TaxTMI 
TaxTMI 
TaxTMI 
2026 (2) TMI 160
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....uring F.Y.2013-14 relevant to Α.Υ.2014- 15. TDS-194D TDS-return-Insurance Commission (Section Rs. 41,234/-194D) TDS- 1941(b) Rent Received (TDS Form 26Q, Section Rs. 6,66,672/- 194I(b) AIR-001 Cash Deposit of Rs. 10,00,000/- or more in a Rs. 1,01,50,000/- saving bank account 2.2 In view of the above facts, the Assessing Officer had reasons to believe that income to the extent of Rs. 1,08,57,906/- had escaped assessment within the meaning of section 147 of the Act and, the case for A.Y. - 2015-16 was re-opened by issuing of notice u/s. 148 dated 30.03.2021 after recording of reasons for reopening obtaining prior approval of the PCIT, Faridabad on 28.03.2021. The assessee was required to furnish his return of income within 30 days from the receipt of notice issued u/s. 148 of the Act. 3. During assessment proceedings, the assessee submitted his reply on 29.12.2021 stated that " dear sir, due to my older accounts in bank closed, banks are taking so much time and not giving account therefor taking time. please give some more time I am collecting all detail". Further, the assessee submitted reply on 12.01.2021 and stated that "sir bank account copy I have ta....
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....nd in absence of any supporting evidences/confirmation the cash deposits deposited in the saving bank account maintained with Sarva Haryana Gramin Bank Account No.21013002735 was not verifiable. Accordingly, the amount of Rs. 1,01,50,000/- was treated as unexplained money u/s. 69A of the Act and added to the total income of the assessee and tax payable on this addition was computed as per the provisions of section 115BBE of the Act. 8. Aggrieved with the said order, the assessee filed an appeal before the Ld. CIT(A). The Ld. CIT(A) noted that the assessee's turnover was Rs. 1,94,67,899/- but no Audit Report was filed in time and also no return of income was filed by the assessee. The Ld. CIT(A) doubted the veracity of the Auditor certifying the loss to tune of Rs. 4,23,729/- on the aforesaid turnover in Audit Report dated 15.12.2024. The Ld. CIT(A) also did not accept the evidences filed before him on the ground that the same were not furnished before the AO and the assessee also failed to explain as to what prevented the assessee in producing it before the AO. The Ld. CIT(A) after considering the various submissions of the assessee and for the reasons as stated in para no. 5.8 ....
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.... them; 2. confirming addition of Rs. 38.93,580/- on ad hoc basis being 20% of the gross turnover of Rs. 1,94,67,899/-; The above actions being arbitrary, fallacious, unwarranted and illegal must be quashed with directions for appropriate relief." 10. During the course of hearing before us, the assessee filed a written submission and requested that the matter may be remitted to the file of the AO for fresh adjudication as per facts and law. The written submission filed by the assessee is reproduced as under: "Noticing qua an 'information' received that the Appellant in this case had not filed any return of income u/s. 139/1) of the Income Tax Act, 1961 (the Act); and further with a nature of the business activity of the Assessee being uncertainable in the absence of a return; and further with information available to it under Category NMS indicating that the Assessee had inter alia deposited cash of Rs. 1,01,50,000/- in the bank account, the AO thereafter recorded reasons to believe that income to the extent of Rs. 1.08.57.906/- had escaped assessment within the meaning of Sec. 147 of the Act, and after the recording of reasons for the satisfaction ....
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....ages. putrefaction and other wastages. Those aspects have been completely ignored. Still further, the Income Tax Appellate Tribunal, Agra Bench in ITA No. 342/Agr/2025 for the AY 2013-14 has taken net profit at around 0.5% as reasonable. The Assessee, therefore, pleads for a comprehensive view being taken on a holistic basis and for a drastic reduction in the GP rate. Further the income from LIC commission and rent would have to be assessed under the prescribed Sections of the Act. failing which the matter could be remitted back to the AO for a fresh appraisal as per facts and law and specific directions. Placed for the most favourable consideration." (emphasis supplied by us) 11. The Ld. Sr. DR supported the order of the Ld. CIT(A) but did not seriously object to the plea of the assessee for reasonable estimation of gross profit or in the alternative setting aside the matter to the file of the AO for fresh adjudication. 12. We have heard the rival contentions and perused the material available on record. No specific submissions were made in respect of Ground no. 1(i) challenging the initiation of proceedings u/s 147 of the Act. Further, in the given fact....