USHA JAIN,SAGAR vs. INCOMETAX OFFICR WARD-2, SAGAR
Facts
The assessee's bank account had cash deposits of Rs. 10,67,500, which the AO added to her income under Section 69A. The CIT(A) upheld this addition. The assessee contended that the amount was business receipts and her husband, who managed her affairs, was ill and passed away, leading to a lack of proper opportunity to explain.
Held
The tribunal, based on a consensus between both parties, directed the AO to treat the Rs. 10,67,500 as business turnover and determine the assessee's income by applying a net profit rate of 15% on this amount. This effectively reduced the addition made by the AO.
Key Issues
The key legal issue was the proper treatment of unexplained cash deposits in the assessee's bank account, specifically whether it should be treated as unexplained money or business turnover with a reasonable net profit rate.
Sections Cited
Section 147, Section 144B, Section 69A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JABALPUR BENCH “SMC”, JABALPUR
Before: SHRI ANADEE NATH MISSHRA
I.T.A. No.169/JAB/2024 Assessment Year:2017-18 1 IN THE INCOME TAX APPELLATE TRIBUNAL JABALPUR BENCH “SMC”, JABALPUR (VIRTUAL HEARING) BEFORE SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER I.T.A. No.169/JAB/2024 Assessment year:2017-18 Usha Jain Vs. Income Tax Officer Ward-2 Near Nakhare Bada, Rampura Income Tax Office, Aayakar Ward, Sagar, Madhya Pradesh- Bhawan, Civil Lines, Sagar- 470002. 470001. PAN:ADKPJ4685K (Appellant) (Respondent) Appellant by Shri Sapan Usrethe, Advocate. Respondent by Shri N. M. Prasad, Sr. DR-1 O R D E R (A) This appeal vide I.T.A. No.169/JBP/2024 has been filed by the assessee for assessment year 2017-18 against impugned appellate order dated 29.05.2024 (DIN & Order No.ITBA/NFAC/S/250/2024- 25/1065217166(1) of Commissioner of Income Tax (Appeals) [“CIT(A)” for short]. (B) In this case, assessment order dated 13.09.2021 was passed by the Assessing Officer (“AO”, for short) u/s 147 read with section 144B of the Income Tax Act, 1961 (“Act”, for short) whereby the assessee’s total income determined at Rs.10,67,500/-. There were cash deposits in the bank account, totaling the aforesaid amount of Rs.10,67,500/-. The Assessing Officer made the addition of the entire amount of Rs.10,67,500/- u/s 69A of I.T. Act. Being aggrieved, the assessee filed appeal in the office of learned CIT(A). Vide impugned appellate order dated 29.05.2024, the assessee’s appeal was dismissed by the learned CIT(A).
I.T.A. No.169/JAB/2024 Assessment Year:2017-18 2 (C) At the time of hearing, the learned Authorized Representative for the assessee submitted that the Assessing Officer had not granted adequate and proper opportunity of being heard, as only one notice dated 25.07.2023 was issued during the course of assessment proceedings. It was contended that the assessment order was passed without affording sufficient opportunity to the assessee to explain the facts of the case. The learned A.R. further submitted that assessee’s business affairs were being looked after by the assessee’s husband, who was suffering from a serious kidney ailment and, after prolonged medical treatment, expired on 05.10.2017. It was also contended that the Ld. CIT(A) confirmed the action of the Assessing Officer without properly appreciating the aforesaid factual circumstances and without granting effective relief. He submitted that the aforesaid amount of Rs.10,67,500/- was the assessee’s receipts from business; and should be treated as business turnover. He further submitted that instead of the entire aforesaid amount of Rs.10,67,500/-; a reasonable percentage of net profit should be submitted. After some deliberations, representatives of both sides; the learned Counsel for the assessee and the learned Departmental Representative reached a consensus that the assessee’s income may be determined by applying net profit rate of 15% of the aforesaid amount of Rs.10,67,500/-. In view of the foregoing and as representatives of both sides are in agreement on this; aforesaid amount of Rs.10,67,500/- is to be treated as business turnover; and the assessee’s income is to be determined by applying net profit rate of 15% thereon. Considering the facts and circumstances of the case and the consensus arrived at between the parties, the Assessing Officer is directed to determine the assessee’s income by applying net profit rate of 15% on the aforesaid amount of Rs.10,67,500/-. All grounds of appeal are treated as disposed of in accordance with the aforesaid order.
I.T.A. No.169/JAB/2024 Assessment Year:2017-18 3 (E) In the result, the appeal of the assessee is partly allowed for statistical purposes.
(Order pronounced in the open court on 27/02/2026)
Sd/. (ANADEE NATH MISSHRA) Accountant Member Dated: 27/02/2026 Vijay Pal Singh, (Sr. PS)
Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T., Jabalpur
