Case Law Details
Smt. Kopparum Laxminarayan Kumuda Vs ITO (ITAT Bangalore)
The case of Smt. Kopparum Laxminarayan Kumuda vs ITO, adjudicated by the Income Tax Appellate Tribunal (ITAT) Bangalore, revolves around the taxation of cash deposits arising from a store business. The appellant contested the CIT(A)’s order under section 250 of the Income Tax Act, 1961, for the Assessment Year 2017-18.
The appellant, an individual, failed to file income tax returns for the mentioned assessment year. Subsequently, the Assessing Officer (AO) completed an assessment under section 144 of the Act, attributing unexplained cash deposits and estimating business income. The appellant appealed to the First Appellate Authority (FAA), which dismissed the appeal due to non-response to notices.
During the Tribunal proceedings, the appellant’s representative argued that the cash deposits stemmed from a provision store operated by the appellant’s deceased husband. The appellant, being illiterate and unaware of the business operations, couldn’t respond to notices. The appellant pleaded for taxation of cash deposits at 8%, akin to small business presumptive rates.
Considering the evidence presented, including medical records and the death certificate of the appellant’s husband, the Tribunal inferred that the cash deposits likely originated from the business. It deemed taxation at 8% appropriate, aligning with presumptive rates for small businesses. The Tribunal upheld the estimation of business income by the AO.
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