2025 (10) TMI 955

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....28.6.2025 for which credit is not given. 2. At the time of hearing of the stay petition, with the consent of both the parties, the ITA No.1701/Bang/2025 looking at the facts of the case, was also heard. Both the parties waived the service of notice. 3. Brief facts of the case shows that assessee is an individual who did not file any return of income. As per the information available, under Risk Management Strategy (RMS), it was found that in her savings bank account with State Bank of India, assessee has deposited in cash a sum of Rs. 76,81,000/- and therefore, notice u/s 148A(b) of the Income Tax Act, 1961 (in short "The Act") was issued and subsequently order u/s 148A(d) of the Act was passed on 15.3.2024 and subsequently notice u/s....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....see. From that State Bank of India account, the 7 credit cards of the son of the assessee were paid. Therefore, she has offered 5% of the income on presumptive basis. The sale of Rs. 80,50,200/- was determined on the basis of the bank statement submitted by the assessee by her. 6. The ld. AO disbelieved the above transaction and made an addition of Rs. 76,81,000/- u/s 69A of the Act and passed a reassessment order u/s 147 r.w.s. 144 r.w.s. 144B of the Act on 8.3.2025. The total income of the assessee was determined at Rs. 81,76,010/-. 7. Aggrieved with the assessment order, the assessee preferred an appeal before the ld. CIT(A), where the contentions were reiterated and assessee also submitted the summary of bank credits as per Annexu....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 8% of the turnover. Such rectification application is made before the AO and due tax thereon was also paid. 10. The ld. D.R. supported the order of the ld. Lower authorities. The ld. D.R. also stated that if the assessee can demonstrate that this is the business of the assessee, the matter needs to be restored back to the file of AO. 11. We have carefully considered the rival contentions of the ld. Lower authorities. The facts involved in this case is that the son of the assessee used to buy the electronic goods such as mobile phones etc. from various e-commerce websites by using his 6 credit cards. The bills were booked in the name of his near relatives and friends. As soon as these mobile phones are received, he used to sell the sa....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ng to the assessee, the actual cash sale is Rs. 77,01,000/-. Thus, it is higher than amount of cash deposit mentioned by the AO. Assessee has further stated that there are also sales recorded in the bank account through UPI payments and her total turnover is Rs. 80,50,200/-. On the basis of the above circumstantial evidences, it is the plausible argument of the assessee that when it purchases the electronic goods naturally the amount credit received in the bank account is from the sale of those goods. This is also linked from the fact that amount deposited in the State Bank of India in cash goes to repay dues of the same credit card statement from which these goods have been purchased. In view of the above facts, the addition made by the AO....