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Facts
The assessee, engaged in wholesale vegetable trading, challenged an addition of Rs. 19,62,200/- made by lower authorities for Assessment Year 2012-13. This addition represented unexplained/undisclosed income from cash deposits in his bank account. The appeal was filed against an order by the National Faceless Appeal Centre (NFAC) in proceedings under Section 144 of the Income-tax Act.
Held
The Tribunal deemed it appropriate to make a lump sum addition of only Rs. 2,00,000/-, thereby providing relief of Rs. 17,62,200/- to the assessee. It was explicitly stated that this estimation would not set a precedent for any other case or assessment year.
Key Issues
Whether the addition of Rs. 19,62,200/- as unexplained cash deposits in the assessee's bank account, made by lower authorities, was justified, considering his wholesale vegetable trading business in the unorganized sector.
Sections Cited
Section 144 of the Income-tax Act, 1961
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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA
O R D E R
PER SATBEER SINGH GODARA, JM:
This assessee’s appeal for assessment year 2012-13 arises against National Faceless Appeal Centre (NFAC), Delhi’s DIN and order no. ITBA/NFAC/S/250/2023-24/1060132708(1), dated 25.01.2024, in case no. CIT(A), Faridabad/10495/2019-20, in proceedings u/s 144 of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’.
Heard both the parties at length. Case file perused.
Coming to the assessee’s sole substantive ground challenging both the lower authorities’ action making unexplained/ undisclosed income addition amounting to Rs. 19,62,200/- representing his cash deposits in bank account, the admitted factual position, which emerges from the case file is that he is engaged in wholesale vegetable trading business, which falls in unorganized sector coupled with cash transactions only at predominant level.
This being the clinching case emerging from the appeal file, I hereby deem it appropriate that a lump sum addition of Rs. 2,00,000/- only would be just and proper with a rider that the instant estimation would not form a precedent in any other case or assessment year, as the case may be. The assessee gets relief of Rs. 17,62,200/- in other words. Necessary computation shall follow as per law.
This assessee’s appeal is partly allowed in above terms.
Order pronounced in open court on 27.11.2024.