale of crops, bank statements etc. and furnish remand report to the ld. CIT(A)(Rule 46A), but rather, ld. CIT(Appeals) simply dismissed the appeal of the assessee, and such appellate order is not sustainable in the eyes of law liable to be set aside for denovo adjudication of the appeal of the assessee. Under these facts and circumstances and in the interest of justice and fairness to both the rival parties, appellate order of the CIT(Appeals) is not sustainable in the eyes of law and the said order is set aside, and the matter is restored back to the file of ld. CIT(Appeals) for de novo adjudication of the appeal of the assessee after considering the additional evidences, claims and contentions of the assessee, which were earlier filed by the assessee before ld. CIT(A) in the appellate proceedings, or which may be fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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