TaxTMI 
TaxTMI 
2025 (7) TMI 111
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....s under: 1. The Commissioner of Income-tax (Appeals) [hereinafter referred to as "the CIT(A)] erred in taxing a sum of Rs. 4,45,600/-, being income from tuition fees and offered to tax, under section 69A of the Act by changing the basis of the addition without even providing an opportunity to rebut the same. The reasons given are wrong, contrary to facts of the case and against the provision of law; 2. The above grounds/sub grounds of appeal are without prejudice to each other; 3. The appellant craves the leave to add, amend or alter all or any of the grounds of appeal. 4. After having gone through the additional ground raised by the assessee and hearing the parties, I am of the view that the said ground is legal in question and requires no separate evidence and also goes to the roots of the case, therefore, while allowing the application, I permit the assessee to raise the said ground. Hence the same is admitted to be heard and decided on merits by the Bench. 5. As per the facts of the present case, the assessee filed her return of income thereby declaring a total income of Rs. 2,96,910/-. The said income includes tuition fees of Rs. 2,75,600/- whi....
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....ate Benches in the case of ACIT Vs. Prakash L. Shah (115 ITD 167) (Mum. Tri). And in the case of JCIT Vs. Flipkart India Pvt. Ltd. (ITA No 2846, 2847 & 2728/Bang/2018) (Bang. Tri), it was held as under: 18. We have heard the submission of the learned DR, who relied on the order of the AO. The learned counsel for the Assessee while relying on the order of the CIT(A), further submitted that ground No.3 & 4 raised by the revenue in the appeal for AY 2012-13, the ground with regard to the Assessee having control over WS Retail Pvt.Ltd., was not the basis of assessment and there is no factual basis for the revenue to raise such a ground. With regard to Gr.No.3 to 5 in AY 2013-14 & 2014-15 with regard to allegation that transaction between WS retail Pvt.Ltd., and the Assessee being not between unrelated parties, is also without any basis. The revenue has not brought on record any material to substantiate its case in the aforesaid grounds and therefore the decision rendered by the Tribunal in Assessee's own case for AY 2015-16, was rightly followed by the CIT(A) in deleting the addition made by the AO. 19. We have given a careful consideration to the rival submiss....
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....ill is without any basis. Accordingly, the loss declared by the Assessee in the return of income should be accepted by the AO and the action of disallowing the expenses in without any basis. 20. We are of the view that the aforesaid conclusion of the Tribunal will equally apply to AY 2012-13 to 2014-15 also as the basis of making the addition in these AYs are also the same as it was made in AY 2015-16. The allegation of the revenue regarding the Assessee and M/S.WS Retail Pvt.Ltd., being related parties does not emanate from the order of assessment. The revenue cannot be permitted to take a stand which was not the factual basis on which addition was made by the AO. Even otherwise, there is no basis for the stand taken by the revenue in the grounds of appeal. We therefore find no merit in these appeals by the revenue. Respectfully following the order of the Tribunal in Assessee's own case for AY 2015-16, we uphold the orders of the CIT(A) and dismiss, these appeals by the revenue. 21. In the result, appeals by the revenue are dismissed. 13. Admittedly under the present set of facts, no show cause notice was issued by Ld. CIT(A) before proceeding to apply the....
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.... be deemed to be the income of the assessee for such financial year. 18. In my considered view, the said provisions are applicable only where the assessee is found to be owner of money which has not been explained. However, in the present case, no physical cash was found in the course of search, therefore the provisions of section 69A of the Act cannot be invoked. In this regard reliance is being placed on the decision of M/s Rucha Consultancy LLP Vs. DCIT (ITA 4996/Mum/2024) (Mum.) wherein the Coordinate Bench of the Tribunal had held that for invoking the provisions of section 69A of the Act, it is required to be shown that money, bullion, jewellery were physically available and the assessee was found to be the owner thereof. But in the instant case, no physical money was found either with the assessee or with any other person, therefore the question of the assessee, being owner of the same does not arise at all. Hence, in my view the provisions of section 69A of the Act are not attracted. 19. Therefore, keeping in view the above findings, and while allowing the grounds raised by the assessee I direct the deletion of the additions made u/s 69A of the Act on the above basis ....
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....of books of account being maintained by the assessee, provisions of section 68/69A of the Act could not be invoked; 5. Addition under section 68/69A of the Act amounting to Rs. 2,66,000/- 5.1. The CIT(A) erred in confirming the action of the AO in taxing a sum of Rs. 2,66,000/- considering the same as unexplained cash credit under section 68/69A of the Act without appreciating that the source of such cash deposit has been duly explained by the assessee; 5.2. The CIT(A) / AO failed to appreciate that the assessee was not required to maintain books of accounts and that in the absence of books of account being maintained by the assessee, provisions of section 68/69A of the Act could not be invoked; 6. The CIT(A) erred in upholding the action of the AO in initiating penalty proceedings under section 274 rws 270A and 274 rws 271AAC of the Act. The reasons given are wrong, contrary to facts of the case and against the provision of law; 7. The above grounds/sub grounds of appeal are without prejudice to each other; 8. The appellant craves the leave to add, amend or alter all or any of the grounds of appeal. 22. As per the facts of t....
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....tain the books of accounts. 28. During the course of assessment proceedings, the assessee had provided (i) the details of party from whom the commission has been earned i.e. KIPL, (ii) copy of the agreement with KIPL and (iii) salary sheet maintained by KIPL wherein names of the persons, their PF and ESIC registration numbers, monthly gross salary, deduction on account of PF, ESIC, PT and net salary are duly reflected. Moreover, notice u/s 133(6) of the Act was also issued to KIPL, who had also confirmed the said transactions. Thus in my view, it cannot be said that the assessee had not explained the nature and source of commission income. 29. Moreover, the assessee had not been found to be owner of any physical cash found in the course of search so as to invoke provisions of section 69A of the Act, as has been held by the decision of Coordinate Bench of ITAT in the case of M/s Rucha Consultancy LLP Vs. DCIT (ITA 4996/Mum/2024) (Mum.). 30. As far as the plea of assessee's confession that she is a housewife and does not have any source of income is concern, in this regard I noticed that the assessee had already retracted the said statement by way of submission dated 19.11.2....
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.... (ITA 1937/Mum/2022) (Mum. Tri). And also keeping in view that assessee had in fact earned commission income from Krish Intratrade Pvt Ltd for assistance in hiring aadhar operators and had might have incurred expenses for earning the said income. Therefore I am of the view that the asssessee is entitled to be allowed expenses against earning of such commission thus I direct the deletion of disallowance of expenses made by the AO. 36. Ground No. 4, this ground raised by the assessee relates to challenging the taxing of tuition fee u/s 69A of the Act. 37 Since this ground identical to ground No. 2 raised in appeal No. ITA 1876/Mum/2025, A.Y 2020-21, and the decision rendered would apply mutatis mutandis for this ground also. Accordingly, the ground of appeal of the assessee stands allowed. 38. Ground No. 5, this ground raised by the assessee relates to challenging the order of Ld. CIT(A) in upholding the additions of Rs. 2,66,000/- u/s 69A of the Act being excess cash deposits. 39. I have heard the counsels for both the parties, perused the material placed on record, judgments cited before me and also the orders passed by the revenue authorities. From the records it is no....