M/s. Yuvva Marketing , Bengaluru V. Income Tax Officer, Ward-3(2)(2), Bengaluru

ITA 1057/BANG/2024

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 0408 (ITAT-BANGALORE)
• Duration Of Justice: 2 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-08-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 31-07-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 23-05-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NEHA SAHAY
• Assessee Lawyers: B S N PRASAD
• Section: 68; 142(1); 143(2); 69A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, BANGALORE BEFORE SMT. BEENA PILLAI, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ITA No.1057/Bang/2024 Assessment Years : 2017-18 M/s Yuvaa Marketing, No. 999/30, I Main, IV Cross, Vijayanagar, Bengaluru- 560 040. PAN – AABFY 5915 F Vs. The Income Tax Officer, Ward-3(2)(2), Bengaluru. APPELLANT RESPONDENT Assessee by : Shri BSN Prasad, Advocate Revenue by : Ms. Neha Sahay, JCIT (DR) Date of hearing : 01.08.2024 Date of Pronouncement : 07.08.2024 O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER : This is an appeal filed by the assessee against the order passed by the NFAC, Delhi dated 27/03/2024 vide DIN No. ITBA/NFAC/S/250/ 2023-24/1063448634(1) for the assessment year 2017-18. 2. The assessee before us has raised as many as 10 grounds of appeal but the core dispute involved in all the grounds of appeal is that the ld. CIT(A) erred in confirming the order of the AO by treating the sum of Rs. 85,68,700/- as unexplained money u/s 68 of the Act. 3. The AO during the assessment proceedings found that there is a cash deposit in the bank account of the assessee amounting to Rs. ITA No.1057/Bang/2024 Page 2 of 4 . 85,62,700/- only, the source of which was not explained. Therefore, the AO treated the same as unexplained money of the assessee u/s 69A of the Act, which was subsequently confirmed by the ld. CIT(A). 4. Being aggrieved by the order of the ld. CIT(A), the assessee in appeal before us. 5. The ld. AR before us filed a paper book running from pages 1 to 190 and contended that the assessee vide letter dated 20/12/2018 has furnished the necessary details, explaining the source of cash deposits in the bank immediately after receiving the notice issued u/s 143(2) of the Act dated 28/08/2018 without waiting for the notice u/s 142(1) of the Act, which was issued dated 14/10/2019. As per the ld. AR, the details furnished by the assessee justify the source of cash deposit, which have not been considered by none of the authorities below. According to the ld. AR, the amount of cash deposit represents the cash sales, which has been duly accounted in the books of accounts. Therefore, no addition u/s 69A of the Act in the given facts and circumstances is warranted. 6. On the other hand, the ld. DR fairly admitted that the details were filed by the assessee in support of cash deposits but the same has not been considered. Therefore, the ld. DR prayed before us to restore the issue to the file of the AO for fresh adjudication as per the provisions of law. 7. We have heard the rival contentions of both the parties and perused the materials available on record. On perusal of the letter written by the assessee to the ITO, Ward-3(2), Bengaluru dated 20/12/2018, it contains the following information: ITA No.1057/Bang/2024 Page 3 of 4 . 7.1 However, on perusal of the order of the authorities below, we find that details stated above have not been verified by the revenue. Therefore, in the interest of justice and fair play, we are inclined to set ITA No.1057/Bang/2024 Page 4 of 4 . aside the issue to the file of the AO for necessary verification of the details available on record and fresh adjudication as per the provisions of law. Hence, the ground of appeal of the assessee is hereby allowed for statistical purposes. 8. In the result, the appeal of the assessee is hereby allowed for statistical purposes. Order pronounced in court on 7 th day of August, 2024 Sd/- Sd/- (BEENA PILLAI) (WASEEM AHMED) Judicial Member Accountant Member Bangalore Dated, 7 th August, 2024 / vms / Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR, ITAT, Bangalore. 6. Guard file By order Asst. Registrar, ITAT, Bangalore