TaxTMI 
TaxTMI 
2024 (9) TMI 1512
X X X X Extracts X X X X
X X X X Extracts X X X X
....2014-15. 2. The Assessee has taken the following grounds of appeal:- "1.1 The order passed by u/s. 250 passed on 22.01,2024 by NFAC, Delhi (in short "NFAC") upholding the addition of Rs. 9,36,300/- towards the cash deposit in bank account with Nutan Nagarik Sahkari Bank Ltd. as unexplained money u/s 69A of the Act is wholly illegal, unlawful and against the principles of natural justice. 2.1 The ld. NFAC has grievously erred in law and or on facts in not appreciating that there could not be compliance to the notices claimed to be issued because the mail id pertain to her tax consultant who had not informed her about any such proceedings. Thus, there was a sufficient cause for failure to comply with the notices claimed t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....me. In response to the notices issued to the assessee, the assessee neither replied nor produced any document. The Ld. Assessing Officer observed that the assessee had entered huge financial transaction during the year under consideration as there were voluminous financial transactions (deposits) of Rs. 9,36,300/- in the bank account held by the assessee with Nutan Nagarik Sahakari Bank Ltd. resulting into substantial income generated by way of utilization of said funds. There were huge cash transactions in the bank account of the assessee, however the assessee had not filed return of income for the year under consideration. In view of the above, a show cause notice was issued by the Assessing Officer as to why the cash of Rs. 9,36,300/- de....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the consultant's email address instead of the assessee's personal address, the assessee was unaware of the proceedings and did not submit a reply on the e-proceeding portal. The case was subsequently decided without any postal notice being sent to the appellant's address, violating the basic conditions for service of notice. Additionally, due to COVID-19 pandemic the assessee was unable to comply with tax obligations. With regards to addition of unexplained cash deposits under Section 69A, amounting to Rs. 9,36,300, the assessee submitted that the cash deposited was used to pay vendors and suppliers. The assessee submitted bank statements in support of it's claim. The assessee argued that even if a higher profit rate of 20% was ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ny meaningful and worthwhile submissions/documentations even during the instant appellate proceedings, to counter effectively the position adopted by the AO on the concerned issues and reduced in writing in the assessment order. It is trite that an appellate authority is essentially called upon to balance the two sides of an argument presented before him as held in Nirmal Singh and Others of the Hon'ble Punjab and Haryana High Court [Cr No. 3791 of 2013 (O&M) dated 01.05.2014]. The addition of Rs. 9,36,300/- u/s 69A of the Income Tax Act, 1961 made by the AO is sustained. As a result, the ground No. 1&2 of the appeal are dismissed. 6. In the result, the appeal filed by the appellant is treated as dismissed." 6. Before us, th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....essee drew our attention to pages 23-24 of the paper book and submitted that the assessee had also furnished returns of income filed by the assessee for assessment year 2012-13 and assessment year 2013-14 and from the same it is apparent that the assessee is a small retailer/dealer in garments and the assessee has been earning minor income for the impugned years under consideration. 7. Accordingly, looking into the instant facts, it is a fit case where the additions made in the hands of the assessee are liable to be deleted. 8. In response, DR placed reliance on the observations made by the assessing officer and Ld. CIT(Appeals) in their respective orders. 9. We have heard the rival contentions and perused the material on record. O....