Bhupendra Singh Vs ITO (ITAT Jabalpur)
₹2.53 Cr Deposits by Agriculturist-Addition Without Verification – ITAT Jabalpur Restores Matter for Fresh Assessment
Assessee, an agriculturist, was found to have deposited ₹88.69 lakh in bank accounts during demonetisation period. AO reopened assessment u/s 147 by issuing notice u/s 148 on 29/03/2021. As there was non-compliance, AO proceeded ex parte u/s 144/147 & assessed total income at ₹3.30 crore, treating total bank deposits of ₹2.53 crore as unexplained. CIT(A) upheld the addition ex parte, dismissing appeal without proper hearing, relying on an incorrect e-mail ID not belonging to Assessee.
Before Tribunal, Assessee contended that deposits were duly explained as sale proceeds of agricultural produce, inter-bank transfers & loans, but authorities failed to make any verification. It was also argued that opportunity of hearing was denied. Revenue argued that Assessee was negligent & failed to provide details.
Tribunal observed that AO, even while framing best judgment u/s 144, had a statutory duty to consider available materials & conduct independent enquiry. Since neither AO nor CIT(A) examined Assessee’s explanations or verified facts, additions were made merely on assumptions.
Accordingly, Tribunal set aside CIT(A)’s order & remanded matter back to AO for de novo assessment after independent enquiry. Assessee was directed to fully cooperate & furnish evidence of agricultural income, landholding & transactions.
