News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
From the Courts »
 AT & T Global Network Services (India) Private Limited Mohan Dev House, Tolstoy Marg, New Delhi - 110001 vs. Additional Commissioner of Income Tax Special Range-1 New Delhi
 Mohd. Ismile H.No. 729, Sanjay Colony, Arthala, Ghaziabad, Uttar Prades. vs. ITO Ward 1(4) Ghaziabad.
 ACIT, Central Circle-22, New Delhi, Vs. M/sSatnam International P. Ltd., 201, Vipps Centre, 2, Community Complex, Masjid Moth, G.K. II, New Delhi
 American Express (I) P. Ltd., Metropolitan Saket, 7th floor, Office Block, District Centre, New Delhi. Vs. DCIT, Circle-2(2), New Delhi.
 Satish Kumar Gautam 302, Triveni Complex, E-10/12, Jawahar Park, Luxmi Nagar, Delhi. Vs. Income Tax Officer, Ward 3(3), Noida.
 The Income Tax Officer Ward 1 (1) New Delhi Vs. AASl (India) Properties In Infrastructure Private Limited 4 A/10, Old Rajinder Nagar New Delhi
 M/s Rita Plastics Pvt. Ltd., A-53, Vishal Enclave, New Delhi-110027 Vs. Income Tax officer, Ward 15(4), New Delhi.
 When is the last day to file income tax returns?
 Asstt. Commissioner of Income Tax, Central Circle -28, New Delhi. Vs. M/s Triveni Motors, C-691, New Friends Colony, New Dlhi.a
 Alfa Bhoj Limited, 4A, Pusa Road, New Delhi Vs. ACIT, Central Circle-3, New Delhia
 Pawan Kumar Singhal, 157, Chanderpuri, Ghaziabad- 201001, Vs. ACIT, Circle -2, Ghaziabad.

Income Tax Officer, Ward 43(2), New Delhi Vs. Sh. Shobhit Tyagi GH-53, Windsor Park Plot No.-15, Vebhav Khand, Inderapuram, Ghaziabad-201010
December, 18th 2014
                 DELHI BENCH `G', NEW DELHI
      Before Sh. N. K. Saini, AM And Sh. A. T Varkey, JM
             ITA No. 3493/Del/2013 : Asstt. Year : 2009-10

Income Tax Officer,            Vs    Sh. Shobhit Tyagi
Ward 43(2),                          GH-53, Windsor Park Plot No.-15,
New Delhi                            Vebhav Khand, Inderapuram,
(APPELLANT)                          (RESPONDENT)
            Assessee by : Sh. B. R. R. Kumar, Sr. DR
            Revenue by : Sh. Devinder Pal Singh, Adv.

Date of Hearing : 04.12.2014         Date of Pronouncement : 11.12.2014

Per N. K. Saini, AM:

      This is an appeal by the department against the order dated
28.03.2013 of CIT(A)-XXX, New Delhi.

2.    The only effective ground raised in this appeal reads as under:
     "On the facts and in the circumstances of the case, the Ld.
     CIT(A) has erred in allowing of Rs. 12,12,500/- out of total
     addition of Rs. 13,40,500/- made u/s 68 of the I. T Act by the
     AO on account of unexplained cash credits by holding that
     the said cash credits were assessee's turnover of business to
     be taxes u/s 44AF of the I.T. Act by taking a net profit @ 8%
     at Rs. 1,28,000/- by ignoring the material fact that no such
     income from business was declared by the assessee in his
     return of income."
                                      2                      ITA No. 3493/Del/2013
                                                                  Shobhit Tyagi

3.    The facts of the case in brief are that the assessee filed his return of
income declaring an income of Rs. 6,00,540/- on 31.07.2009 which was
processed u/s 143(1) of the I.T Act, 1961 (hereinafter referred to as the
Act) on 30.04.2010. Later on the case was selected for scrutiny. The AO
noticed that the assessee deposited Rs. 13,40,500/- upto 31.03.2009 in the
Punjab National Bank. He asked the assessee to produce the bank pass
book with narration. The assessee furnished the bank pass book and stated
that he started some short of handloom and wooden items business which
was operated from house and looked after by his wife. It was further stated
that the business was not profitable hence it was closed and the cash
withdrawals & deposits were related to that business. The AO was not
satisfied from the submissions of the assessee and observed that the
assessee was bank employee and that no such income was shown in the
return of income. He, therefore, added a sum of Rs. 13,40,500/-.

