Ranbir Singh Vs DCIT (ITAT Chandigarh)
Plant 500 Trees or Face ₹11.22 Crore Addition: Chandigarh ITAT Gives Taxpayer a “Green” Second Chance
The assessee had returned income of ₹1.79 lakh along with agricultural income of ₹3 lakh. During scrutiny, the AO noticed cash deposits of ₹85.93 lakh during the demonetisation period, unsecured loans of ₹9.25 crore, sundry creditors of ₹1.07 crore, and unsubstantiated agricultural income. Since the assessee failed to furnish adequate evidence regarding the sources and the identity, creditworthiness and genuineness of creditors/lenders, the AO made aggregate additions of ₹11.22 crore, assessing total income at ₹11.23 crore. CIT(A) confirmed the additions.
Before the ITAT, the assessee sought one final opportunity to substantiate the transactions with supporting documents before the AO. As a measure of social and environmental responsibility, he voluntarily undertook to plant 500 trees at the Yamuna Bank, Panipat-Samalakha site, with the assistance of Hari Yamuna Sehyog Samiti, and also agreed to bear the stipulated maintenance cost.
Considering the circumstances and in the interest of justice, the Tribunal granted the assessee a final opportunity and remanded the matter to the AO, subject to compliance with the plantation undertaking.
The ITAT directed that within one month, the assessee must either plant 500 trees at the specified Yamuna Bank location and ensure their installation, protection and maintenance, or pay the requisite plantation and maintenance cost to the specified NGO and furnish documentary proof to the AO.
