PUSPA DEVI, ,RUDRAPUR V. ITO, SRINAGAR

ITA 236/DDN/2024

AI Insights

The case involves Puspa Devi, a senior citizen and proprietor of M/s Sajwan Cold Drinks, who appealed against the order of the National Faceless Appeal Centre (NFAC) which upheld the assessment order passed by the Income Tax Officer (ITO), Ward-1(4), Srinagar. The assessment was made under section 144 of the Income-tax Act due to non-filing of the income tax return by the assessee for the assessment year 2017-18. The ITO noted substantial cash deposits in the assessee's bank account and subsequent remittances to PepsiCo and Varun Beverages, indicating business activity. The CIT(A) and the Tribunal dismissed the appeal, finding no merit in the assessee's arguments, which included her age, health issues, and personal tragedies that allegedly affected her ability to comply with statutory requirements.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 470149 (ITAT-DEHRADUN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-04-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A. S. RANA
• Section: 144; 142(1); 69A

Judgement Text

"Page | 1 THE INCOME TAX APPELLATE TRIBUNAL DEHRADUN BENCH, NEW DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER (Through Video Conferencing) ITA No. 236/DDN/2024 (Assessment Year: 2017-18) Puspa Devi (though legal representative), M/s. Sajwan Cold Drinks, Guptkashi, Rudraprayag, Uttarakhand- 246 149 Vs. ITO, Ward-1(4)(4), Srinagar (Appellant) (Respondent) PAN: AGPZD5011F Assessee by : None Revenue by: Shri A. S. Rana, Sr. DR Date of Hearing 17/03/2025 Date of pronouncement 02/04/2025 O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in ITA No. 236/DDN/2024 for AY 2017-18, arises out of the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. NFAC’, in short] in appeal No. ITBA/NFAC/S/250/2024-25/1070048400(1) dated 30.10.2024 against the order of assessment passed u/s 144 of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 26.11.2019 by the Assessing Officer, ITO, War-1(4), Srinagar (hereinafter referred to as ‘ld. AO’). 2. None appeared on behalf of the assessee despite issuance of notice. Hence we proceed to dispose of this appeal on hearing the Learned DR and based on materials available on record. 3. We find that the assessee had not filed her return of income for the assessment year 2017-18 voluntarily. Accordingly, notice under section 142(1) of the Act stood issued to the assessee on 9-2-2018 calling for return of income, ITA No. 236/DDN/2024 Puspa Devi Page | 2 which was not complied with by the assessee. Hence, the Learned AO proceeded to complete the assessment under section 144 of the Act on 26-11-2019. The Learned AO observed that assessee had made substantial cash deposits in her bank account maintained with State Bank of India throughout the year which comprise of pre-demonetization period, during demonetization period and post demonetization period. The Learned AO also observed that assessee immediately on deposit of cash in her bank account had remitted the amounts to PepsiCo and Varun Beverages Limited. This goes to prove that assessee company was engaged in some business activity also. Further, the assessee had filed VAT returns for all the four quarters which was also examined by the Learned AO on obtaining the information from Commercial Tax Department for the relevant year. From the turnover declared in the VAT returns, the Learned AO estimated the business profit of the assessee at the rate of 8 percent and made an addition of Rs 6,63,313/-. Further, the Learned AO on perusal of the bank account observed that assessee had earned bank interest of Rs 11,455/- which was also sought to be added. Further, the Learned AO found that the assessee could not explain the cash deposits made in the sum of Rs 17 lakhs in her bank account which was treated as unexplained money under section 69A of the Act and the same was also added. With these three additions, the total income of the assessee was determined at Rs 23,74,770/-. 4. Before the Learned CIT(A), it was submitted that assessee is a 61 year old lady senior citizen engaged in the business of wholesale trading of beverages and other fast food items under the proprietorship concern M/s Sajwan Cold Drinks situated at Guptakashi, Rudraparayag, Uttarakhand -246439. It was also submitted before the Learned CIT(A) that the assessee being a old senior citizen lady and suffering from number of age-related ailments and that the business of the assessee was managed by her eldest son Shri Deepak Sajwan whose untimely death by way of suicide at the young age of 27 years on 7-10-2015 had left the assessee with severe depression thereby not able to concentrate on either the business and the statutory formalities. Further subsequent to the death of the son, the assessee and her family were accused of domestic violence by their ITA No. 236/DDN/2024 Puspa Devi Page | 3 widowed daughter-in-law Smt Sangeeta Sajwan who also filed a case against them. The assessee enclosed the copy of FIR filed by her daughter-in-law before the Learned CIT(A). All these factors collectively contributed for not complying with the statutory formalities of filing the income tax return by the assessee. The assessee filed detailed written submissions before the Learned CIT(A) which were reproduced from pages 6 to 16 of the order of Learned CIT(A). The Learned CIT(A) also sought a remand report from the Learned AO . The remand report was submitted by the Learned AO on 1-9-2023. The Learned CIT(A) on considering the written submissions and the remand report of the Learned AO upheld all the additions and dismissed the appeal of the assessee. The findings recorded by the Learned CIT(A) were not controverted by the assessee before us by furnishing cogent documentary evidences. Hence, we do not find any infirmity in the order of the Learned CIT(A) confirming the additions made by the Learned AO. Accordingly, the grounds raised by the assessee are hereby dismissed. 5. In the result, the appeal of the assessee is dismissed. Order pronounced in the open court on 02/04/2025. -Sd/- -Sd/- (SATBEER SINGH GODARA) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 02/04/2025 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi "