AJAY MADHUKAR UGALE,NAGPUR vs. INCOME TAX OFFICER, WARD-1(5), NAGPUR

It emerges at the outset that the relevant facts herein regarding the assessee’s sole substantive grievance seeking to reverse both the learned lower authorities action

2 ITA.No.49/NAG./2023 making sec.68 r.w.s.115BBE addition of Rs.1,95,000/-; are in a narrow compass indeed. The Assessing Officer admittedly made the corresponding addition of Rs.8,68,100/- representing assessee’s cash deposits made during demonetization period. And that the Ld. NFAC has already granted him a substantial relief by restricting the said addition of Rs.8,68,100/- to Rs.1,95,000/- as under :

Learned DR has strongly supported the impugned addition. The fact however remains that keeping in mind the assessee’s socio-economic status in light of NFAC’s findings having already granted substantial relief to him; further accumulation of cash in his hands at the time of demonetization could not be altogether ruled-out. Faced with this situation, this tribunal is of the considered opinion that a lump sum addition of Rs.1.25 lakhs only out of that in question of Rs.1,95,000/- would be just and proper with a rider that the instant estimation shall not be treated as a precedent. The assessee gets relief of Rs.65,000/- only.

This assessee’s appeal is partly allowed in above terms.