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Facts
The Revenue filed an appeal against the appellate order deleting an addition of Rs.1,39,00,930/- made on account of unexplained credit entries. The assessee had deposits of Rs.1.42 crores in their bank account.
Held
The Tribunal upheld the deletion, finding that the assessee was a distributor of Idea Cellular Ltd. and the amounts pertained to Sim Card sales. The profit computation by the CIT(A) was also affirmed.
Key Issues
Whether the credit entries in the bank account were unexplained and liable for addition under section 69A, and whether the profit computation by the CIT(A) was correct.
Sections Cited
69A, 144
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Income Tax Appellate Tribunal, AHMEDABAD “D” BENCH
Before: DR. BRR, KUMAR & SHRI SIDDHARTHA NAUTIYAL
Revenue Represented: Shri V K Mangla, Sr.DR. Assessee Represented: Shri Fenil H Mehta, AR. Date of hearing : 17.02.2025 Date of pronouncement : 18.02.2025 आदेश/ORDER PER : DR. BRR KUMAR, VICE PRESIDENT:
This appeal is filed by the Revenue as against the appellate order dated 19.02.2024 passed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2017-18. 2. The Revenue has raised the following grounds of appeals: (a) The Ld.CIT(A) has erred in law and on facts in deleting the addition of Rs.1,39,00,930/- out of total addition of Page No 2 Rs.1,42,87,808/- made on account of unexplained credit entries in bank account u/s.69A of IT Act. (b) The appellant craves leave to add, alter and/or to amend all or any the ground before the final hearing of the appeal.
3. Heard both the parties and perused the material available on record. The assessee had deposits of Rs.1.42 crores which includes cash deposit of Rs.13.71 lakhs. The Assessing Officer in the order passed u/s 144 made addition of entire credit entries Rs.1.42 crores u/s 69A of the Act. The Ld. CIT(A) has succinctly examined the entire evidences and gave a categorical finding that the assessee is a distributor of Idea Cellular Ltd. and the entire amount pertains to sale of Sim Cards. The assessee has also purchased Sim Cards with the amounts received. The assessee has also shown profit @ 1.96% on this amount. The Ld. CIT(A) recomputed the profit @ 2.5%. Since the fact of assessee being distributor of the Sim Cards is not in dispute, the profit computed by Ld. CIT(A) after going through the entire cash deposits, other credits, payments made to Idea Cellular Ltd., we decline to interfere with the well- reasoned order of the Ld. CIT(A).
In the result, the appeal of the Revenue is dismissed.