This case discusses the appeal by Mahender Singh against the order of the Commissioner of Income-tax (Appeals)-1, Gurgaon, which pertains to the assessment year 2010-11. The main issue revolves around the reassessment of cash deposits amounting to Rs. 3,17,600 which were claimed to be from past savings and agricultural income.
The appellant, Mahender Singh, faced an order from the CIT(A) dated 29.06.2018, which sustained the addition made by the Assessing Officer under the reopening action of the IT Act. The case was reopened based on substantial cash deposits made by the assessee.
The grounds of appeal included questioning the validity of the reassessment under section 147, challenges to the jurisdiction and procedural aspects under sections 151 and 143(2), and the validity of additions for the cash deposited as being unsubstantiated by evidence.
The appellant argued that the cash was from past savings and agricultural activities, supported by documentation of land ownership and cultivation. However, the CIT(A) rejected these claims, stating no substantial evidence was provided to substantiate the agricultural income, leading to confirmation of the addition.
The Tribunal, after reviewing the evidence, including revenue records and submissions, found that the claims regarding agricultural income were credible and supported by documentary evidence. It was concluded that the authorities below had erred in their findings, leading to an order to delete the addition made by the Assessing Officer.
The Tribunal allowed the appeal of Mahender Singh, directing the Assessing Officer to delete the additions made. This case highlights the importance of documentary evidence in claims of non-taxable income and the scrutiny such claims undergo in legal proceedings.
Judicial Member: Kul Bharat
Assessee’s appeal allowed.
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