SHANTI DEVI KUSHWAHA,BHARATPUR vs. ACIT,CIRCLE -4(2)(1), FARRUKHABAD

IN THE INCOME TAX APPELLATE TRIBUNAL “DB” BENCH, AGRA BEFORE HON’BLE SHRI SATBEER SINGH GODARA, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ ITA No. 33/Agr/2024 (िनधा�रणवष� / Assessment Year: 2017-18) Smt. Shanti Devi Kushwaha ACIT-Circle-4(2)(1) बनाम/ C-162, Ranjeet Nagar Farukhabad Vs. Bharatpur, Rajasthan �थायीलेखासं./जीआइआरसं./PAN/GIR No.DPBPK-5044-H (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : None ��थ�कीओरसे/Respondent by : Shri Shailendra Shrivastava – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 13-02-2025 घोषणाकीतारीख /Date of Pronouncement : 28-03-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017- 18 arises out of the order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 27-12-2023 in the matter of an assessment framed by Ld. AO on best judgment basis u/s 144 of the Act on 13-11-2019. At the time of hearing, none appeared for assessee and accordingly, the appeal was proceeded with the able assistance of Ld. Sr. DR who pleaded for dismissal of the appeal. 2. It could be seen that the assessment has been framed on best judgment basis. The assessee was engaged in civil contract work and it failed to produce its books of accounts before Ld. AO. Accordingly,

the books were rejected and business income was estimated @8% of contractual receipts. The assessee reflected sundry creditors of Rs.14.15 Lacs which were separately added u/s 68 r.w.s. 115BBE. The Ld. CIT(A) confirmed the assessment against which the assessee is in further appeal before us. 3. It is quite clear that the assessee has failed to furnish requisite books of accounts to substantiate its book results. Left with no option, lower authorities have rightly estimated the income of the assessee. The addition u/s 68 has been made considering the fact that the assessee could not substantiate the same. This addition could separately be made as per various judicial decisions as cited by Ld. CIT(A) in the impugned order. However, the higher rate of tax u/s 115BBE would not apply for this year as per the decision of Hon’ble High Court of Madras (Madurai Bench) in S.M.I.L.E. Microfinance Ltd. vs. ACIT (WP (MD) No.2078 of 2020 dated 19-11-2024) holding that the revenue is empowered to impose 60% rate of tax for the transactions from 01.04.2017 onwards and not prior to the said cut-off date. Therefore, the addition so made would be subjected to normal rate of tax only. The Ld. AO is directed to re-compute the income of the assessee.

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