SMITA RAJESH KASAR,JALGAON vs. INCOME TAX OFFICER, WARD - 1(2), JALGAON

आदेश / ORDER PER R.S. SYAL, VP : This appeal by the assessee arises out of the order dated 28-03-2022 passed by the National Faceless Appeal Centre (NFAC), Delhi u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act.) in relation to the assessment year 2017-18. 2. The only issue raised in this appeal is against the confirmation of addition of Rs.5,14,500/-. 3. Briefly stated, the facts of the case are that the assessee is running a business of Beauty Parlour. A return of income was filed declaring total income of Rs.3,14,700/-. During the course of assessment proceedings, the Assessing Officer (AO) observed that a sum of Rs.5,14,500/- was deposited in the bank account. On being called upon to explain the source of the deposit, the assessee submitted that the amount came out of her business receipts earned during this year as well as preceding years. Not convinced, the AO made addition for the amount deposited. The assessee remained unsuccessful before the ld. CIT(A).

Such return was filed on 10-07-2013. Similarly, for the next assessment year 2014-15, the return of income was filed on 30-11-2014 with total income at Rs.2,24,979/-. The return for the A.Y.2015-16 was filed on 26-10-2015 with total income at Rs.2,35,380/-. The return for the A.Y. 2016-17 was filed on 04-08-2016 with total income at Rs.2,83,420/- followed by the return for the assessment year under consideration, namely, 2017-18 with total income at Rs.3,14,700/-. This shows that the assessee was regularly filing the returns from the A.Y. 2012-13 onwards within the time allowed u/s.139(1) declaring total income of around Rs.2.00 lakh and above. Such returns were accompanied by Receipt and payment statement, Capital account and Balance sheets. The Balance sheet for the immediately preceding assessment year as on 31-03-2016, which has not been disputed, shows closing cash balance of Rs.5.00 lakh.

Income for the year under consideration was shown at Rs.3,14,700/-. Out of such total income plus the cash in hand available coming from the preceding years, the assessee deposited a sum of Rs.5,14,500/- in her bank account, leaving closing cash in hand at Rs.2.00 lakh. In my considered opinion, the assessee has successfully explained the source of deposit in her bank account. I, therefore, order to delete the addition.