Late Shri Khemraj Patidar Vs ITO (ITAT Indore)
The appeal concerns the order dated 04.01.2024 passed by the CIT(A)-NFAC, Delhi, arising from an assessment order dated 25.11.2019 under Sections 144 and 147 for Assessment Year 2012–13. The assessee challenged the confirmation of additions totalling Rs. 43,01,000/-, claiming them to be unjustified, unwarranted, and contrary to law. The assessee argued that the authorities failed to consider submissions, ignored documentary evidence, treated agricultural land as a taxable capital asset, wrongly computed capital gains without allowing deductions under Section 48, and incorrectly attributed transactions to the assessee despite his lack of involvement. Additional grievance was raised on the treatment of amounts deposited in the bank account as taxable income and on the disregard of the assessee’s advanced age, illiteracy, and agricultural background. Relief was also sought on the basis that the appellant had no taxable income and that errors in computation, valuation, and assessment led to an inflated tax liability.
The facts show that the assessee did not file a return for AY 2012–13. The Assessing Officer received information that a land was sold on 21.03.2012 for Rs. 30,00,000, with a stamp valuation of Rs. 37,01,000, and identified cash deposits of Rs. 11,00,000 in the assessee’s bank account. Based on this information, proceedings under Section 147 were initiated through a notice under Section 148 dated 26.03.2018. The assessee did not comply with this notice. Partial compliance to notices under Section 142(1) followed, during which the assessee stated that he had no income other than agricultural income, had not filed a return, and did not possess documents due to the age of the matter. The Assessing Officer obtained bank information under Section 133(6), issued a final opportunity notice, and eventually completed a best-judgment assessment under Section 144. Additions of Rs. 37,01,000 on account of capital gains and Rs. 11,00,000 as unexplained cash deposits were made. In first appeal, the CIT(A) granted partial relief by deleting Rs. 5,00,000 from the addition relating to cash deposits.
