2025 (12) TMI 495

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....case, CIT(A) has erred in confirming addition of Rs. 4,49,000/- made by assessing officer by invoking provision of section 68 of alleged unaccounted sum by ignoring that provision of section 68 is applicable to the sum credited in the books of account. The Assessee prays that the addition of Rs. 4,49,000/- made u/s. 68 be deleted. 3. That assessee reserves the right to add or alter/withdraw any ground/grounds of appeal at the time of hearing." 2. Brief facts in this case are that the assessee is an advocate and practicing in Income Tax and GST. He had e-filed his return of income for A.Y. 2017-18 declaring total income at Rs. 3,98,320/- and the return was duly processed. The case was selected for limited scrutiny through CASS fo....

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.... traders doing petty business, so once these amounts are accumulated, it is deposited in the bank account of the assessee from where the money is used for settlement of government taxes and other disputes for and on behalf of the said assessees. These submissions of the assessee were summarily dismissed by the A.O without any specific enquiry and reasoning. 4. That even the Ld. CIT(Appeals)/NFAC had upheld the said addition even without independent application of mind and enquiry as mandated u/s. 250(4) & (6) of the Act. 5. At the time of hearing, the assessee who himself had appeared before the Bench vehemently contended that it is regular way of practice in the field of GST where the petty business persons are involved and that they....

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....ned silent regarding challans/evidence that were uploaded by the assessee. The Revenue has even accepted the source of professional income of the assessee as an advocate. When the department does not have any evidence to demonstrate any undisclosed source of the assessee for depositing such money, when the department has not denied the claim of the assessee that it is a matter of common practice where an advocate would collect money in cash from petty business persons and deposit it in his bank account for online banking transaction to comply with the government notices and tax liabilities for his clients, when the department has not brought out any findings on facts so to justify the addition u/s. 69A of the Act that those amounts deposite....