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Facts
The assessee appealed against the order of the CIT(A) for AY 2017-18. The issue was regarding an addition of Rs. 8,74,000/- made by the AO on account of unexplained cash deposits in the assessee's bank account.
Held
The Tribunal held that out of the total addition of Rs. 8,74,000/-, an amount of Rs. 2,62,051/- was explained as income earned from business and commission, and this amount was also shown in the assessee's return. Therefore, the assessee deserves relief to this extent.
Key Issues
Whether the addition made by the AO on account of unexplained cash deposits in the bank account is justified, and to what extent relief should be granted to the assessee.
Sections Cited
250, 44AD
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Income Tax Appellate Tribunal, PATNA BENCH, VIRTUAL HEARING AT KOLKATA
Before: SRI SANJAY GARG & SHRI SANJAY AWASTHI
Ashok Kumar Prabhakar ………….. Appellant C/o M/s. Gupta Enterprises In front of Boss Company Dujra Pahalwan Ghat, Patna-800001. (PAN: AMMPP8662R) Vs. Income Tax Officer, Ward-4(1), Patna .............. Respondent Appearances: Appellant represented by: Shri Alok Kumar, Advocate Respondent represented by: Shri Ashwani Kr. Singal, JCIT Date of concluding the hearing : 15.01.2025 Date of pronouncing the order : 15.01.2025 ORDER
Per Sanjay Garg, Judicial Member:
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.
I.T.A. No.: 2/PAT/2024 Ashok Kumar Prabhakar, AY : 2017-18
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.)
I.T.A. No.: 2/PAT/2024 Ashok Kumar Prabhakar, AY : 2017-18 Copy of the order forwarded to:
1. 1. Appellant : Shri Ashok Kumar Prabhakar, 2. Respondent : ITO, Ward-4(1), Patna 3. CIT(A), NFAC, Delhi 4. CIT 5. CIT(DR), Patna Bench, Patna.