SANDEEP YASHWANT PAWASKAR ,RATNAGIRI vs. INCOME-TAX OFFICER, WARD 1, RATNAGIRI

This is an appeal filed by the Assessee against the order of ld.Commissioner of Income Tax(Appeal)[NFAC] passed under section 250 of the Income Tax Act, 1961 for the A.Y.2017-18dated 03.07.2025 emanating from the Assessment Order passed under section 144B of the Act, dated 02.12.2019. The Assessee has raised the following grounds of appeal :

We have heard both the parties and perused the records. In this case, the Assessing Officer observed that Assessee has not filed Return of Income for A.Y.2017-18. Assessing Officer received information regarding cash deposits by Assessee in his bank account. Assessing Officer issued notice u/s.142 of the Act. But Assessee failed to reply. Assessing Officer issued a show cause notice, however, Assessee failed to reply to the notice. Assessing Officer observed that there were cash deposits of Rs.26,21,500/- and other deposits of Rs.1,05,85,837/- in his bank account. In the assessment order, Assessing Officer also observed that Assessee had filed Return of Income for A.Y.2016-17 declaring himself as Mango 2 Trader under the Trade Name “Mayur Mango Suppliers”. For A.Y.2016-17, Assessing Officer observed that Assessee had declared 10% profit u/s.44AD of the Act. Since there was no compliance, Assessing Officer passed an order u/s.144 for A.Y.2017-18 on 02.12.2019. The Assessing Officer made addition u/s.69A of the Act, of Rs.26,21,500/-. Regarding the non-cash deposits of Rs.1,05,85,837/-, Assessing Office in the assessment order treated it as business receipt and added 10% of the total deposits of Rs.1,05,85,837/-.

Aggrieved by the Assessment Order, assessee filed appeal before the ld.CIT(A) who confirmed the Assessment Order.

Aggrieved by the order of ld.CIT(A), Assessee filed appeal before this Tribunal.

Ld.Authorised Representative(ld.AR) for the Assessee filed a paper book. Ld.AR submitted that Assessee has regularly filed Return of Income. Ld.AR filed copies of Return of Income for A.Y.2015-16, A.Y.2016-17 and A.Y.2018-19 at page no.2 to 15 of the paper book. Ld.AR admitted that due to some reasons, Assessee could not file Return of Income for A.Y.2017-18. Ld.AR submitted that Assessee is Mango Trader and this fact has been accepted by 3 Assessing Officer. Ld.AR further submitted that during the relevant Assessee has withdrawn Rs.60,99,000/- from the Bank Account. Ld.AR took us through the bank statement which is at page no.16 to 27 of the paper book. Ld.AR submitted that the cash deposit made during demonetization period of Rs.26,21,500/- were sourced from the cash withdrawals of Rs.60,99,000/- made prior to demonetization.

Ld.Departmental Representative(ld.DR) for the Revenue relied on the order of Assessing Officer.

It is a fact that Assessee is a Mango Trader, this fact has been accepted by the Assessing Officer in the Assessment Order and it is also observed from the Return of Income filed by Assessee for A.Y.2015-16, A.Y.2016-17 and A.Y.2018-19. The turnover shown by Assessee is as under : A.Y. Total Turnover Profit shown under % of 44AD profit 2015-16 Rs.72,34,228/- Rs.5,81,375/- 8% 2016-17 Rs.80,25,600/- Rs.6,70,525/- 8.35% 2018-19 Rs.91,42,039/- Rs.7,55,479/- 8.20% 7.1 Thus, Assessee has shown Profit under section 44AD in his Return of Income for the above years. Assessee has shown net profit of around 8%.

In the result, appeal of the assessee is partly allowed. Order pronounced in the open Court on 27 November, 2025.