9911796707
TMI Blog2025 (1) TMI 1116X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 1961 (hereinafter referred to as 'the Act') 01.10.2019. The assessee has raised following grounds of appeal: "1. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in making addition Rs. 72,81,670/- u/s 69 of the Act on account of treating all the credit found in bank as unexplained money. 2. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has erred in confirming the action of the Assessing Officer erred in charging special tax rate 60 percent u/s 11BBE of the Act. 3. On the facts and in the circum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... low: Name of the Bank Bank a/c No. Name of the a/c holder Cash deposits made during demonetization period (i.e. from 09.11.2016 to 30.12.2016) Cash deposits during the FY (excluding demonetization period) Other credits (other than cash) Total credit (cash + credit entries) Corporation Bank 01/003471 Jayeshbhai B Chovatiya 11,95,620/- 60,000/- 6,321/- 12,61,941/- Vacahha Co-Op. Bank 01310120021625 Jayeshbhai B Chovatiya 2,50,000/- 26,500/- 2,51,243/- 5,27,743/- HDFC Bank 50100020836112 Jayeshbhai B Chovatiya 3,60,000/- 2,68,500/- 48,63,490/- 54,91,990/- Total 18,05,620/- 3,55,000/- 51,15,812/- 72,81,674/- 3. The Assessing Officer (AO) noted that assessee was given various notices to make comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tails to substantiate various grounds of appeal. First appeal was filed on 23.10.2019. The assessee furnished response on 26.07.2021 as well as on 07.03.2024. The assessee submitted that he is an individual and engaged in the business of PVC pipeline and other various items used in bore well. The assessee was not well aware regarding pre-assessment proceedings. So no compliance was mad. In fact, no physical notice was served upon the assessee. The Assessing Officer made huge addition under section 69/69A of the Act. No return was filed by assessee as he has no taxable income during relevant financial year 2016-17. A computation of total income was furnished. The Assessing Officer while making best judgment assessment has simply added entire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dered by Assessing Officer while making assessment. The Ld. AR of the assessee submitted that Assessing Officer made huge addition of Rs. 72,81,674/- without taking into account the fact that assessee has availed a home loan of Rs. 44,01,180/-, if such amount is reduced from whole of the addition, the addition will reduce to Rs. 28,80,494/-, if deduction under section 80TTA of the Act is allowed at Rs. 2,042/-, the addition will further reduce to Rs. 28,78,452/-. Further, there is mistake on figure of Rs. 19,870/- by considering as correct amount will reduce to Rs. 28,58,582/-. The assessee was having cash-in-hand of Rs. 9,92,080/- which is reflected in the return of income for assessment year 2016-17 filed on 14.09.2016, copy of which plac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n is to be sustained is only Rs. 1,49,320/- which is below taxable income. Thus, the assessee has not rightly filed his return of income. The Ld. AR of the assessee submits that entire addition is liable to be deleted. 7. On the other hand, Ld. Senior Departmental Representative (Ld. CIT-DR) for the Revenue after going through the submission of Ld. AR of the assessee and supported the order of lower authorities. The Ld. Sr-DR for the Revenue submits that allegedly furnishing by assessee is not considered by Ld. CIT(A), therefore, the matter may be restored back to the file of lower authorities to consider the matter afresh. 8. In short rejoinder, Ld. AR of the assessee submits that in response to notice under section 250, the assessee fur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... educe to Rs. 28,80,494/-. Further, if the assessee is allowed deduction under section 80TTA of Rs. 2,042/-, the addition will reduce to Rs. 28,78,452/-. Further, there is mistake on figure of Rs. 19,870/- by considering as correct amount will reduce to Rs. 28,58,582/-. From the copy of ITR for AY 2016-17, we find that the assessee was having cash-in-hand of Rs. 9,92,080/- the return of income for AY 2016-17 filed on 14.09.2016, copy of which placed on record pages 39 to 41 of the paper book. Thus, if such credit is allowed, the additions is left only to Rs. 18,66,502/-. We find that the assessee was engaged in business income is estimated @ 10% the taxable income would be Rs. 1,86,650/-, which we rounded off to Rs. 2.00 lakhs. Thus, the add ..... X X X X Extracts X X X X X X X X Extracts X X X X
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