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Facts
The assessee's appeal for assessment year 2012-13 pertains to proceedings under section 147 r.w.s. 144 of the Income-tax Act. The appeal arises against the order of the CIT(A)/NFAC which upheld the addition of Rs.10.80 lakhs in cash deposits made by the assessee.
Held
The Tribunal noted that the assessee provided no justifiable explanation or evidence for the cash deposits. However, considering the assessee's socio-economic status and past savings, a lump sum addition of Rs. 5,00,000/- was deemed appropriate, with a rider that it should not be treated as a precedent.
Key Issues
Whether the addition of Rs.10.80 lakhs as unexplained cash deposits was justified, considering the assessee's socio-economic background and family savings?
Sections Cited
147, 144
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Income Tax Appellate Tribunal, AGRA BENCH, “SMC” AGRA
Before: SHRI SATBEER SINGH GODARA & SHRI M. BALAGANESH
This assessee’s appeal for assessment year 2012-13, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2024-25/1066201460(1), dated 28.06.2024, involving proceedings under section 147 r.w.s. 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Case called twice. None appears at the assessee’s behest. He is according proceeded ex-parte.
Learned departmental representative vehemently argues during the course of hearing that both the learned lower authorities have rightly added the assessee’s cash deposits of Rs.10.80 lakhs, in the relevant previous year, as unexplained during the course of assessment framed on 07.11.2019 and upheld in the lower appellate discussion. We note in this factual backdrop that the assessee has neither filed any justifiable explanation nor cogent supportive evidence explaining the source of the impugned cash deposits. The fact, however, remains that both the learned lower authorities have also not given credit of the assessee’s socio- economic statues and family’s past savings which could reasonably be estimated to a lump sum amount of Rs.5.8 lakhs in the larger interest of justice. We thus deem it appropriate that a lump sum addition of Rs. 5,00,000/- only in the given facts would be just and proper with a rider that the same shall not be treated as a precedent. The assessee gets the relief of Rs.5.80 lakhs in other words. Necessary computation shall follow as per law.
This assessee’s appeal is partly allowed.