TaxTMI 
TaxTMI 
2025 (7) TMI 311
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....eard together therefore they are being disposed off by this consolidated order for the sake of convenience and brevity. 3. We shall take ITA No. 833/Chd/2024 for the Assessment Year 2020-21 as a lead case wherein the assessee has raised following grounds: 1. On the facts and circumstances of the case, the Ld. CIT(A) vide order u/s 250(6) dated 28.06.2024 has erred in confirming action of the AO vide order u/s 153A r.w.s 143(3) in treating the revenue from business and profession to the tune of Rs. 231500/- as income from other sources. 2. That the Ld. CIT(A) has erred in restricting the expenses to Rs. 31500/- against Rs. 2136809/-claimed in P&L Account. 3. That the Ld. CIT(A) has erred in confirming the action....
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....ppreciate that all the receipts for service were received through banking channel and has ignored the party wise details, PAN, GST No, tax invoices, etc submitted during appellate proceedings. 9. That notwithstanding the aforesaid grounds, the Ld. CIT(A) has erred in confirming the action of the AO without appreciating that the books of accounts are subject to audit and all the business transactions are duly part of the audit report furnished during the appellate proceedings 10. That the appellant craves leave to add or amend the grounds of appeal before the appeal is heard and disposed off. 4. Briefly the facts of the case are that the assessee is a private limited company engaged in the business of software developmen....
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....ain expenses in the computation of income that were not related to the business. 7.2 The Ld. Counsel for the Assessee also submitted that the books of accounts were duly audited under the Companies Act and tax audit under section 44AB was also conducted. No adverse remarks were pointed out by the auditors regarding the business activities. Thus, the treatment of income from software development as "income from other sources" is wholly unwarranted and arbitrary. 7.3 It was also emphasized that no incriminating material was found during the search, and in such circumstances, no addition could have been made under section 153A as per the law laid down by the Hon'ble Supreme Court in Abhisar Buildwell Pvt. Ltd. [2023] 149 taxmann.com 399 ....
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....ough bank. * Business objects duly reflected in Memorandum and Articles of Association (MOA and AOA) * Confirmation letters. 9.2 In the absence of any contrary material brought on record by the AO to establish that the services were not rendered or the receipts were sham, the re-characterisation of this income, as income from other sources is unsustainable in law. The revenue from identifiable clients under valid tax invoices cannot be brushed aside based merely on assumptions unless contradictory / corroborative evidence clinching the issue is collected during the course of search or brought on record by the AO. Admittedly, no incriminating material was found during the course of search nor any evidence was relied upon....
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....see was not carrying the business activities and no positive evidence was brought on record. 9.4.3 The CIT(A) also overlooked the fact that the assessee had suo motu disallowed Rs. 25.92 lakhs worth of non-business expenses (e.g., municipal taxes, unrelated depreciation), and the remaining expenses were linked to the operational business. 9.4.4 In the absence of any finding that expenses were either bogus or unrelated to business, the disallowance of Rs. 21,36,809/- is unjustified. Hence, the same is directed to be deleted. 9.5 Principle of Consistency 9.5.1 The principle of consistency, as upheld by the Hon'ble Supreme Court in Radhasoami Satsang v. CIT [1992] 193 ITR 321 (SC), mandates that where the facts remain the same, the....