DUSHYANT CHOUDHARY,GHAZIABAD UP vs. CIT(A), GHAZIABAD UP

The assessee has filed appeal against the order of the Learned Commissioner of Income Tax (Appeals)-3, Noida [“Ld. CIT(A)” for short] dated 24.07.2024 for the Assessment Year 2017-18.

None appeared on behalf of the assessee at the time of hearing. Since the issue involved is simple, we proceed to decide the appeal after hearing the ld. DR of the Revenue and the material placed on record.

Brief facts of the case are, as brought to our notice by the ld. DR of the Revenue, assessment order was passed ex-parte, however assessee preferred an appeal before the ld. CIT (A)-3, Noida. He submitted that the AO during the course of assessment proceedings found that the assessee is maintaining a bank account in IDBI Bank and UCO Bank and during the current assessment year, the assessee has deposited Rs.3,82,200/- plus Rs.31,807/- respectively in the banks. Since the assessee has not offered any explanation regarding the source of amount deposited into the bank, the same is treated as undisclosed income u/s 68 of the Act. Before ld. CIT (A), it was submitted that the source of income for the cash deposited of Rs.3,82,200/- during the relevant FY was duly reported in the income-tax return filed for the relevant period. The deposit of Rs.3,82,200/- was included in the receipts declared under profit & gain of the business and prayed that the above addition is unwarranted. After considering the submissions of the assessee, ld. CIT (A) dismissed the same by rejecting the submissions of the assessee.

Aggrieved assessee is in appeal before us raising following ground of appeal :- “1 That the assessee has e-filed his income tax return of Rs.261000 vide acknowledgement no is 3011671190220918 dated 22.09.2018.

At the time of hearing, ld. DR of the Revenue relied on the findings of the lower authorities.

Considering the submissions of the ld. DR of the Revenue and material available on record. We observe that assessee has declared an income of Rs.2,61,000/- as gross total income. Since the assessee has already declared the abovesaid income and during the year, assessee has made the cash deposit of Rs.3,82,200/- and Rs.31,807/-, the total is Rs.4,14,007/-. Since the assessee has deposited the abovesaid amount in its bank account, we observe that assessee has already declared gross income of Rs.2,61,000/-. If at all there is an addition can be made it could be made only on additional cash deposit of Rs.1,53,007/-. Therefore, in our considered view, since assessee has already declared income of Rs.2,61,000/- the above cash deposits are part and parcel of the abovesaid gross income declared by the assessee in its return of income. The income of the assessee may be determined as total gross income to the extent of cash deposits made by the assessee during the year. Accordingly, the AO is directed to determine the additional tax liability of the assessee keeping the gross total income of Rs.4,14,007/- and take the tax liability as per slab rate at that point of time.

In the result, the appeal filed by the assessee is partly allowed. Order pronounced in the open court on this 23rd day of June, 2025 after the conclusion of the hearing.