2025 (6) TMI 1765

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....d 20.08.2024 passed for A.Y. 2017-18. 2. The brief facts of the case are that the assessee, an individual, originally filed the return of income for Assessment Year 2017-18 on 02.09.2017 declaring an income of Rs. 18,740/-. This was subsequently revised on 31.01.2018, showing a total income of Rs. 2,80,330/-. However, the Assessing Officer (AO) later received information that a substantial sum of Rs. 6,80,00,000/- had been credited and an equal amount debited from the assessee's bank account (A/c No. 0580501015446 with COSMOS Bank, Satellite Branch). These high-value fund transfers occurred during the third week of November 2016, which coincided with the demonetization period. On the basis of this information, the AO recorded that income....

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....(1), Ahmedabad, was claimed by the assessee to be without jurisdiction thereby rendering the entire reassessment process void ab initio. With respect to the addition of Rs. 6.80 crore under Section 69A of the Act, the assessee submitted that the AO acted merely on presumptions, without properly evaluating the replies and supporting documents filed by the assessee during the course of assessment proceedings. The assessee submitted that contrary to the AO's assertion that the assessee failed to explain the source of funds, the assessee had furnished detailed evidence including agreements to sale (Banakhat), ledgers, bank statements, and confirmations showing transactions with M/s. Ashtavinayak Realty Pvt. Ltd. and M/s. Green City Farms Pvt. L....

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.... assessee. 4. The Department is in appeal against the aforesaid order passed by CIT(Appeals), allowing the appeal of the assessee. The Department has raised the following grounds of appeal: "(a) The Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. (i) In this case, the assessee has received a credit amount in his account to the tune of Rs. 6,80,00,000/- and there were debit transactions on the same day in his bank account, and the same were not satisfactorily explained by the assessee during the assessment proceedings. (ii) The assessee has not furnished any explanation as regard to nature of business transaction with M/s. Ashtavinayak Reality Pvt. Ltd. and M/s. Green City Farms which co....

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....re duly recorded in the books of the assessee. This is supported by the ledger entries: Ashtvinayak Realty's ledger appears (at page 142 of the Paper Book), and Agarwal Enterprise's ledger (at page 517 of Paper-Book). Furthermore, the Counsel for the assessee submitted that the assessee discharged the initial burden of proof by providing comprehensive documentary evidence to establish the identity and creditworthiness of the parties and the genuineness of the transactions. These include ledger accounts, bank statements, income tax returns, and agreement documents. As per settled legal principles, once the assessee provides such evidence, the onus shifts to the Revenue to disprove the claims. In this case, however, the AO failed to conduct a....