2024 (12) TMI 146

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....l filed by the revenue has been dismissed against order dated 30.03.2023 passed by the National Faceless Appeal Centre, Delhi against the order of assessment passed under Section 143(3) of the Act. 2. The assessee, who was engaged in the business of providing security, housekeeping, manpower supply since 2009, during the financial year 2016-17, under an Agreement as Business Correspondent with First Rand Bank (for short 'the FRB'), a South African company, registered as foreign company in India under the Companies Act, carried out business of banking as the scheduled commercial bank after obtaining licence from the Reserve Bank of India. In terms of the Agreement executed between the FRB and the assessee, the arrangement inter-alia inclu....

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....or the period of demonetization i.e. 09.11.2016 to 31.12.2016 maintained the additions. Aggrieved by the order passed by the CIT(A), both the assessee and the department filed appeals. 5. The Tribunal, after hearing the parties and going through the Agreement between the FRB and the assessee, came to the conclusion that the plea raised by the department that the cash collected from the borrowers was supposed to be deposited in the account of the FRB as the assessee was supposed to open a bank account with the said Bank but without depositing the money in the account of the FRB, the assessee had deposited the cash in his bank account and thereafter transferred the money to the account of the FRB, was totally irrelevant consideration inasm....

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....ed the submissions made by learned counsel for the appellant and have perused the material available on record. 8. The CIT(A) and the Tribunal have recorded the objection of the department that the account of the assessee was contrary to the Agreement wherein he was supposed to deposit the money in the account of the FRB instead he deposited the cash in his bank account and thereafter transferred the money to the account of FRB which brings the deposit within the mischief of Section 69A of the Act. The CIT(A) and the Tribunal were justified in coming to the conclusion that only on account of purported infraction of the Agreement between the FRB and the assessee, without there being any dispute regarding the amount collected by the assess....