PARAGON AGENCY,ALAPPUZHA vs. THE ASSISTANT COMMISSIONER OF INCOME TAX, ALAPPUZHA
What did the Tribunal hold?
The Tribunal restricted the addition to Rs. 1 lakh, granting relief of Rs. 11,82,500 to the assessee. This decision was made without prejudice to future assessment years or other appeals.
What were the facts?
The assessee deposited cash of Rs. 12,82,500 during the assessment year 2017-2018, attributing the source to cash in hand and regular business sales. The Assessing Officer made an addition based on this deposit.
What were the issues?
The primary issue was the validity of the addition made by the Assessing Officer on account of cash deposits, and whether the assessee had provided a satisfactory explanation for the source of these funds.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN
Before: Shri Satbeer Singh Godara & Shri Amarjit Singh
Asst.Year 2017-2018 M/s.Paragon Agency The Assistant Commissioner Vellakkinar Junction of Income-tax, Circle v. Alappuzha – 688 001. Alappuzha. PAN : AACFP3821E. (Appellant) (Respondent) Appellant by : Sri.R.Krishnan, CA Respondent by : Smt.V.Swarnalatha, Sr.DR Date of Pronouncement : 07.11.2024 Date of Hearing : 23.08.2024 O R D E R Per Bench : This assessee’s appeal in for assessment year 2017-2018 arises out of the order of the Commissioner of Income-tax (Appeals) / NFAC vide DIN & Order No.ITBA/NFAC/S/250/2023-24/1058025948(1) dated 17.11.2023 in proceedings u/s.143(3) of the Income-tax Act, 1961; in short “the Act” hereinafter.
Heard both the parties. Case file perused.
The assessee’s sole substantive ground challenges sec.69 r.w.s. 115BBE addition of Rs.12,82,500 made in lower proceedings. We note during the course of hearing that the assessment year before us is A.Y. 2017-2018 and the tax payer / appellant had indeed deposited the said cash and . M/s.Paragon Agency. attributed source thereof to the cash in hand as well as regular business sales. We emphasize here that there is not much issue between the parties since the Assessing Officer himself had not disputed that the assessee having deposited specific bank notes than disputed business sales in particular. This of course would not mean that the assessee has been able to reconcile each and every cash entry with its corresponding sales entries. Be that as it may, faced with the situation, we deem it appropriate to restrict the impugned addition of Rs.12,82,500 to sum of Rs.1 lakh only subject to a rider that the same should not be taken as a precedent for the subsequent assessment years or in any other appeal. The assessee gets relief of Rs.11,82,500 in other words.
This assessee’s appeal ITA.No.26/Coch/2024 is partly allowed in above terms. Ordered accordingly.
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