Case Number: ITA 902/DEL/2020
Appellant: Chokhram, Palwal
Respondent: ITO Ward – 1(2), Faridabad
Assessment Year: 2010-11
Result: Appeal allowed for statistical purposes
Case Filed On: 2020-02-25
Order Type: Final Tribunal Order
Date of Order: 2022-07-19
Pronounced On: 2022-07-19
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B” NEW DELHI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR US, JUDICIAL MEMBER
This is an appeal by the assessee against the order of the Ld. CIT (Appeals), Faridabad dated 31.12.2019 and pertains to AY 2010-11. The grounds of appeal primarily revolved around the addition of Rs. 50,21,000/- in the income of the assessee, denial of liability to pay Rs. 41,85,771/- as tax, procedural irregularities, and the treatment of dummy deposits as income.
The facts revealed that the assessee, an illiterate agriculturalist, maintained a bank account with Gurgaon Gramin Bank. It was alleged that the bank manager, Mr. Rajender Singh, had entered fictitious cash deposits to meet annual targets, which led to the addition of Rs. 50,21,000/- as unexplained income. The assessee contested this, presenting an affidavit from Mr. Rajender Singh admitting to the falsity of the entries.
Despite the submission, the CIT (Appeals) and subsequently the ITAT did not accept the explanation, citing lack of official confirmation from Gurgaon Gramin Bank and failure to substantiate the claim of fictitious entries adequately. However, the ITAT acknowledged the pattern where similar cases involving Mr. Rajender Singh’s actions resulted in proceedings being dropped for other individuals.
Consequently, the ITAT remitted the issue back to the Assessing Officer for re-examination, emphasizing the need for proper inquiry and granting the assessee an opportunity to be heard.
For detailed references and legal implications, the case relied on the judgment of the Hon’ble Allahabad High Court in Harish Chandra Bhati Vs. PCIT Noida and 2 Others dated 19.05.2022.
Given these findings, the appeal was allowed for statistical purposes, providing relief to the appellant.
ITA No. 902/Del/2020 – Chokhram vs. ITO Ward 1(2), Faridabad
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