Rajwinder Singh Vs ITO (ITAT Chandigarh)
ITAT Chandigarh adjudicated appeals filed by Rajwinder Singh and Amarjeet Singh challenging orders from the Commissioner of Income Tax (Appeals) [CIT(A)]. The appeals stemmed from ex-parte assessments where cash deposits in their bank accounts were treated as unexplained income under Section 144 of the Income Tax Act. The assessees contended that their incomes were below the taxable limit and primarily derived from agricultural activities. The CIT(A), however, dismissed the appeals, citing non-payment of advance tax and deeming the bank deposits as taxable income without fully considering the assessees’ submissions.
Rajwinder Singh’s case involved cash deposits of ₹6.55 lakh during the assessment year 2011–12, while Amarjeet Singh faced a similar issue involving ₹30 lakh for the subsequent year. Both cases were marked by delays in appeal filing, which the tribunal condoned due to their brevity. The tribunal noted that the CIT(A) failed to evaluate the claims that the assessees’ incomes were non-taxable due to their agricultural nature. Moreover, every deposit in the bank account cannot always be an income of the assessee. Therefore, the condition of deposit of advance tax could not be imposed blindly without considering the contention of the assessee that his income was below the taxable limit.
