Victory for Fairness: SPK & Associates Secures Favorable Outcome in Complex Income Tax scrutiny in the Case of Sale of Agricultural produce on commission basis
Victory for Fairness: SPK & Associates Secures Favorable Outcome in Complex Agricultural Business Tax Scrutiny
SPK & Associates is proud to announce the successful resolution of a challenging income tax scrutiny case for our client, Mr. Sandip Kamthe, a flower trader operating in the Pune Market Yard. The favorable outcome, achieved through strategic legal intervention, reflects our commitment to rigorous advocacy and meticulous documentation in complex tax matters.
The Challenge: Unexplained Cash Deposits and Ex-Parte Addition
The case concerned the Assessment Year 2013–14, during which the Income Tax Department flagged cash deposits totaling Rs. 50,70,068 in the client’s bank account. Due to initial non-compliance during the proceedings, an ex-parte assessment order was passed, adding the entire amount as unexplained money under Section 69A of the Income Tax Act.
Our Strategic Intervention
Under our guidance, the client filed an appeal, and the case was transferred to the National Faceless Appeal Centre (NFAC). Our team demonstrated the genuine nature of the client’s business and established the necessity of cash transactions in the agricultural trade:
- Business Justification: The client runs Sai Prasad Pushp Bhandar, a registered APMC trader dealing in flowers and operating as a commission agent.
- Nature of Cash Flow: We explained that the agricultural produce sector commonly relies on cash, as many farmers prefer or require cash payments due to limited banking access.
- Procedural Fairness: We persuaded the NFAC that extensive factual verification was required. The ex-parte order was set aside, and a fresh assessment was directed, ensuring the client received a fair hearing.
Final Resolution: Acceptance of Returned Income
- In the reassessment proceedings, we provided detailed documentation including business records, bank statements, income computation, and the APMC license. After examining the evidence, the Assessing Officer accepted our explanations and concluded the assessment by fully accepting the income originally declared by the client.
The SPK Advantage
This case demonstrates how informed legal strategy and precise documentation can turn an adverse tax assessment into a fair and favorable outcome. SPK & Associates remains dedicated to defending client interests with diligence, transparency, and integrity in every matter we undertake.