NEMICHAND,AGRA vs. INCOME TAX OFFICER WARD 2(1)(3), AGRA
Facts
The assessee appealed against the addition of cash deposits to their income for AY 2011-12 and 2012-13. The Assessing Officer made these additions on best judgment basis due to lack of explanation from the assessee. The assessee claimed the deposits were from agricultural and business income.
Held
The Tribunal found that the assessee possessed a license for selling seeds and fertilizers, and the cash deposits were likely used for these business activities. Therefore, the entire deposits could not be added to the income.
Key Issues
Whether the entire cash deposits in the bank account could be added to the assessee's income when the assessee provided evidence of agricultural and business activities.
Sections Cited
144, 147
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH, AGRA
Before: HON’BLE SHRI SATBEER SINGH GODARA, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AGRA BEFORE HON’BLE SHRI SATBEER SINGH GODARA, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपील सं. / ITA No.228/Agr/2024 (िनधा�रण वष� / Assessment Year: 2011-12) & 2. आयकरअपील सं. / ITA No.229/Agr/2024 (िनधा�रण वष� / Assessment Year: 2012-13) Nemi Chand ITO-2(1)(3) बनाम/ (rep. by Smt. Bharti Gupta) Agra Gopal Pura, Shamsabad Vs. UP 283125 �थायीलेखासं./जीआइआरसं./PAN/GIR No. AJNPN-1996-N (अपीलाथ�/Appellant) (��थ� / Respondent) : अपीलाथ�कीओरसे/ Appellant by : Shri S.C. Jain (Advocate) – Ld. AR ��थ�कीओरसे/Respondent by : Shri Shailender Shrivastava – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 21-02-2025 घोषणाकीतारीख /Date of Pronouncement : 28-03-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)
Aforesaid appeals by assessee for Assessment Years (AY) 2011- 12 & 2012-13 arises out of separate orders of learned first appellate authority. First we take up appeal for AY 2011-12 which arises out of an order passed by learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 05-04-
2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 144 r.w.s. 147 of the Act on 17-12- 2018. Having heard rival submissions, the appeal is disposed-off as under. The sole grievance of the assessee is confirmation of addition of cash deposit for Rs.12.08 Lacs. 2. During assessment proceedings, it transpired that the assessee deposited cash of Rs.12.08 Lacs in its bank accounts. In the absence of any reply as forthcoming from the assessee, Ld. AO added the same to the income of the assessee. 3. During appellate proceedings, it was submitted by the assessee that it derived income from agricultural activities and trading of fertilizers. It was stated that the assessee and his family members owned agricultural land and the assessee declared agricultural income of Rs.3.05 Lacs and also declared business income of Rs.1.52 Lacs from sale of fertilizers. The deposits were stated to be sourced out of these receipts. However, Ld. CIT(A) rejected the submissions for want of requisite documentary evidences. Aggrieved, the assessee is in further appeal before us. 4. Upon perusal of documents on record, it could be ascertained that the assessee held license from District Agricultural Officer since July, 2010 for sale and purchase of seeds. The substantial cash deposited in the bank account has apparently been utilized towards purchase of seeds / fertilizers. Under these circumstances, entire deposits could not be added to the income of the assessee. We
estimate business income of 8% on cash deposit of Rs.12.08 Lacs and direct Ld. AO to re-compute the income of the assessee. 5. Facts in AY 2012-13 are quite similar. The Ld. AO made similar addition of Rs.24.09 Lacs which was confirmed by Ld. CIT(A) against which the assessee is in further appeal before us. Facts being pari- materia the same, we estimate business income of 8% against the same and direct Ld. AO to re-compute the income of the assessee. 6. Both the appeal stands partly allowed. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963.
Sd/- Sd/- (SATBEER SINGH GODARA) (MANOJ KUMAR AGGARWAL) �ाियक सद� /JUDICIAL MEMBER लेखा सद� /ACCOUNTANT MEMBER Dated: 28-03-2025 आदेश की �ितिलिप अ�ेिषत / Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF ASSISTANT REGISTRAR
ITAT AGRA
