SMT. SURBHI JAIN,INDORE vs. THE ITO2(1), INDORE

This appeal is filed by the assessee against the order dated 10.06.2019 passed by the CIT(A)-I, Indore for the Assessment Year 2010-11.

The ground of appeal are as under:

The assessee filed return under Section 148 of the Income Tax Act, 1961 on 27.07.2017 showing total income of Rs.1,07,395/-. The Assessing Officer assessed the total income of Rs.9,57,400/- by adding cash deposited in Bank by the assessee during the year. The Assessing Officer observed that the cash deposit amounting to Page 2 of 3 Rs.8,50,000/- remains to be unexplained and added the same as unexplained cash credit under Section 68 of the Act.

Being aggrieved by the assessment order, the assessee filed appeal before the CITA . The CIT(A) partly allowed the appeal of the assessee.

At the time of hearing none appeared on behalf of the assessee despite giving notice. Therefore, we are proceeding on the basis of the submissions made by the assessee before the Assessing Officer as well as before the CIT(A).

The Ld. DR relied upon the assessment order and the order of the CIT(A).

We have heard the Ld. DR and perused all the relevant material available on recorded. It is pertinent to note that the Revenue has taken on record the statement of the purchaser Shri Rajesh Farkiya who is the purchaser of the plot and he has confirmed the fact that there was sale of plot and the amount of advance received/paid was Rs.3,50,000/-. Thus, the confirmation was before the Assessing Officer and the same was totally ignored/doubted without any basis by the Assessing Officer. The assessee has explained the amount received from the purchaser i.e. Rs.3,50,000/- and thus the CIT(A) was not right in confirming the balance amount to that extent.

In the result, appeal of the assessee is allowed.