BIKASH KUMAR SAMAL,JAJPUR vs. ITO, WARD JAJPUR, JAJPUR

1 ITA No.89/Ctc/2026 Assessment Year: 2020-2021

IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI GEORGE MATHAN, JUDICIAL MEMBER AND RAJESH KUMAR, ACCOUNTANT MEMBER ITA No.89/Ctc/2026 Assessment Year: 2020-2021 Bikash Kumar Samal, At- Vs. Income Tax Officer, Ward Jajpur Alatibharatpur, Essen, PS: Thakurpatana, Jajpur-754250 PAN/GIR No.CYPPS 5022 M (Appellant) .. ( Respondent) Assessee by : Shri S.K.Sarangi, CA Revenue by : Shri Vijaya Singh, Sr DR Date of Hearing : 25/05/2026 Date of Pronouncement : 25/05/2026

O R D E R Per Bench This is an appeal filed by the assessee against the order of the ld CIT(A), NFAC, Delhi dated 20.1.2026 in Appeal No. NFAC/2019-20/10500098 for the assessment year 2020-2021. 2. Shri S.K.Sarangi, ld AR appeared for the assessee and Shri Vijaya Singh, Ld Sr DR appeared for the revenue. 3. It was submitted by ld AR that the assessee is a dealer of milk and milk products. It was the submission that in the course of assessment, it was noticed that there were deposits in the bank account of the assessee to an extent of Rs.1,17,80,335/-. It was the submission that notice u/s.133(6) had been issued to

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Milk Mantra Dairy Pvt Ltd., who had replied that the sales to the assessee was Rs.86,47,714/-. The Assessing Officer has adopted net profit @ 8% of the same as income of the assessee and in respect of the balance, same was brought to tax as unexplained monies. It was the submission that the assessee is running milk vendor shop. The assessee deals in milk products and also other food items. It was the submission that the entire deposit of the assessee is the turnover of the assessee. It was the prayer that the income of the assessee may be estimated at 5% and the addition may be deleted. 4. In reply, ld Sr DR vehemently supported the order of the Assessing Officer and ld CIT(A). 5. We have considered the rival submissions. A perusal of the facts in the present case clearly shows that the assessee is dealing in milk, milk products and other foods items. The Assessing Officer has taken the turnover of the assessee at Rs.1,17,80,335/- representing the entire deposits in the bank account of the assessee. A perusal of the bank account of the assessee shows that there are cash deposits in the bank account of the assessee, from which, the payments have been made by RTGS to Milk Mantra Dairy Pvt Ltd., as also to Chandaka Industries and Biswajit Behera. These are regular transactions. This being so, the Assessing Officer is directed herewith to treat the entire deposits of the assessee in the bank account as the turnover of the assessee in respect of his business. It is noticed that the Assessing Officer has adopted 8% as the net profit of the assessee, however, a perusal of the agreement of the assessee with Milk Mantra Diary Pvt Ltd., shows that the profit margin provided to the assessee being G.P. of the assessee is about 9.5%. Obviously,

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the assessee would have to incur certain expenses. This being so, the Assessing Officer is directed to adopt the net profit of the assessee at 6% of the turnover of Rs.1,17,80,335/-. The Assessing Officer shall, from the said net profit reduce the returned income, and bring to tax the surplus as the additional income of the assessee. 6. In the result, appeal of the assessee stands partly allowed. Order dictated and pronounced in the open court on 25/05/2026. Sd/- Sd/- (RAJESH KUMAR) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER Cuttack ; Dated 25/05/2026 RS// Copy of the Order forwarded to : 1. The Appellant : Bikash Kumar Samal, At- Alatibharatpur, Essen, PS: Thakurpatana, Jajpur- 754250 2. The Respondent: Income Tax Officer, Ward Jajpur 3. The CIT(A)-NFAC, Delhi 4. Pr.CIT, Cuttack 5. DR, ITAT, 6. Guard file. //True Copy// By order Asst. Registrar. ITAT, Cuttack