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Facts
The assessee's appeal arose from proceedings under Section 147 of the Income Tax Act for AY 2020-21. The lower authorities assessed cash credits and deposits in the assessee's bank account, totaling Rs. 3,55,29,291, derived from his business in "Arhat" and commission agency.
Held
The Tribunal found merit in both parties' stands, acknowledging the assessee's failure to discharge the onus of reconciliation and the Revenue's estimation of 8% being too high for the unorganized business. A lump sum addition of Rs. 15,00,000 was deemed appropriate on an estimation basis, without setting a precedent.
Key Issues
Whether the estimation of income from cash credits and deposits was justified and whether the assessee had discharged the onus of reconciliation.
Sections Cited
147, 143(3)
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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
Asstt. Year : 2020-21 Ashan Ali, Vs Assessment Unit/Income Mirzapur Poli, Tehsil Behat, Tax Officer, Ward-3(3)(3), Saharanpur, U.P.-247121 Saharanpur-247001 (APPELLANT) (RESPONDENT) PAN No. ARJPA9770B Assessee by: None Revenue by : Sh. Manoj Kumar, Sr. DR Date of Hearing: 30.10.2025 Date of Pronouncement: 30.10.2025 ORDER
This assessee’s appeal for Assessment Year 2020-21, arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2025-26/1078871098(1) dated 24.07.2025, in proceedings u/s 147 of the Income Tax Act, 1961 (in short “the Act”).
Case called twice. None appears at the assessee’s behest. He is accordingly proceeded ex-parte.
It next emerges with the able assistance coming from the Revenue side that both the learned lower authorities have assessed the assessee’s cash credits and deposits in his bank account; as the case may be, totaling to Rs.3,55,29,291/- @ 8%; to the tune of Rs.28,42,343/- after holding the same to have been derived from his regular business in “Arhat” and
Faced with this situation, the tribunal hereby sees only a part merit in both the party’s respective stands. This is for the precise reason that the assessee all along has not satisfactorily discharged his onus of reconciliation and factual verification of all these credit entries vis-à-vis his business turnover. The Revenue could also not support the impugned estimation @8% which is found to be a bit too higher in such an unorganized business of fruit commission agent business. Be that as it may, it is thus deemed appropriate in the larger interest of justice that a lump sum addition of Rs.15,00,000/- only on estimation basis 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 relief of Rs.13,42,343/- in other words. Necessary computation shall follow as per law.