TaxTMI 
TaxTMI 
TaxTMI 
2022 (11) TMI 358
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.... circumstances of the case in law, the Learned Assessing Officer erred in directing addition of Rs. 9, 72,500/- u/s 69C r.w.s.115BBE of the Income Tax Act, 1961. 2. The assessment was completed for the A.Y 2017-18 u/s 143 (3) on 02-12-2019 showing the tax liability along with interest of Rs. 2,14,42,806/- & issued notice separately levying penalty u/s 271AAC. 3. The learned assessing officer considered the payment of credit card by cash as a unexplained expenditure u/s 69C of the Income Tax Act, 1961 and made the addition of Rs.9,72,500/-. 4. The appellant preferred an appeal before the Commissioner of Income Tax where the order ofthe Assistant commissioner was further upheld. 5. The appellant is an individual of 49 years of age....
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....anation about the source of such expenditure or part thereof, or the explanation, if any, offered by him is not, in the opinion of the [Assessing] Officer, satisfactory, the amount covered by such expenditure or part thereof, as the case may be, may be deemed to be the income of the assessee for such financial year. [Provided that, notwithstanding anything contained in any other provision of this Act, such unexplained expenditure which is deemed to be the income of the assessee shall not be allowed as a deduction under any head of income.] But as far as our case is concerned, assessee has already disclosed in the Books of Accounts/provided allthe relevant information to the relevant authorities pertaining to cash payment of Credit card p....
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....ting addition of Rs. 9,72,500/- u/s 69C r. w. s 115BBE of the Income Tax Act, 1961. The order under appeal is not only bad in law and invalid, but also against the principles of natural law, equity and justice. The Appellant craves leave to amend, alter, add or delete all or any of the grounds of appeal." 2. Brief facts of the case are that the assessee is a proprietor of M/s. Shivom Logistics engaged in the business of goods transport agency services filed his return of income on 26.10.2017 declaring net taxable income at Rs. 5,34,10,630/-. The case was selected under CASS for limited scrutiny purposes to verify "large cash payments made for credit card purchases. Notice u/s 142(1) along with questionnaire were issued to the assesseeC....
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.... in hand as on 01-04-2016 9,12,800 Add: Withdrawals made during the FY 2016-17 (upto Oct. 2016) 2,10,000 Opening balance of cash in hand as on 01-04-2015 from personal account 3,57,250 Add: Withdrawals made from personal account during FY 2016-17 2,69,521 Total 17,49,571 Being an auditable assessee amount of Rs. 11,22,800/- (Rs. 9,12,800/-+Rs. 2,10,000/-) can never be under challenge as the same are duly reflected in assessee's business book which were duly audited secondly department also can't challenge the worth and liquidity position of the assessee. 5. The addition made by AO without any adverse comment on the cash-book of the assessee (business cash book and personal cash book), additions made will be counted in the categ....