SEEMA RANI BANSAL,RAIKOT V. INCOME TAX OFFICER, WARD - 1, RAIKOT

ITA 1244/CHANDI/2024

AI Insights

The case involves Smt. Seema Rani Bansal, who appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which had confirmed an assessment made by the Assessing Officer under sections 144 and 147 of the Income Tax Act. The assessment was reopened to verify the source of a cash deposit of Rs. 31.70 Lacs. The Assessing Officer added this amount as unexplained money to the assessee's declared income of Rs. 5.66 Lacs for the Assessment Year 2017-18. The CIT(A) did not admit the appeal due to a delay of 201 days, which the assessee attributed to adverse medical conditions. The Tribunal, considering the circumstances, proceeded to adjudicate the appeal on merits, ultimately reducing the addition made by the Assessing Officer.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 361166 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-05-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RANJIT KAUR LD.
• Assessee Lawyers: RAKESH MARWAHA LD
• Keywords: Condonation of delay
• Section: 144

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHANDIGARH BEFORE HON’BLE SHRI LALIET KUMAR, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं. / ITA No.1244/CHANDI/2024 (िनधाŊरणवषŊ / Assessment Year: 2017-18) Smt. Seema Rani Bansal C/o M/s Ambari Ram Bal Krishan Grain Market Raekot – 141109 बनाम/ Vs. ITO Ward-1 Ludhiana ̾थायीलेखासं./जीआइआरसं./PAN/GIR No.AEGPB-7906-B (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Shri Rakesh Marwaha (CA) – Ld. AR ŮȑथŎकीओरसे/Respondent by : Dr Ranjit Kaur (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 21-05-2025 घोषणाकीतारीख /Date of Pronouncement : 21-05-2025 आदेश / O R D E R PER LALIET KUMAR, J.M. 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 30-10-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 144 r.w.s. 147 of the Act on 21-03-2022. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under. 2 2. To verify source of cash deposit of Rs.31.70 Lacs, the case of the assessee was reopened for this year. Since the assessee failed to make any submissions during assessment proceedings, Ld. AO added the same as unexplained money to the returned income of Rs.5.66 Lacs. The Ld. CIT(A) did not admit the appeal for want of condonation of delay of 201 days. Aggrieved, the assessee is in further appeal before us. The Ld. AR has stated that the assessee could not make representation before lower authorities due to adverse medical conditions. The Ld. AR also stated that the deposits stood fully explained by the financial statements of the assessee. The Ld. Sr. DR expressed doubts on business activities of the assessee. 3. We are of the opinion that considering adverse medical conditions being faced by the assessee, the appeal ought to have been admitted by Ld. CIT(A). Nevertheless, we proceed with adjudication of appeal on merits. Upon perusal of assessee’s computation of income and financial statements, it could be seen that the assessee has earned commission income and declared net profit of Rs.7.02 Lacs which has been offered to tax. The assessee has reflected all the bank accounts in her financial statements. The factum of carrying out of business has been accepted by Ld. AO since the returned income has been accepted. Apparently, the bank account is a disclosed bank account which has trading receipts of the assessee. On these facts, entire deposits could not be held to be unexplained money. To plug any possible leakage of revenue, we estimate lump sum addition of Rs.2 3 Lacs in the hands of the assessee and delete the remaining addition. The Ld. AO is directed to re-compute the income of the assessee. 4. The appeal stand partly allowed. Order pronounced on 21-05-2025. Sd/- Sd/-- (MANOJ KUMAR AGGARWAL) (LALIET KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 21-05-2025. 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 CHANDIGARH "