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TaxTMI 
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TaxTMI 
2026 (5) TMI 1535
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.... revenue does not have any objection if the bench condones delay and accordingly left it to the wisdom of bench. We have considered the explanation advanced by assessee and in absence of any contrary fact or material on record, the assessee is found to have a "sufficient cause" for delay in filing present appeal. We find that section 253(5) of the Act empowers the ITAT to admit an appeal after expiry of prescribed time, if there is a "sufficient cause" for not presenting appeal within prescribed time. It is also a settled position by Hon'ble Supreme Court in Collector, Land Acquisition Vs Mst. Katiji and others 1987 AIR 1353, 1987 2 SCC 387 that whenever substantial justice and technical considerations are opposed to each other, the cause of substantial justice must be preferred by adopting a justice-oriented approach. Thus, taking into account the facts of case, the provision of section 253(5) and the decision of Hon'ble Supreme Court, we take a judicious view, condone delay, admit appeal and proceed with hearing. 4. The background facts leading to present appeal are as under: (i) The assessee-individual is a small trader engaged in the business of oil cake (khali) at ....
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....2;ो बैंक खाते में जमा कराई गई । डेटर्स के खातों की नकल प्रस्तुत की जा रही है । वर्ष 2009-10 की लाभ हानि खाता, बैलेंस शीट की नकल प्रस्तुत की जा रही है।" [underlined by us] (ii) The AO considered assessee's reply and accepted sources explained upto Rs. 22,00,000/- equivalent to the turnover of business declared by assessee u/s. 44AD. However, the AO rejected the recovery of Rs. 6,57,923/- from debtors claimed by assessee as source for making deposits and made addition to that extent u/s. 68. The order passed by AO is re-produced below: ....
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....साय किया जाता स्पष्ट होता है क्योंकि खली कपास्या व्यवसाय करने वाले संस्थान प्रह्लाद मिल्स, वेंकटेश्वर कंपनी, कमलेश्वर इंडस्ट्रीज इत्यादि को उनके द्वारा खरीदी के संबंध में चैक्स/आरटीजीएस के माध्यम से भ....
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....त की गई, जबकि इस हेतु उनको निर्धारण कार्रवाई के दौरान भरपूर एवं समुचित अवसर प्रदान किए गए । 2. करदाता द्वारा दावा किया गया था कि उनको विचाराधीन वर्ष के दौरान पुराने डैटर्स से उनकी धनराशि, नकद में वापस प्राप्त....
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....2352; नकली एवं बनावटी है । 3 निर्धारण कार्रवाई के दौरान करदाता से कहा गया कि इन सभी डैटर्स को प्रस्तुत करें लेकिन करदाता ऐसा नहीं कर पाए । 4. करदाता निर्धारण कार्रवाई के दौरान, संबंधित बिल्स एवं आवश्यक विवरण भी ê....
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....0;ा है कि रु. 657,923/- की राशि वास्तव में करदाता द्वार विचाराधीन वर्ष के दौरान अर्जित की हुई आय है, जिसे करारोपण हेतु उनके द्वारा प्रस्तुत नहीं किया गया । अतः उपरोक्त सभी तथ्यों के प्रकाश में रु. 657,923/- नकद बैंक जमा राशि के स....
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....he debtors and has added the said amount of Rs. 6,57,923/- to the Total Income of the Assessee u/s. 68 of the act while passing the Re-assessment Order passed u/s. 143(3)/147 of the Income Tax Act dated 10/12/2018. A.6]. That against the said order the appellant had filed an appeal before the Ld. CIT(Appeals), however the Ld. CIT(Appeals) has maintained the said addition of Rs. 6,57,923/- made by the Ld. AO. Vide his order dt. 26.09.2024 A.7] The present appeal before the Hon'ble Bench has been preferred by the Appellant against the order as passed by the Ld. AO u/s. 143(3)/147 of the Income Tax Act dated 10/12/2018 for the Assessment Year 2011-12 and confirmed by the Ld. CIT(A) vide order passed on 26.09.2024. SUBMISSIONS IN THE APPEAL ON MERITS OF THE CASE: 1.1] That in the present appeal the appellant has challenged the addition made by the Ld. A.O. of Rs. 6,57,923/- to his total income as his Income from undisclosed sources u/s. 68 of the Act even when the amount was deposited by him in the Saving Bank Account on account of recovery from the Debtors. 1.2) That the appellant is an individual and a small trader who was carrying on ....
