ANATHANARAYANAN RAJASEKARAN,NEYVELI vs. ITO, WARD-2,, CUDDALORE

Aforesaid appeal by assessee for Assessment Year (AY) 2016-17 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 22-08-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s. 144 of the Act on 19- 12-2018.

Upon perusal of assessment order, it could be seen that the assessee is engaged as ticket booking agent. The assessee deposited cash of Rs.118.25 Lacs in his bank accounts during the year but failed to file the supporting documents. Consequently, Ld. AO estimated income at 10% and made addition of Rs.11.82 Lacs. The Ld. CIT(A) confirmed the same against which the assessee is further appeal before us.

The Ld. AR placed on record profitability chart from AYs 2013-14 to 2024-25 and pleaded for a reasonable estimation. The Ld. AR submitted that the commission is received in lump sum on per ticket basis and the margins are very low. The Ld. Sr. DR opposed any interference in the estimation of income.

We concur that the assessee being a ticketing agent would receive commission on per ticket basis and therefore, its margins would be low. Considering the return of income for AYs 2013-14 to 2024-25, we direct Ld. AO to estimate the income at 2% of deposit of Rs.118.25 Lacs which would be over and above the returned income as admitted by the assessee. No other ground has been urged in the appeal.