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Facts
The assessee filed twin appeals against the CIT(A)'s order which reversed assessment findings on cash deposits, treating them as business income and directing assessment under Section 115BBE. The assessee did not appear during the hearing, and the case was proceeded ex-parte.
Held
The Tribunal held that the CIT(A)'s enhancement was not justified because the Assessing Officer had already treated the cash deposits as business income and assessed them at 8%. The enhancement by the CIT(A) changed the head of income, which is not permissible based on cited case law.
Key Issues
Whether the CIT(A) can enhance the income by changing the head of income when the Assessing Officer has already assessed the income under a specific head.
Sections Cited
147, 144, 69A, 115BBE, 251(1)(a)
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Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: Sh. Satbeer Singh Godara & Sh. M. Balaganesh
ORDER
Per Satbeer Singh Godara, Judicial Member:
These assessee’s twin appeals in & 270/Agr./2024 arise against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2024-25/1065273316(1) & ITBA/NFAC/S/250/2024-25/1065226188(1) order dated 29.05.2024 and 30.05.2024, for Assessment Years 2015-16 and 2017-18, in proceedings u/s 147 r.w.s. 144 of the Income Tax Act, 1961 (in short “the Act”), respectively.
Cases called twice. None appears at the assessee’s behest. He is accordingly proceeded ex-parte.
& 270/Agr./2024 Mohammad Amin 3. It transpires during the course of hearing with the able assistance coming from the Revenue side that the assessee’s identical sole substantive grievance in both the instant appeal challenges the CIT(A)’s lower appellate discussion(s) not only reversing assessment findings assessing his cash deposits; involving varying sums, as business income in capital trade etc. as unexplained money u/s 69A of the Act but also his consequential directions that the same ought to be assessed u/s 115BBE of the Act.
Mr. Srivastava vehemently argues during the course of hearing that the CIT(A)’s impugned identical lower appellate discussion has rightly invoked section 251(1)(a) enhancement in the given facts involved herein.
We find no merit to accept the Revenue’s foregoing vehement contentions. This is for the precise reason that once the Assessing Officer’s identical assessment discussion had treated the assessee’s cash deposits in both these assessment years as his business income liable to be assessed @8%, the learned CIT(A)’s enhancement could not have changed the said head income itself in light of CIT vs. Shapoorji Pallonji Mistry (1962) 44 ITR 891 (SC), CIT vs. Sardari Lal & Co. (2001) 251 ITR 864(Del.) and CIT vs. Union Tyres (1999) 240 ITR
Both these assessee’s appeals & 270/Del/2024 are allowed in above terms. A copy of this common order be placed in the respective case files.
Order Pronounced in the Open Court on 03/02/2025.