SUJIT BISWAS,NADIA vs. I.T.O., WARD - 41(2), NADIA, NADIA

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ITA 1515/KOL/2024Status: DisposedITAT Kolkata08 January 2025AY 2016-2017Bench: SHRI RAJESH KUMAR (Accountant Member), SHRI PRADIP KUMAR CHOUBEY (Judicial Member)5 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the cash deposits were explained by the assessee's business activities, including sales made on his own behalf and commission earned as an agent. The Tribunal found that the assessee had provided sufficient evidence to explain the source of the cash.

What were the facts?

The assessee, engaged in vegetable sales and as a commission agent, deposited a significant amount of cash into his bank account. The Assessing Officer (AO) treated a portion of these deposits as unexplained cash credit due to a mismatch with declared sales.

What were the issues?

Whether cash deposits into a bank account can be treated as unexplained cash credit under Section 68 when the assessee provides evidence of business transactions and commission income explaining the source.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, KOLKATA

For Appellant: Shri Dilip Chatterjee, AR
For Respondent: Shri P.N. Barnwal, DR
Hearing: 12.12.2024Pronounced: 08.01.2025

O R D E R Per Rajesh Kumar, AM:

This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 28.03.2024 for the AY 2016-17.

2.

The various grounds raised by the assessee is against the confirmation of addition of ₹1,00,95,750/- by ld. CIT (A) as made by the ld. AO u/s 68 of the Act on account of cash deposit in ICICI Bank.

3.

The facts in brief are that the assessee filed his return of income on 02.08.2016, by declaring total income at ₹2,92,240/-. The assessee engaged in the business of purchase and sale of vegetables and also acting as a commission agent on behalf of fruit suppliers/ growers. The case of the assessee was selected for limited scrutiny for verification of cash deposits into the bank account. Accordingly, the statutory notices were duly issued and served upon the assessee

4.

After hearing the rival contentions and perusing the materials available on record, we find that the assessee is a commission agent engaged in the business of acting as a middleman for procuring fruit / vegetables and supplying to the shop keepers on commission basis for which the assessee has charged commission. The assessee has also made some purchases and sales of fruits and vegetables on his own account which were also shown in the profit and loss account of the

5.

In the result, the appeal of the assessee is allowed.

Order pronounced in the open court on 08.01.2025.

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