PUNIT KUMAR AGGARWAL,DELHI V. ITO,WARD-36(2), DELHI

ITA 2983/DEL/2023

AI Insights

The case involves an appeal by Punit Kumar Aggarwal against the order of the CIT(A)/NFAC, which partly upheld the Assessing Officer's decision to add the entire amount of cash deposits of Rs.31,32,200/- to the assessee's income. The primary contention was whether this amount, already included in the sales declared under section 44AD, constituted a double addition when taxed again under section 69A. The Tribunal found that the CIT(A)/NFAC had correctly taxed the unexplained cash deposits under section 69A but modified the extent of the assessment to align with the profit percentage declared on the gross turnover, which included the disputed amount.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 31543 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANJAY KUMAR
• Assessee Lawyers: ANKIT KUMAR; LALIT MOHAN
• Keywords: Business income
• Section: 143(3); 44AD; 69A; 44AB

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘SMC’, NEW DELHI Before Sh. Satbeer Singh Godara, Judicial Member ITA No. 2983/Del/2023 : Asstt. Year: 2017-18 Punit Kumar Aggarwal, H/32, Pocket-44, Sectgor-3, Rohini, Delhi-110085 Vs Income Tax Officer, Ward-36(2), New Delhi (APPELLANT) (RESPONDENT) PAN No. BMPPA5465F Assessee by : Sh. Ankit Kumar, Adv. & Sh. Lalit Mohan, CA Revenue by : Sh. Sanjay Kumar, Sr. DR Date of Hearing: 07.01.2025 Date of Pronouncement: 07.01.2025 ORDER This assessee’s appeal for Assessment Year 2012-13, arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2023-24/1056667256(1) dated 29.09.2023, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “the Act”). 2. Heard both the parties at length. Case file perused. 3. Learned counsel at the outset submits during the course of hearing that his limited grievance canvassed in the instant appeal rather emanates from the CIT(A)/NFAC’s detailed discussion partly upholding the Assessing Officer’s action adding ITA No. 2983/Del/2023 Punit Kumar Aggarwal 2 his entire cash deposits of Rs.31,32,200/- to that @ 6.52%; reading as under: “(ii) The claim of the appellant that the addition u/s 69A of the IT Act constitutes a double addition in so far as the sales are already offered to tax and\" hence on addition the same amount is doubly considered. In this regard, it is seen that the 'appellant has disclosed the sales in the return of income filed u/s 44AD of the IT Act. Therefore, what has been offered for taxation is the profit percentage on the sales disclosed. However, as per the assessment order what is found to be taxable is the amount of unexplained cash deposits i.e. Rs 31,32,200/- since the appellant failed to demonstrate that these actually constituted sales of the items traded in made to existing persons. Therefore, this amount is not liable to taxed u/s 44AB of the IT Act but is liable to be taxed u/s 69A of the IT Act as held. Therefore, after having taxed it u/s 69A of the IT Act, the Profit offered by the appellant u/s 44AD of the IT Act is required to be reduced. The appellant has offered profits @ 6.52 % on the gross turnover of Rs 1,16,19,100/- which includes the amount added of Rs 31,32,200/-. In view of the earlier discussion, 6.52% of Rs 31,32,200/- i.e. Rs 2,04,219/- is the amount which is being taxed doubly. Hence, the amount of Rs 2,04,219/- is reduced from the amount of Rs 7,57,241/- being regular business income of the appellant. The ground of appeal raised on the issue of double taxation is decided as above.” 4. It is thus clear that the CIT(A)/NFAC; instead of assessing the entire cash deposits amount, has granted limited relief to the assessee only to the extent of gross receipt @ 6.52% declared u/s 44AD of the Act. That being the case, his impugned lower appellate directions are modified to the limited extent that the assessee’s impugned cash deposits of Rs.31,32,200/- shall be assessed in entirely only to the extent of 6.52% and ITA No. 2983/Del/2023 Punit Kumar Aggarwal 3 the necessary computation to this effect will be finalized in very terms. Ordered accordingly. 6. This assessee’s appeal is partly allowed. Order Pronounced in the Open Court on 07/01/2025. Sd/- (Satbeer Singh Godara) Judicial Member Dated: 07/01/2025 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR "