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Facts
The assessee's appeal for AY 2011-12 arose from proceedings u/s 143(3) r.w.s. 147. The core issue was the lower authorities' action of treating the assessee's opening cash of Rs.3,65,800/- as unexplained, partly based on a bank withdrawal of Rs.2,35,000/-.
Held
The Tribunal acknowledged that some past cash accumulations could not be ruled out, considering the assessee's socio-economic status. It deemed a lump sum addition of Rs.65,000/- to be just and proper, with the rider that it should not be treated as a precedent.
Key Issues
Whether the lower authorities were correct in treating the assessee's opening cash as unexplained, and if not, what would be an appropriate addition.
Sections Cited
143(3), 147
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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
Asstt. Year : 2011-12 Niraj Kumar Murarka, Vs CIT(A), H. No. Q-72, DLF New Town HSIIDC Building, Udyog Heights, Sector-90, Gurgaon, Vihar, Phase-V, Gurgaon, Haryana-122009 Haryana-122016 (APPELLANT) (RESPONDENT) PAN No. AWOPM2488G Assessee by: Sh. Sumit Goenka, CA Revenue by : Sh. Manoj Kumar, Sr. DR Date of Hearing: 29.05.2025 Date of Pronouncement: 29.05.2025 ORDER
This assessee’s appeal for Assessment Year 2011-12, arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2023-24/1052427567(1) dated 28.04.2023, in proceedings u/s 143(3) r.w.s. 147 of the Income Tax Act, 1961 (in short “the Act”).
Heard both the parties at length. Case file perused.
Coming to the sole substantive issue between the parties regarding correctness of both the learned lower authorities’ action treating the assessee’s opening cash of Rs.3,65,800/- as unexplained, it is noticed from a perusal of the case records at page 31 comprising of his bank statement that he had withdrawn a total sum of Rs.2,35,000/- from corporation bank Niraj Kumar Murarka account. This is indeed coupled with the fact that keeping in mind the assessee’s socio economic status some past accumulations in cash in his hands could not be altogether ruled out.
Be that as it may, after having considered all the relevant facts in the instant case file, the tribunal hereby deems it appropriate in the larger interest of justice that a lump sum addition of Rs.65,000/- only would be just and proper with a rider that the same shall not be treated as a precedent. The impugned addition to the tune of Rs.3,00,000/- stands deleted. Necessary computation shall follow as per law.
This assessee’s appeal is partly allowed. Order Pronounced in the Open Court on 29/05/2025.