Neelam Chopda Vs. ITO, Ward-1, Rajnandgaon

Parties Involved

Facts Summary

Neelam Chopda, the assessee, filed an appeal against the order passed by the Commissioner of Income-Tax (Appeals), National Faceless Appeal Center (NFAC), Delhi, dated 25.02.2024. The order in question arose from the assessment order passed by the Assessing Officer under Section 147 of the Income-tax Act, 1961, dated 23.03.2022 for the assessment year 2016-17. The assessee had e-filed his return of income for A.Y.2016-17 on 22.02.2017, declaring an income of Rs.4,32,250/-. The Assessing Officer initiated proceedings under Section 147 of the Act based on information that the assessee had made cash deposits of Rs.2,82,98,000/- in his bank account during the subject year. The Assessing Officer estimated the business income at 5% of the cash deposits, amounting to Rs.14,14,900/-. The assessee had not participated in the assessment proceedings, leading to the framing of the assessment order under Section 144 of the Act. The assessee appealed to the Commissioner of Income-Tax (Appeals) but did not respond to notices, resulting in an ex-parte order dismissing the appeal. The assessee then appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. The Ld. CIT(A) erred in confirming addition of Rs.14,14,900/- as business income on the basis of estimating income at the rate of 5% of the cash deposits.
• 2. The appellant reserves the right to add, amend or modify any of the ground/s of appeal.

Judgment Outcome

Decided in favour of Assessee.

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