TaxTMI 
TaxTMI 
2025 (3) TMI 1550
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.... additions made by the Assessing Officer [hereinafter referred to as "AO"] in the assessment order dated 27/12/2019, passed under Section 144 of the Income Tax Act, 1961[hereinafter referred to as "the Act"]. Facts of the Case: 2. The case was selected for scrutiny based on information that the assessee had deposited substantial cash in bank accounts during the demonetization period. The AO issued a notice under Section 142(1) of the Act on 21/12/2017, followed by subsequent notices on 19/06/2019, 05/08/2019, and 26/11/2019, seeking an explanation for the deposits. However, the assessee failed to respond to these notices, and the AO proceeded with best judgment assessment under Section 144 of the Act. The AO issued notices under Secti....
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....860/-) were treated as unexplained money under Section 69A of the Act and taxed at a higher rate under Section 115BBE. The total assessed income was determined at Rs. 10,34,26,589/-, and a tax demand of Rs. 8,06,96,619/- was raised, along with interest under Sections 234A and 234B of the Act. 3. The assessee filed an appeal before the CIT(A), who issued three notices, but the assessee failed to reply to the notices. Therefore, based on the material available on records and the statement of facts filed along with Form 35, the CIT(A) dismissed the appeal. 4. Aggrieved by the order of the CIT(A), the assessee has preferred this appeal raising following grounds of appeal: 1. The Learned CIT(A) has grievously erred in law and on f....
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....it has already been estimated not permitted by the Law. 6A. The learned CIT(A) has erred in law and on facts in upholding the computation of tax as per section 115BBE on alleged addition u/s. 69A of Rs. 3,18,04,850 in as much as that the assessee is engaged in business of Re-charge and earning commission as per the facts already before the A.O. and wrongly applying the provision of section 115BBE to the facts of the assessee. 7. On the facts and considering the surrounding circumstances of the assessee, income ought not to have been assessed at Rs. 10,34,26,589/- submitted to be erroneous and bad in law. 9. He has erred in levying interest u/s. 234A of Rs. 1,44,45,683/- and 234B of Rs. 1,64,38,191/- of the I.T. Ac....
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....bserve that the assessment was completed ex-parte under Section 144 of the Act due to non-compliance by the assessee. Given the claimed exceptional circumstances (arrest, criminal complaints, and legal disputes), the assessee should be given one final opportunity to submit evidence. The dates of arrest and the dates of notices issued by the AO do not align, creating doubt over the credibility of the assessee's explanation for non-compliance. The assessee has not provided any documentary evidence to substantiate his claim that the cash deposits were business receipts except the Form 2 under PMGKY. The issue of income declared under PMGKY has not been examined by the AO or CIT(A), and this requires verification. 7.1. In view of the above, ....