FARIYAD,RAMPUR V. ITO,WARD-1(2), RAMPUR-1

ITA 4177/DEL/2024

AI Insights

The case involves an appeal by Fariyad against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, which pertained to an assessment under section 144 of the Income-tax Act, 1961. The Assessing Officer had initially made a 'Best Judgment' assessment, estimating the assessee's turnover and profit. The CIT(A) modified some of these additions, which led to the current appeal. The Tribunal considered the submissions of both parties and the relevant legal provisions, ultimately deciding to partly allow the appeal by modifying the additions made under section 69A read with section 115BBE.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 26199 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Other Referred Cases: S.M.I.L.E. Microfinance Ltd. Vs. ACIT, W.P. (MD) No.2078 of 2020 & 1742 of 2020
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANJAY KUMAR
• Assessee Lawyers: K. SAMPTATH
• Section: 144; 69A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘SMC’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER ITA No.4177/Del/2024 Assessment Year: 2017-18 Fariyad, H. No. 33G, Vill- Bhatpurataran, Bilaspur, Rampur, Uttar Pradesh Vs. Income Tax Officer, Ward-1(2), Rampur-1 PAN :ABTPF0976E (Appellant) (Respondent) ORDER This assessee’s appeal for assessment year 2017-18, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2024-25/1066838803(1), dated 19.07.2024 involving proceedings under section 144 of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act’). 2. Heard both the parties at length. Case file perused. Assessee by Sh. K. Samptath, Adv. Department by Sh. Sanjay Kumar, Sr. DR Date of hearing 21.01.2025 Date of pronouncement 21.01.2025 ITA No.4177/Del/2024 2 | P a g e 3. It emerges that the learned Assessing Officer had framed his section 144 “Best Judgment” assessment on 4th December, 2019, inter alia, assessing the assessee’s turnover figures of Rs.1,10,53,997/- @ 12% (going by the other assessment years’ admitted profit rate) coming to Rs.13,26,480/- followed by section 69A r.w.s.115BBE addition amounting to Rs.26,20,500/-, respectively, which has been modified since the learned CIT(A) has restricted the latter addition of Rs.15,20,500/-; after granting relief of Rs.11,00,000/- in issue. It is in this factual backdrop that the assessee has filed his instant appeal. 4. I have given my thoughtful consideration to the assessee’s pleadings and Revenue’s vehement contentions against and in support of the impugned estimated GP addition. So far as the assessee’s substantive first and foremost plea challenging GP rate estimated @ 12% is concerned, the learned lower authorities have fairly gone by the very figure declared in his earlier returns. That being the case, the tribunal’s find no merit in his instant corresponding substantive grounds. Rejected accordingly. ITA No.4177/Del/2024 3 | P a g e 5. Next comes section 69A r.w.s. 115BBE addition of Rs.15,20,500/-, the Revenue could hardly dispute the fact that the assessee has already been subjected the estimated GP rate. Faced with this situation, the tribunal is of the considered view that the asessee’s impugned cash deposits also deserve to get assesssed at the very rate in the given set of facts as they represent the cash turnover in poultry business. His second substantive ground raised in the instant appeal is partly allowed in very terms. 6. So far as assessee’s assessment under section 115BBE is concerned, I quote S.M.I.L.E. Microfinance Ltd. Vs. ACIT, W.P. (MD) No.2078 of 2020 & 1742 of 2020, dated 19.11.2024 (Madras) that the impugned statutory provision would come into effect on the transaction done on or after 01.04.2017 only. The assessee is accordingly directed to be assessed under the normal provision as per law. Necessary computation shall follow as per law. 7. This assessee’s appeal is partly allowed. Order pronounced in the open court on 21st January, 2025 Sd/- (SATBEER SINGH GODARA) JUDICIAL MEMBER Dated: 21st January, 2025. RK/- Copy forwarded to: 1. Appellant ITA No.4177/Del/2024 4 | P a g e 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi "