GANESH KUMAR PAIDI,VIJAYAWADA vs. INCOME TAX OFFICER, WARD-2(4), VIJAYAWADA

Facts

The assessee filed an Income Tax Return for Assessment Year 2017-18, which was selected for scrutiny. The Assessing Officer (AO) found significant unexplained cash deposits, including during the demonetization period, exceeding the declared turnover. The AO made an addition of Rs. 73,95,320/- under Section 69A of the Income Tax Act, which was upheld by the CIT(A).

Held

The Tribunal condoned the delay of 182 days in filing the appeal, citing bonafide reasons. It noted conflicting High Court views on applying the enhanced tax rate under Section 115BBE (60%) versus the pre-amended rate (30%) for AY 2017-18. Following the principle of adopting the view favorable to the assessee in case of non-jurisdictional High Court conflicts, the Tribunal directed the AO to apply the pre-amended tax rate of 30% on the addition made under Section 69A.

Key Issues

Whether the delay in filing the appeal should be condoned; and whether the enhanced tax rate of 60% under post-amended Section 115BBE or the pre-amended rate of 30% is applicable to unexplained cash deposits under Section 69A for Assessment Year 2017-18.