JHADESWAR MANDAL,BHADRAK V. THE INCOME TAX OFFICER, BHADRAK WARD, BHADRAK, BHADRAK

ITA 753/CTK/2025

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The case involves Jhadeswar Mandal, a fruit trader, who appealed against the order of the CIT(A), National Faceless Appeal Centre, Delhi, which dismissed his appeal due to a delay in filing. The primary issues in the appeal were the estimation of income by the Assessing Officer at 8% of turnover and the addition of Rs. 3,00,000 as demonetized currency. The Tribunal found that the CIT(A) had not considered the appeal on merits due to the delay and thus condoned the delay. It was noted that the assessee's profit margin in previous years was between 1.4% to 1.54%, and considering the nature of the business, a profit estimation of 4% was deemed reasonable. The Tribunal also found that the addition of Rs. 3,00,000 as demonetized currency was not justified and thus deleted this addition.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 837394 (ITAT-CUTTACK)
• Duration Of Justice: 1 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2026
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Appeal Filed On: 19-12-2025
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VIJAYA SINGH
• Assessee Lawyers: P.K.MISHRA; HIMANSU JENA

Judgement Text

" आयकर अपीलȣय अͬधकरण, कटक Ûयायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK Įी जाज[ माथन, ÛयाǓयक सदèय एवं Įी मधुसूदन सावͫडआ, लेखा सदèय क े सम¢ । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI MADHUSUDAN SAWDIA , ACCOUNTANT MEMBER आयकर अपील सं/ITA No.753/CTK/2025 (Ǔनधा[रण वष[ / Assessment Year : 2017-2018) Jhadeswar Mandal C/O:- Mandal, Fruits, At/P.O/P.S:- Kachery Bazar, Dist:- Bhadrak, 756100, Odisha Vs ITO, Bhadrak Ward, Bhadrak PAN No. : BGUPM 0558 C (अपीलाथȸ /Appellant) .. (Ĥ×यथȸ / Respondent) Ǔनधा[ǐरती कȧ ओर से /Assessee by : Shri P.K.Mishra and Shri Himansu Jena, Advs राजèव कȧ ओर से /Revenue by : Shri Vijaya Singh, Sr DR सुनवाई कȧ तारȣख / Date of Hearing : 18/02/2026 घोषणा कȧ तारȣख/Date of Pronouncement : 18/02/2026 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order passed by ld.CIT(A), National Faceless Appeal Centre (NFAC), Delhi dated 28/02/2025 in Appeal No. NFAC/2016-17/10267337 for the assessment year 2017- 2018. 2. Shri P.K.Mishra and Shri Himansu Jena, ld ARs appeared for the assessee and Shri Vijaya Singh, ld Sr DR appeared for the revenue. 3. The appeal is time barred by 234 days. The assessee has filed condonation petition alongwith affidavit supported by medical certificates Printed from counselvise.com ITA No.753/CTK/2025 2 from the doctor in support of the delay in filing the appeal. The above submission of the assessee has not found to be false. Hence, we condone the delay of 234 days in filing the appeal and admit for adjudication. 4. It was submitted by ld AR that the assessee is a trader of fruits. It was the submission that in the course of assessment, the Assessing Officer estimated the income of the assessee. The Assessing Officer had accepted the turnover of the assessee at Rs.6,50,84,842/- and estimated the income at 8%. It was the submission that the assessee normally earned the income of 1.5 to 2%. It was the submission that the Assessing Officer further made an addition of Rs.3,00,000/- representing the demonetization currency received against the sale proceeds and deposited in the bank account. It was the submission that on appeal, ld CIT(A) dismissed the appeal of the assessee on account of delay in filing the appeal before him. It was the submission that the ld CIT(A) has dismissed the appeal of the assessee without considering the issue on merits on account of delay of 119 days in filing of appeal. It was prayer that the delay in filing the appeal before the ld CIT(A) may be condoned and income of the assessee restored to the returned income. 5. In reply, ld Sr DR vehemently relied on the order of the lower authorities and prayed to upheld the same. Printed from counselvise.com ITA No.753/CTK/2025 3 6. We have considered the rival submissions. It is noticed that the ld CIT (A) has dismissed the appeal of the assessee without condoning the delay considering the submission of the assessee as not plausible and did not consider the facts on merits. Considering the submission of the assessee as pointed out in Form No.35, we condone the delay in filing the appeal before the ld CIT(A). 7. A perusal of the facts in the present case clearly shows that it is an accepted fact that the assessee is a dealer of fruits and no variation in the turnover has been found by the Assessing Officer. The Assessing Officer has estimated the profit at 8% of its turnover. The assessee is a dealer in fruits and duly earned such income. Earlier years, the details which have been submitted before the Assessing Officer, also shows that the assessee is earning profit margin at 1.4 to 1.54%. This being so, in the interest of justice, the Assessing Officer is directed to estimate the profit at 4% of the turnover. In regard to addition of Rs.3 lakhs being demonitised currency deposited in the bank account, it is noticed that the assessee is a dealer of perishable commodity and once the product is sold, the assessee is not in a position to determine the nature of the currency that he receives. Admittedly, the assessee has shown Rs.3 lakhs of demonitisation currency on a turnover of Rs.6,50,84,842/-. Compared to the total turnover, this is a very small amount. Even the Government has issued circular that upto Rs.2.50 lakhs cash deposited in the bank as demonitised currency would Printed from counselvise.com ITA No.753/CTK/2025 4 not be questioned. Therefore, the addition of Rs.3,00,000/- being on account of the demonitised currency stands deleted. With these directions, the issues in this appeal are restored to the file of the AO. 8. In the result, appeal of the assessee stands partly allowed. Order dictated and pronounced in the open court on 18/02/2026. Sd/- (मधुसूदन सावͫडआ) (MADHUSUDAN SAWDIA) Sd/- (जाज[ माथन) (GEORGE MATHAN) लेखा सदèय/ ACCOUNTANT MEMBER ÛयाǓयक सदèय / JUDICIAL MEMBER Ǒदनांक Dated 18/02/2026 Shri P.K.Mishra, Sr PS आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy of the Order forwarded to : आदेशानुसार/ BY ORDER, (Assistant Registrar) आयकर अपीलȣय अͬधकरण, कटक/ITAT, Cuttack 1. अपीलाथȸ / The Appellant- Jhadeswar Mandal C/O:- Mandal, Fruits, At/P.O/P.S:- Kachery Bazar, Dist:- Bhadrak, 756100, Odisha 2. Ĥ×यथȸ / The Respondent- ITO, Bhadrak Ward, Bhadrak 3. आयकर आयुÈत(अपील) / The CIT(A), 4. आयकर आयुÈत / CIT 5. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय अͬधकरण, कटक / DR, ITAT, Cuttack 6. गाड[ फाईल / Guard file. स×याͪपत ĤǓत //True Copy// Printed from counselvise.com "