NITIN KUMAR,GAUTAM BUDDHA NAGAR vs. ITO,WARD-2(3), NOIDA
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
This assessee’s appeal for Assessment Year 2011-12, arises against the CIT(A)/NFAC, Delhi’s DIN & order No.
ITBA/NFAC/S/250/2024-25/1064753395(1) dated 09.05.2024, in proceedings u/s 147 r.w.s. 143(3) of the Income Tax Act,
1961 (in short “the Act”).
Heard both the parties at length. Case file perused.
It emerges during the course of hearing that the sole substantive issue which arises for the tribunal’s apt adjudication is that of correctness of both the learned lower authorities’ action treating the assessee’s cash deposits of Rs.27,12,190/- as unexplained u/s 68 of the Act. Nitin Kumar
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4. That being the factual backdrop, a perusal of the assessment order dated 10.12.2018 itself indicates that the assessee has already been held as engaged in retail/wholesale trading of agricultural seeds.
That being the case, the necessary inference which would arise in assessee’s favour is that the impugned cash deposits prima facie represent his cash turnover in the above unorganized sector. I thus deem it appropriate in the larger interest of justice to restrict the impugned addition of Rs.27,12,390/- to a lump sum figure of Rs.3,50,000/- only with a rider that the same shall not be treated as a precedent. The remaining component of impugned addition stands deleted in very terms. Necessary computation shall follow as per law.
This assessee’s appeal is partly allowed. Order Pronounced in the Open Court on 26/06/2025. (Satbeer Singh Godara)
Judicial Member
Dated: 26/06/2025
*Subodh Kumar, Sr. PS*