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....ry made from the Debtors and the said amount was deposited by him in the Bank Account. 1.8) It is submitted that appellant has filed the return of income by declaring Income from the Business u/s. 44AD of the Act thus he was not required to maintain the regular books of account however the source of Cash deposited in the bank account was properly explained by him by way of all the documents filed before the A.O. and moreover these facts are clearly verifiable. Thus the appellant had fully explained the source of Cash deposited in his bank account of Rs. 6,7,923/- from recovery from Debtors and justified the genuineness of Cash Deposited by him. 1.9] However, while passing the assessment order it is respectfully submitted that the Ld. AO has not properly appreciated the facts of the case and the submission filed before him and has made an addition of amount of Rs. 6,57,923/- to the Total income purely on Conjectures and surmises. 1.10] The Ld. A.O. has not made any efforts to justify the addition made by him. He has neither issued any notice u/s. 133(6) or nor has he issued any summons to the Debtors parties to justify his action for addition made by him u....
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....68 of the Act cannot be be made on account of cash deposited in bank account if an assessee is not liable to maintain the regular books of accounts. 3.11. That the appellant is a small trader and was doing trading business of Cotton Seed Oil Cake during the year under consideration. The appellant had not maintained day-to-day books of accounts and has filed his return of income u/s. 44AD of the Income Tax Act. 3.2] That while passing the Re-assessment Order passed u/s. 143(3)/147 of the Income Tax Act, the Ld. A.O. had added an amount of Rs. 6,57,923/ to the total income of the appellant u/s. 68 of the act on account of cash deposited in the bank account by not accepting the explanation of the appellant that the said amount was deposited by him on account of recovery from the debtors. 3.3] It is submitted that Ses. 68 of the Act deals with unexplained cash credits. It provides that if any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, then the sum so....
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....,923/- u/s. 68 of the Act therefore requires to be deleted in full. 04] Addition in respect of Cash deposit in Bank Account in case details and nature of business were not forthcoming from record in case of Income offered under presumptive scheme had to be determined as per the said scheme 4.1] That as an alternative submission it is submitted that if the amount of Cash as deposited by the appellant is treated as sales proceeds from Khali business, then since the assessee had been a small trader and not maintaining regular books of accounts and has filed return of his income u/s. 44AD, the total income may be determined considering the provisions of Sec. 44AD of the Act @ 8% of Total Cash as deposited in the bank account and not the entire amount of cash which has been deposited by the assessee. 4.2] That in case of the appellant, the total cash which was considered by the Ld. AO as unexplained amounted to Rs. 6,57,923/-. Thus at the most, his income as per the provisions of Sec. 44AD can be of Rs. 53633/ which is computed as under:- Particulars Amount Turnover considering the amount of Cash Deposited as Unexplained Sales 6,57,923 Total Inc....
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....s vital corroborative evidence sufficient to dispel any doubt. That apart, the a/c confirmations also include full addresses of respective debtors. The copies of a/c confirmations and aadhar cards of debtors filed to AO, are available at Pages 9-31 of Paper-Book. Therefore, the observation made by AO in Point 2 of Para 4.2 of assessment-order is a baseless suspicion, not sustainable. (iii) The assessee carries business of a small scale in a small town where the persons would not extend much co-operation. However, the assessee has collected, with best of his efforts, aadhar cards from debtors and filed with a/c confirmations. The a/c confirmations also contain complete addresses of respective debtors. In such circumstances, the inability of assessee to produce debtors physically before AO should not be made the sole basis for drawing an adverse inference as made by AO in Point 3 of Para 4.2 of assessment-order. (iv) That, the assessee is exempted from maintaining books of account and carries on business in a small town, therefore the AO cannot expect assessee to maintain bills of sales, etc. Therefore, the observation made in Point 4 of Para 4.2 of assessment-order....
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....e assessee is exempted from maintaining books of account. The assessee has declared 8% presumptive income from business, which the AO has accepted. It is also an undisputed fact that the assessee had filed a Balance-Sheet, Capital Account, and List of Debtors as on 31.03.2010, along with a/c confirmations and aadhaar cards of 12 debtors, in support of his claim of recovery from debtors. The adverse observations made by Ld. AO while rejecting assessee's claim, are largely addressed by Ld. AR as already discussed by us in earlier Para 7 of this order; we do not wish to repeat same for the sake of brevity. Having carefully examined the facts of case and rival submissions of both sides, we are of the considered view that the addition of Rs. 6,57,923/- made by AO is not sustainable in present case. That apart, we find that the assessee is engaged in a small business of oil cake (khali) trading at a smaller place and there is no other source available to assessee on record except such business. Therefore, to close the litigation ensuing between assessee and revenue, we accept the agreeable proposal made by assessee to tax 8% presumptive income on the sum of Rs. 6,57,923/-. Accordingly, w....