4.    Being aggrieved the assessee carried the matter to the ld. CIT(A) and
submitted as under:
     "That while framing assessment during the year under
     consideration the Ld. AO has framed took the view of his
     wrong conceptions, notions and without applying his legitimate
     mind and added Rs. 13,40,500/- to the income of the assessee
     which was deposited in to bank account no.
     04496000100029698 maintained with the Punjab National
     Bank, Vikas Puri Branch, New Delhi copy of the same has
     already been placed on record with your goodself. It is also
     worth stating here that the Appellant/Assessee made full
     disclosures during the course of the proceedings of the
     assessment and had submitted that the he had started a small
                                      3                      ITA No. 3493/Del/2013
                                                                  Shobhit Tyagi

     business of handloom and small wooden items operated from
     the house and the same was looked after by his wife. The
     business was not profitable hence the same was discontinued
     by the Appellant/assessee. All the purchases were made from
     the Panipat which is near to Saharanpur, the wife of the
     Appellant/assessee had been looking after the said business
     and all the cash payments has been withdrawn from
     Saharanpur. It's further pertinent to mention here that the Ld.
     AO did not apply his legitimate mind and added all such cash
     deposits in the income of the Appellant/assessee and taxed the
     same. Now at this stage the assessee submits and offers, to end
     up the issue and buy peace of mind, the said cash credits may
     be taken at Rs. 16,00,000/- (Rs. Sixteen Lac) to be treated as its
     turnover of business and be taxed under section 44AF of the
     Income Tax Act taking a net profit @ 8% which comes to Rs.

5.    After considering the submissions of the assessee, the ld. CIT(A)
observed that the assessee started a small business of handloom and small
wooden items operated from the house which was looked after by his wife
and the assessee to buy peace of mind surrendered Rs. 1,28,000/- @ 8% of
Rs. 16,00,000/-. The ld. CIT(A) confirmed the addition of Rs. 1,28,000/-
and deleted the remaining addition of Rs. 12,12,500/-. Now the department
is in appeal.

6.    We have considered the submissions of the ld. DR alongwith the
written submission furnished by the assessee. In the present case it is an
admitted fact that the various deposits totaling to Rs. 13,40,500/- were
made in the bank account of the assessee, detail of the same is given by the
AO at page nos. 1 to 7 of the assessment order dated 29.11.2011. The
                                      4                      ITA No. 3493/Del/2013
                                                                  Shobhit Tyagi

Explanation of the assessee regarding those deposits was that he was doing
small business in handicraft and wooden items which was looked after by
his wife from his house. All the cash payments had been withdrawn from
Saharanpur and utilized for making the purchases from Panipat which is
near to Saharanpur, therefore, the Explanation of the assessee appears to be
plausible. The assessee was doing the small business in handicraft and
wooden items which were purchased from Panipat (near to Saharanpur).
As the assessee was doing small business and the turnover was less than
Rs. 40,00,000/-, the assessee offered the income of the said business u/s
44AF of the Act on the estimated turnover of Rs. 16,00,000/- which was
more than Rs. 13,40,500/- deposited on various dates throughout the year
in the bank account. In our opinion the ld. CIT(A) rightly sustained the
addition of Rs. 1,28,000/- considering the same as profit @ 8% on the
turnover of Rs. 16,00,000/-. We do not see any infirmity in the order of the
CIT(A) and accordingly do not see any merit in this appeal of the

7.    In the result, the appeal of the department is dismissed.
(Order pronounced in the open Court on 11/12/2014).

           Sd/-                                               Sd/-
  (A. T. Varkey)                                    (N. K. Saini)
JUDICIAL MEMBER                                ACCOUNTANT MEMBER
Dated: 11/12/2014
                                               5                           ITA No. 3493/Del/2013
                                                                                Shobhit Tyagi

Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(Appeals)
                                                                 ASSISTANT REGISTRAR

                                                        Date     Initial
1.     Draft dictated on                            05.12.2014              PS
2.     Draft placed before author                   05.12.2014              PS
3.     Draft proposed & placed before the                                   JM/AM
       second member
4.     Draft discussed/approved by Second                                   JM/AM
5.     Approved Draft comes to the Sr.PS/PS                                 PS/PS
6.     Kept for pronouncement on                                            PS
7.     File sent to the Bench Clerk                                         PS
8.     Date on which file goes to the AR
9.     Date on which file goes to the Head Clerk.
10.    Date of dispatch of Order.
Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Integrated Software Solutions Integrated Software Development Integrated Software Services Integrated Software Solutions India Integrated Softw

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions