2025 (8) TMI 1027

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....ted 17.01.2024, which in turn arises out of an assessment order passed by the Assessing Officer (in short 'AO') u/s 143(3) r.w.s 147 of the Income tax Act, 1961, dated 28.11.2019. 2. The grounds of appeal raised by the assessee are as follows: "1. Ld. CIT(A) has erred in law as well as on fact in upholding addition of Rs. 30,07,610/- being disallowance u/s 40A(3). 2. Ld. CIT(A) has erred in law as well as on fact in upholding addition made by ld.AO. when reasons for which reopening was made ceased to survive." 3. The assessee has raised, before us, an additional ground of appeal, which reads as under: "1. Ld. AO erred in law as well on facts by making an addition of Rs. 30,07,610/- being disallowance u/s. 40....

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....orded, by the assessing officer, under section 147/148 of the Act, based on the fact that the assessee has deposited cash in the bank account. However, the addition was made by the assessing officer, on different footing, under section 40A(3) of the Act, stating that there was a violation on the part of the assessee, as the assessee, made cash payment for purchase of recharge coupons more than Rs. 20,000 in a day, hence the aggregate case payment for purchase of recharge coupons is in violation of section 40A(3) of the Act. Therefore, the addition was made by the assessing officer, on the issue, which was never agitated by the assessing officer, in the reasons recorded u/s.147/ 148 of the Act. Therefore, Ld Counsel for the assessee submitte....

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.... to the respective agencies and to provide an opportunity to the assessee to explain the said cash deposit transactions in relation to non-filing of return of income. Accordingly, a letter u/s 133(6) was issued to the assessee on 06.03.2019 with a request to furnish the reply/information. 3. In response to the same, the assessee neither furnished copy of return of income nor submitted satisfactory reply. In view of the above facts, it is found that the assessee had made financial transactions and deposited cash of Rs. 41,83,900/- in his saving bank account(s) remained unexplained, as the assessee has not filed return of income for the year under consideration, although the total income of income of the assessee had exceeded the max....

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....echarge coupons in violation of sec. 40A(3) of LT Act comes to Rs. 30,07,610/- ...... 3.1 Therefore, vide letter dtd. 22.11.2019, the assessee was show-caused why an amount of Rs. 30,07,610/-, as cash payment in violation of sec. 40A(3) of IT Act should not be disallowed and added back to total income. In response, no reply has been received by this office. Therefore, it is clear that the assessee has no objection in proposed disallowance of Rs. 30,07,610/-. Hence, a disallowance of Rs. 30,07,610/- is disallowed herewith and added back to his total income." 11. Therefore, it is abundantly clear that reasons were recorded by the assessing officer, under section 147 of the Act, to reassess 'the cash deposit transactions in relatio....