RAJESH KUMAR,MAINPURI vs. NATIONAL FACELESS ASSESSMENT CENTRE, DELHI

Aforesaid appeal by assessee for Assessment Year (AY) 2016-17 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 12-06- 2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 147 r.w.s. 144B of the Act on 25-03-2022. The sole grievance of the assessee is confirmation of addition of Rs.4 Lacs. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under.

The assessee runs a fair price shop and it declared income of Rs.4.95 Lacs. It was noted that the assessee purchased a property for Rs.27.94 Lacs out of which amount of Rs.18.47 Lacs was paid in FY 2011-12 whereas the remaining amount of Rs.7 Lacs was paid in the current year. The same was stated to be sourced out of bank withdrawals, business income and maturity proceeds of LIC. The assessee’s submissions were subjected to remand proceedings in the first appeal. The assessee maintained that the payments were made out of earlier bank withdrawals which are detailed on Page No.10 of the impugned order. The Ld. CIT(A) rejected the same by observing that there was gap of more than 80 days / 6 months between withdrawal and payments and therefore, the explanation could not be accepted except for an amount of Rs.3 Lacs since the withdrawals were on the same day. Aggrieved, the assessee is in further appeal before us.

We find that there is no alternative usage of bank withdrawals has been brought on record. Merely because the withdrawals were much earlier, the same could not be disbelieved. Considering the peculiar facts of the case, we restrict the impugned addition to the extent of Rs.0.50 Lacs and delete the remaining addition.

The appeal stand partly allowed. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963.