ASHOK KUMAR PRABHAKAR,PATNA vs. ITO, WARD- 4 (1), PATNA

The captioned appeal has been preferred by the assessee against the order dated 02.05.2023 of the Ld. Commissioner of Income Tax (Appeal), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ld. ‘CIT (A)’] u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) for Assessment Year (AY) 2017-18.

The sole issue involved in this appeal is relating to the addition made by the Assessing Officer (AO) of Rs.8,74,000/- on account of unexplained cash deposits in the bank account of the assessee during the year under consideration.

At the outset, Ld. Counsel for the assessee has relied on various documents and submissions to submit that out of the total deposit of Rs.8,74,000/- the source of the amount of Rs.2,62,051/- was out of the income earned by the assessee from its business of sale of mobil and commission income from companies. The Ld. Counsel has further submitted that the assessee was not supposed to maintain books of account as the income of the assessee was less than the prescribed amount for filing return of income and further that the return was filed u/s. 44AD of the Act. The Ld. Counsel, therefore, has submitted that the assessee is entitled to the relief to the extent of Rs.2,62,051/- i.e. the income which was shown by the assessee in the return of income.

The Ld. DR has relied on the finding of the lower authorities.

After considering the rival submissions, we are of the view that out of the total addition made by the AO of Rs.8,74,000/- the assessee deserves relief to the extent of Rs.2,62,051/- as the source of the said deposit has been explained by the assessee and the same amount has also been shown by the assessee as his income in the return of income. We accordingly, hold that the source of the said amount of Rs.2,62,051/- be accepted as explained out of the total addition made of Rs.8,74,000/-. The remaining addition made by the AO is upheld. Appeal of the assessee is treated as partly allowed. 6. In the result, appeal of the assessee is treated as partly allowed. Order pronounced in the open Court on 15th January, 2025. Sd/- Sd/- [Sanjay Awasthi] [Sanjay Garg] Accountant Member Judicial Member Dated: 15.01.2025 J.Dey (Sr. P.S.)