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Income Tax Appellate Tribunal, “SMC” BENCH, AGRA
Before: HON’BLE SHRI SATBEER SINGH GODARA, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)
Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of the order of learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 26-10-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s. 144 of the Act on 07-11-2019. The registry has noted delay of 325 days in the appeal which stand condoned.
The case was subjected to scrutiny assessment on the ground that the assessee deposited cash of Rs.36.24 Lacs during demonetization period. Accordingly, the assessee was directed to establish the source of the same. No return of income was filed by the assessee for this year.
Since no explanation was forthcoming from the assessee, Ld. AO, after analyzing the bank statements, added Rs.10.64 Lacs as deposited during demonetization period u/s 69A. On the remaining credits, Ld. AO estimated business income of 8% and finalized the assessment at Rs.13.28 Lacs. The Ld. CIT(A) confirmed the same against which the assessee is in further appeal before us.
It is clear that Ld. AO has accepted the factum of business of the assessee. In such a case, artificial bifurcation of credit entries as done by Ld. AO could not be held to be justified. All the receipts apparently constitute business receipts only. On these facts, we direct Ld. AO to estimate business income of 8% on entire credits. The higher rate of tax as prescribed u/s 115BBE would not apply.
The appeal stands partly allowed. Order pronounced on 19th February, 2025.