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Facts
The assessee's cash deposits of Rs. 17.52 lakh in a savings account were treated as unexplained by the lower authorities. The Revenue contended these deposits were unexplained and sought their assessment. The case proceeded ex parte as the assessee did not appear.
Held
The Tribunal noted that the Assessing Officer had previously accepted the assessee's other deposits of Rs. 13,38,200/- as regular business receipts assessable at 8% under section 44AB. Applying the same logic, the Tribunal directed that the impugned cash deposits of Rs. 17,52,200/- also be treated as regular business receipts and assessed at 8%, with the caveat that this estimation should not set a precedent.
Key Issues
Whether cash deposits in a savings account, treated as unexplained by lower authorities, should be accepted as regular business receipts and assessed on an estimated basis, consistent with past treatment of similar deposits.
Sections Cited
Section 250, Section 44AB
AI-generated summary — verify with the full judgment below
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 2011-12 arises against DIN and order no. ITBA/NFAC/S/250/2024-25/1064981029(1), dated 17.05.2024 of the CIT(Appeals)/National Faceless Appeal Centre (NFAC), Delhi, in appeal no. CIT(A), Meerut/10282/2018-19 in proceedings u/s 250 of the Income-tax Act, 1961. Case called twice. None appears at the assessee’s behest. He is accordingly proceeded ex parte.
It emerges during the course of hearing as per the assessee’s pleadings and Revenue’s vehement contention that both the lower authorities have treated assessee’s cash deposits of Rs. 17.52 lakh in saving account maintained with Syndicate Bank, as unexplained.
3. Learned Departmental Representative could hardly dispute the clinching fact that the Assessing Officer had himself accepted assessee’s claim regarding his other deposits of Rs. 13,38,200/- as arising from regular business activities eligible for estimation @ 8% u/s 44AB of the Act. That being the case, the only inference which can be drawn is that assessee’s impugned cash deposits also deserve to be accepted as regular business receipts, liable to be assessed @ 8%. Ordered accordingly with the rider that the instant estimation shall not be treated as a precedent in any other case or assessment year, as the case may be. Learned AO is directed to finalize his consequential computation for assessing the impugned sum of Rs. 17,52,200/- @ 8% thereon.
This assessee’s appeal is partly allowed.
Order pronounced in open court on 05.11.2024.