Javed Munir Khan Vs ITO (ITAT Mumbai)
Demonetisation Cash Deposits: Presumptive Income @8% Upheld — ITAT Dismisses Assessee’s Appeal
The Mumbai Bench of the Income Tax Appellate Tribunal dismissed the assessee’s appeal for AY 2017-18 and upheld the CIT(A)’s approach of taxing only the profit element embedded in cash deposits made during and after the demonetisation period.
The case involved substantial cash deposits aggregating to ₹1.13 crore during demonetisation and ₹92.64 lakh post-demonetisation. The Assessing Officer treated the deposits as unexplained under section 69A and estimated income at 10%. On appeal, the CIT(A) granted partial relief by holding that a portion of deposits (₹60.75 lakh) was in regular notes and could not be treated as unexplained money. Considering the assessee’s role as a commission agent (including Airtel Payment Bank transactions) and past acceptance of presumptive taxation, the CIT(A) applied section 44AD and computed business income at 8% on the recomputed turnover, sustaining an addition of ₹12.27 lakh.
Before the Tribunal, the assessee did not appear or place any fresh material to rebut the findings. The ITAT held that the CIT(A)’s order was well-reasoned, based on remand verification, and in accordance with law. Finding no factual or legal infirmity, the Tribunal dismissed the appeal.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
