Guddu Kumar Gupta vs. The ACIT, ITO

Parties Involved

Facts Summary

The assessee, Guddu Kumar Gupta, did not file his return of income for the year under consideration. The Department noticed that the assessee had deposited a sum of Rs.1,46,63,200/- in his savings bank account. The Assessing Officer issued a notice under section 142(1) of the Income Tax Act, 1961, calling upon the assessee to furnish details regarding the cash deposits in his bank account, but there was no response from the assessee. The Assessing Officer treated 8% of the cash deposit of Rs.1,46,63,200/-, i.e. Rs.11,73,056/- as the undisclosed income of the assessee and added the same to his income under section 44AD of the Act. The Assessing Officer also initiated penalty proceedings under sections 271F, 271(1)(b) and 271(1)(c) of the Act. The assessee preferred an appeal before the NFAC, which was dismissed. The assessee then approached the Income Tax Appellate Tribunal challenging the action of the NFAC.…

Legal Issues

• 1. The Ld. CIT(A) erred in facts and law to dismiss the appeal by mentioning in his order dated 09.02.2024 that in column no.9 of form 35 assessee has mentioned 'Not Applicable' instead of mentioning whether an amount equal to the amount of advance tax as per section 249(4)(b) of the Income Tax Act, 1961 has been paid, whereas the fact is that the income of the assesse was below the taxable limit and there was no liability of the assesse to pay advance tax and hence it was mentioned 'Not Applicable', and as such the order passed by the CIT(A) is unjustified, bad in law, and against the principle of natural justice and the same deserves to be quashed.
• 2. The appeal of the assessee in ITA No.70/Alld/2024 is duplication of appeal in ITA No.59/Alld/2024, raising the same grounds of appeal as raised in ITA No.59/Alld/2024 and against the same impugned order of the ld. CIT(A).

Judgment Outcome

Decided in favour of Assessee.

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