NEMI CHAND,AGRA V. ITO-2(1)(3), AGRA

MA 6/AGR/2025

AI Insights

The case revolves around a miscellaneous application filed by Nemi Chand against the order of the Tribunal in ITA No.229/AGR/2025, which pertained to the Assessment Year 2012-13. The primary issue was the addition of a cash deposit of Rs.24,09,800 to the income of the assessee, which was initially added under section 144 of the Income-tax Act, 1961 due to non-response from the assessee. The Tribunal had earlier estimated the income from this deposit as business income at 8%. However, the assessee contended that this amount was part of the declared business turnover of Rs.20,11,500 and already included in the income declared under section 44AD at 8.05%. The Tribunal, upon re-examination, agreed with the assessee's position and modified the earlier order to exclude the turnover already declared from the cash deposits considered for income estimation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 793357 (ITAT-AGRA)
• Duration Of Justice: 3 month(s) 17 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 26-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 09-06-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIL KUMAR
• Assessee Lawyers: S.C. JAIN
• Keywords: Business income
• Section: 144; 44AD

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH ‘DB’ : AGRA. BEFORE SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER and SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER MA No.6/AGR/2025 (in ITA No.229/AGR/2024) (Assessment Year: 2012-13) Nemi Chand, vs. ITO 2(1)(3), (rep. by Smt. Bharti Gupta), Agra. Gopal Pura, Shamsabad – 283 125 (Uttar Pradesh). (PAN : AJNPN1996N) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri S.C. Jain, CA REVENUE BY : Shri Anil Kumar, Sr. DR Date of Hearing : 22.08.2025 Date of Order : 26.09.2025 O R D E R PER S. RIFAUR RAHMAN, AM : 1. This misc. application is filed by the Applicant/Assessee against the order of the Tribunal in ITA No.229/AGR/2025 dated 28.03.2025 for Assessment Year 2012-13 for rectifying the mistakes apparent on record. 2. Ld. AR of the assessee submitted that the assessee is a registered fertilizer trader and during the year under consideration, the AO found that there was cash deposit of Rs.24,09,800/- made by the assessee. Since there was no response from the assessee, the same was added to the income of the assessee u/s 144 of the Income-tax Act, 1961 (for short ‘the Act’) Printed from counselvise.com 2 MA No.6/AGR/2025 resulting the income of the assessee of Rs.25,73,200/-. Ld. AR submitted that ITAT, considering the detailed facts on record, proceeded to determine the income of the assessee on the basis of estimation considering the cash deposit as business income @ 8% substituted the original addition. He brought to our notice findings of the ITAT at para 4 of the order and submitted that ITAT no doubt estimated the income of the assessee at 8% of the cash deposit during the year, however he submitted that assessee has admitted the turnover of Rs.20,11,500/- and declared the income u/s 44AD of the Act @ 8.05%. He submitted that the cash deposit is part of the business transaction and assessee has already declared the turnover of Rs.20,11,500/-, therefore, estimating the income on the cash deposit @ 8% amounts to double addition. He prayed that there is a mistake apparent on record and prayed that suitable rectification may be made or the relevant order may be recalled. 3. On the other hand, ld. DR of the Revenue supported the findings of the ITAT and submitted that the income was rightly estimated @ 8% and there is no mistake apparent on record. 4. Considered the rival submissions and material placed on record. We observe that the AO has noticed that assessee has made cash deposit of Rs.24,09,800/- and since assessee has not been able to explain the cash deposit, he proceeded to add the above cash deposit in the income of the Printed from counselvise.com 3 MA No.6/AGR/2025 assessee. The coordinate Bench considered the facts on record and treated the above cash deposit as business transactions and directed to estimate the income @ 8%. After considering the facts on record, we observe that assessee has already declared Rs.20,11,500/- under section 44AD of the Act and declared the income @ 8.05%. Since the transaction of cash deposit is part of the business transaction, assessee has already declared turnover of Rs.20,11,500/- in its return of income. In our considered view, the cash deposit is also part of the same business transaction to the extent of turnover already declared by the assessee should be given credit. Therefore, we modify the directions given by the Bench vide order dated 28.03.2025 and accordingly we direct the AO to estimate the income of the assessee @ 8% at Rs.3,98,300/- (Rs.24,09,800/- - Rs.20,11,500/-). With the modified direction, we allow the misc. application filed by the assessee. 5. In the result, the misc. application filed by the assessee is allowed as above. Order pronounced in the open court on this 26 day of September, 2025. Sd/- Sd/- (SUNIL KUMAR SINGH) (S.RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 26.09.2025 TS Printed from counselvise.com 4 MA No.6/AGR/2025 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals). 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "