INCOME TAX OFFICER,WARD-1,NAGAPATTINAM, NAGAPATTINAM V. RAJENDRAN MANIKANDAN, VADAKUDI, ANNAVASAL

ITA 1130/CHNY/2024

AI Insights

The case involves an appeal by the revenue against the order of the Commissioner of Income Tax (Appeals), which had accepted the assessee's explanation regarding his business as a wholesale agent for milk products but deleted the addition of unexplained cash deposits. The Tribunal found that while the assessee was engaged in business and earned commissions, no business income had been estimated against the deposits. The Tribunal estimated the income at 8% on the cash deposits to resolve the matter.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472355 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2024
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 26-09-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 19-04-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R. ANITA LD.
• Assessee Lawyers: S. SRIDHAR LD
• Keywords: Business income

Judgement Text

" आयकर अपीलीय अिधकरण “सी” \u000eा यपीठ चे\u0013ई म\u0016। IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, CHENNAI मा ननीय \u0019ी एबी टी.वक\u001f, \u000eा ियक सद\" एवं माननीय \u0019ी मनोज क ुमार अ'वाल ,लेखा सद\" क े सम)। BEFORE HON’BLE SHRI ABY T. VARKEY, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ ITA No.1130/Chny/2024 (िनधा*रणवष* / Assessment Year: 2017-18) ITO Ward -1, Nagapattinam. बनाम / Vs. Shri Rajendran Manikandan 2/105 West Street, Vadakudi, Annavasal, Arangakudi, Nagapattinam - 609 302. \u0002थायीलेखासं./जीआइआरसं./TAN/GIR No.CXXPM-5154-P (अपीलाथ\u001c/Appellant) : (\u001f थ\u001c / Respondent) अपीलाथ\u001cकीओरसे/ Appellant by : Ms. R. Anita ( Addl.CIT) -Ld. Sr. DR \u001f थ\u001cकीओरसे/Respondent by : Shri S. Sridhar (Advocate) – Ld.AR सुनवाईकीतारीख/Date of Hearing : 26-09-2024 घोषणाकीतारीख /Date of Pronouncement : 09-10-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by revenue for Assessment Year (AY) 2017-18 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 21-02-2024 in the matter of an assessment framed by the Ld.AO u/s.144 on 31-10-2019. The sole grievance of the assessee is assessment of income at Rs.135.24 Lacs. It is evident that the assessment has been framed on best judgment basis. 2 2. The Ld. AR advanced arguments and pleaded for reasonable estimation of income. The same has been opposed by Ld. Sr. DR. Having heard rival submissions and upon perusal of case records, our adjudication would be as under. 3. The assessee deposited cash of Rs.133.79 Lacs in its bank accounts out of which Rs.23.22 Lacs was deposited during demonetization period. There was other credit of Rs.18.13 Lacs. The assessee was required to explain the sources thereof. However, the assessee did not furnish the details. Accordingly, entire cash of Rs.133.79 Lacs was added as unexplained money u/s 69A. On other credits, Ld. AO estimated income of 8% and framed the assessment. 4. During first appeal, the assessee submitted that it was acting as wholesale agent for Milk / Milk products and derived income by way of commission on sales. The cash deposits represent sale value of the products. The assessee furnished agreement with Hatsun Agro Products. Accepting the submissions of the assessee, the Ld. CIT(A) deleted the impugned addition against which the revenue is in further appeal before us. 5. We find that though it has been accepted by Ld. CIT(A) that the assessee carried on business of milk products and earned commission of sales, yet no business income has been estimated against the aforesaid deposits. It has been accepted that the assessee has entered into an agreement with Hatsun Agro Products, however, the commission on sale has not been brought to tax. Apparently, the assessee has not maintained any books of accounts. Considering the same and with a view to end litigation, we estimate the income of the assessee @8% on cash deposits of Rs.1,33,79.100/-. The same comes to Rs.10,70,328/-, 3 Adding the same to Rs.1,45,097/-, the assessed income would be Rs.12,15,425/-. The Ld. AO is directed to revise the demand as raised against the assessee. 6. The appeal stand partly allowed. Order pronounced on 9th October, 2024 Sd/- Sd/- (ABY T. VARKEY) (MANOJ KUMAR AGGARWAL) \u000eा ियक सद\" /JUDICIAL MEMBER लेखा सद\" / ACCOUNTANT MEMBER चे4ई Chennai; िदनांक Dated :09-10-2024 DS आदेशकीIितिलिपअ'ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u001c/Appellant 2. \u001f थ\u001c/Respondent 3. आयकरआयु=/CIT Madurai 4. िवभागीय\u001fितिनिध/DR 5. गाडBफाईल/GF "