SEEMA RANI BANSAL,RAIKOT vs. INCOME TAX OFFICER, WARD - 1, RAIKOT

Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 30-10-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 144 r.w.s. 147 of the Act on 21-03-2022. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under.

To verify source of cash deposit of Rs.31.70 Lacs, the case of the assessee was reopened for this year. Since the assessee failed to make any submissions during assessment proceedings, Ld. AO added the same as unexplained money to the returned income of Rs.5.66 Lacs. The Ld. CIT(A) did not admit the appeal for want of condonation of delay of 201 days. Aggrieved, the assessee is in further appeal before us. The Ld. AR has stated that the assessee could not make representation before lower authorities due to adverse medical conditions. The Ld. AR also stated that the deposits stood fully explained by the financial statements of the assessee. The Ld. Sr. DR expressed doubts on business activities of the assessee.

We are of the opinion that considering adverse medical conditions being faced by the assessee, the appeal ought to have been admitted by Ld. CIT(A). Nevertheless, we proceed with adjudication of appeal on merits. Upon perusal of assessee’s computation of income and financial statements, it could be seen that the assessee has earned commission income and declared net profit of Rs.7.02 Lacs which has been offered to tax. The assessee has reflected all the bank accounts in her financial statements. The factum of carrying out of business has been accepted by Ld. AO since the returned income has been accepted. Apparently, the bank account is a disclosed bank account which has trading receipts of the assessee. On these facts, entire deposits could not be held to be unexplained money. To plug any possible leakage of revenue, we estimate lump sum addition of Rs.2 Lacs in the hands of the assessee and delete the remaining addition. The Ld. AO is directed to re-compute the income of the assessee.