Sher Singh Vs ITO (ITAT Chandigarh)
The Income Tax Appellate Tribunal (ITAT), Chandigarh, decided the appeal of Sher Singh vs ITO relating to Assessment Year 2017–18. The appeal arose from an order of the Commissioner of Income Tax (Appeals), NFAC, Delhi, dated 24 January 2025, which had partly confirmed an addition of ₹14,75,600/- made by the Assessing Officer (AO) for unexplained cash deposits. The CIT(A) sustained ₹12,25,600/- as unexplained under section 69A of the Income Tax Act, granting relief of ₹2,50,000/-.
The assessee, engaged in agriculture and milk production, challenged the order, contending that the cash deposits were explained through agricultural income, milk sales, household savings, and cash withdrawals made by his wife, Smt. Rupinder Kaur. It was submitted that supporting documents—affidavits, Jamabandi, bank statements, and a cash-flow statement—had been filed and admitted under Rule 46A but were not fully appreciated. The assessee also argued that the special rate of tax under section 115BBE and the interest under sections 234A and 234B were wrongly applied.
The Tribunal first addressed a 245-day delay in filing the appeal, which it condoned after considering the assessee’s affidavit and noting that the Department had no objection. The facts showed that the AO had framed the assessment ex parte under section 144 due to non-compliance with statutory notices, treating all deposits as unexplained.
