NEMICHAND,AGRA V. INCOME TAX OFFICER WARD 2(1)(3), AGRA

ITA 229/AGR/2024

AI Insights

The case involves appeals by Nemi Chand against the orders of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for the Assessment Years 2011-12 and 2012-13. The primary issue was the addition of cash deposits of Rs.12.08 Lacs and Rs.24.09 Lacs to the assessee's income for the respective years, which were initially added by the Assessing Officer under sections 144 and 147 of the Income Tax Act. The assessee argued that these deposits were from legitimate agricultural and business activities, which was not accepted by the CIT(A) due to lack of documentary evidence. The Tribunal, however, acknowledged the assessee's business activities and directed a re-computation of income, estimating a business income of 8% on the deposits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 37396 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SHAILENDER SHRIVASTAVA LD.
• Assessee Lawyers: S.C. JAIN LD
• Keywords: Business income
• Section: 147; 144

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AGRA BEFORE HON’BLE SHRI SATBEER SINGH GODARA, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपील सं. / ITA No.228/Agr/2024 (िनधाŊरण वषŊ / Assessment Year: 2011-12) & 2. आयकरअपील सं. / ITA No.229/Agr/2024 (िनधाŊरण वषŊ / Assessment Year: 2012-13) Nemi Chand (rep. by Smt. Bharti Gupta) Gopal Pura, Shamsabad UP 283125 बनाम/ Vs. ITO-2(1)(3) Agra ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AJNPN-1996-N (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Shri S.C. Jain (Advocate) – Ld. AR ŮȑथŎकीओरसे/Respondent by : Shri Shailender Shrivastava – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 21-02-2025 घोषणाकीतारीख /Date of Pronouncement : 28-03-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeals by assessee for Assessment Years (AY) 2011- 12 & 2012-13 arises out of separate orders of learned first appellate authority. First we take up appeal for AY 2011-12 which arises out of an order passed by learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 05-04- 2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 144 r.w.s. 147 of the Act on 17-12- 2018. Having heard rival submissions, the appeal is disposed-off as under. The sole grievance of the assessee is confirmation of addition of cash deposit for Rs.12.08 Lacs. 2. During assessment proceedings, it transpired that the assessee deposited cash of Rs.12.08 Lacs in its bank accounts. In the absence of any reply as forthcoming from the assessee, Ld. AO added the same to the income of the assessee. 3. During appellate proceedings, it was submitted by the assessee that it derived income from agricultural activities and trading of fertilizers. It was stated that the assessee and his family members owned agricultural land and the assessee declared agricultural income of Rs.3.05 Lacs and also declared business income of Rs.1.52 Lacs from sale of fertilizers. The deposits were stated to be sourced out of these receipts. However, Ld. CIT(A) rejected the submissions for want of requisite documentary evidences. Aggrieved, the assessee is in further appeal before us. 4. Upon perusal of documents on record, it could be ascertained that the assessee held license from District Agricultural Officer since July, 2010 for sale and purchase of seeds. The substantial cash deposited in the bank account has apparently been utilized towards purchase of seeds / fertilizers. Under these circumstances, entire deposits could not be added to the income of the assessee. We estimate business income of 8% on cash deposit of Rs.12.08 Lacs and direct Ld. AO to re-compute the income of the assessee. 5. Facts in AY 2012-13 are quite similar. The Ld. AO made similar addition of Rs.24.09 Lacs which was confirmed by Ld. CIT(A) against which the assessee is in further appeal before us. Facts being pari- materia the same, we estimate business income of 8% against the same and direct Ld. AO to re-compute the income of the assessee. 6. Both the appeal stands partly allowed. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. Sd/- Sd/- (SATBEER SINGH GODARA) (MANOJ KUMAR AGGARWAL) Ɋाियक सद˟ /JUDICIAL MEMBER लेखा सद˟ /ACCOUNTANT MEMBER Dated: 28-03-2025 आदेश की Ůितिलिप अŤेिषत / Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT AGRA "