MUTHUSAMY K,COIMBATORE vs. I T OFFICER, NON-CORP WARD 2(1), COIMBATORE, COIMBATORE

This appeal by the Assessee is arising out of the order of the Commissioner of Income Tax (Appeals), Coimbatore, National Faceless Appeal Centre [NFAC], Delhi in Appeal No.2/10285/2019- 20, dated 25.08.2021. The assessment was framed by the Income Tax Officer, Non-Corporate Ward – 2(1), Coimbatore for the Assessment Year 2017 – 2018 vide his order u/s.144 of the Income Tax Act, 1961 (hereinafter ‘the Act’) vide order dated 05.08.2019.

The only issue in this appeal of the Assessee is as regards to the order of the CIT(A) in confirming the action of the Assessing Officer in making an addition of the unaccounted income u/s.69A of the Act, being 5% of the total deposits made in the bank account.

The Ld. AR assailed the application of Sec.69A & Sec.115BBE whereas Ld. DR justified the assessment framed by Ld. AO. Having heard rival submissions, our adjudication would be as under.

The assessee being resident individual is stated to be engaged in trading of edible oil. During assessment proceedings, it transpired that the assessee deposited a sum of Rs.1,13,96,490/- bank accounts maintained with Bank of Baroda. The assessee did not file the return of income and summons were issue to the assessee u/s

The assessee submitted that he was engaged in trading of edible oils. The payments from customers were received in cash which was deposited in Bank account. It was submitted that regular books were not maintained by the assessee. Considering the same, Ld. AO estimated profit of 5% and added the same to the income of the assessee u/s 69A as unaccounted money which would be assessable at higher rate of tax u/s 115BBE. The Ld. CIT(A) confirmed the action of Ld. AO since the assessee failed to furnish any documentary evidences. Aggrieved, the assessee is in further appeal before us.

In the result, the appeal of the Assessee stands partly allowed.