Dipyaman Dutt Vs ITO (ITAT Kolkata)
The appeal before the ITAT Kolkata concerned addition of ₹36,62,530 sustained by the CIT(A) out of total cash deposits of ₹68 lakh made during AY 2014-15. The assessee, engaged in catering business under a valid trade license issued by Kolkata Municipal Corporation, had filed return under Section 44AD declaring turnover of ₹65,68,500 and profit of ₹5,56,133 at 8% on presumptive basis, without maintaining books of account. The Assessing Officer treated the entire ₹68 lakh cash deposits as unexplained income. On appeal, the CIT(A) granted partial relief by deleting ₹31,37,470 based on debit entries but sustained the balance addition. The Tribunal held that once income is declared under Section 44AD, no further addition can be made in respect of individual cash deposits, as the assessee is not required to explain each entry. Relying on judicial precedent, the Tribunal set aside the CIT(A)’s order and directed deletion of the addition. The assessee’s appeal was allowed.
Facts of the Case:-The assessee was engaged in the business of catering and held a valid trade license issued by the Kolkata Municipal Corporation. For Assessment Year 2014–15, the assessee filed his return of income under Section 44AD declaring total turnover of ₹65,68,500 and offering income at 8% amounting to ₹5,56,133 on presumptive basis. No books of account were maintained as permitted under the presumptive scheme.
