2025 (6) TMI 783

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....to as 'the Act') dated 13.02.2024 by the Assessing Officer, DCIT, Central Circle, Dehradun (hereinafter referred to as 'ld. AO'). 2. The only effective issue to be decided in this appeal is as to whether the ld CIT(A) was justified in conforming the addition of Rs. 7,01,769/- u/s 69A read with Section 115BBE of the Act in the facts and circumstances of the instant case. 3. We have heard the rival submissions and perused the material available on record. The assessee filed her return for AY 2019-20 u/s 139(1) of the Act on 30.10.2019 declaring total income of Rs. 49,16,660/-. The assessee is engaged in the business of running a petrol pump under the name and style of M/s Guru Kripa Filling Station at Dehradun. A search and seizure oper....

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....rag Verma. Shri Dhananjai Singh was employed with assessee during the relevant year under consideration. However, Shri Anurag Verma was not employed with the assessee during the year under consideration and that is why the passbook and ATM Card of Shri Anurag Verma was not found at the time of search. The assessee explained the modus operandi adopted by her for making salary payment to the employees by directly crediting the amounts to the bank account of the employees and since, the employees are illiterate people, they use the assistance of assessee's manager to make withdrawals from their bank account as and when funds are required for them. The bank accounts were opened at the behest of the assessee for the employees with a scheduled ba....

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....ee is the owner of the monies lying to the credit of bank account of the employees. It is not in dispute that additions sustained by the ld CIT(A) to the tune of Rs. 7,01,769/- represent amounts lying to the credit of the employees of the assessee. The assessee is having control over its employees only for the limited purpose of extracting the work from them for the salary paid to them. The assessee has given a plausible explanation by explaining the modus operandi which remain undisputed that bank accounts were opened in the name of the employees with the scheduled bank wherein, the salaries are directly credited in the employees bank account. The assessee had also given explanation that passbooks and ATM cards of some employees found at t....