ETI RANI DEY,HOOGHLY vs. ACIT, CIR-1, BWN, BURDWAN

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ITA 450/KOL/2015Status: DisposedITAT Kolkata15 March 2019AY 2009-20103 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal found that the cash deposits were likely related to potato dealing transactions. Therefore, a lump sum addition of the estimated profit element at 10% was deemed appropriate to meet the ends of justice.

What were the facts?

The assessee made cash deposits of ₹45.15 lac in her bank account. She explained the source as loans from seventeen parties engaged in potato brokerage business. The Assessing Officer added the entire amount as unexplained cash credits.

What were the issues?

Whether the cash deposits made by the assessee were unexplained cash credits, and if so, what was the appropriate addition to be made.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA BENCH “C” KOLKATA

Before: Shri S.S.Godara & Dr. A.L. Saini

O R D E R

PER S.S.Godara, Judicial Member:

1.

- This assessee’s appeal for assessment year 2009-10 arises against the Commissioner of Income Tax (Appeals)-Burdwan’s order dated 25.02.2015 passed in case No.296/CIT(A)/ASL/ACIT/Cir-1/BWN/1112, involving proceedings u/s 143(3) of the Income Tax Act, 1961; in short ‘the Act’. Case called twice. None appears at assessee’s behest. We thus proceed ex parte against the assessee in the instant case.

2.

The assessee’s sole substantive ground raised

in the instant appeal challenges correctness of both the lower authorities’ action adding her entire A.Y. 2009

10. Eti Rani Dey vs. ACIT, Cri-1,BWN Page 2 cash deposits amounting to ₹45.15 lac as unexplained cash credits u/s 68 of the Act.

3.

There is no dispute about the basic fact that the assessee had indeed made the impugned cash deposit in her bank account. The sole question before us as to whether she has satisfied the three folded use of identity, genuineness and creditworthiness of the said seventeen parties as source thereof or not. This assessee has admittedly derived income from a partnership firm. She explained before the Assessing Officer that the impugned sum had come from Shri Uttam Kumar Das, Tanusi Dey, Sk. Hasnat Ali, Manab Adhikary, Asis Ghosh, Jyotiprakash Dey, Debasis Kundu, Manoranjan Kundu, Manoranjan Kundu, Asit Choudhury, Anonto Guin, Sk. Mozaffar, Joydeb Soo, Ohab Mondal, Susanta Karmakar, Ramesh Chandra Das, Prosanna Some, Laxmi Narayan Mondal, Balash Banerjee & Ansar Ali Sekh; involving various amounts. We find from assessment order dated 27.12.2011 that the assessee could produce almost all of said parties before the Assessing Officer for necessary factual verification. The said creditors confirmed the assessee’s version regarding the sum involved in their respective cases. The Assessing Officer declined the said explanation on the ground that almost all of them had been engaged in potato brokerage commission business. They did not have means to lend so much money on credit to the assessee. He therefore treated assessee’s cash deposits as unexplained liable to be assessed u/s. 68 of the Act. The CIT(A) has confirmed the impugned in his lower appellate proceedings.

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