TaxTMI 
TaxTMI 
2025 (12) TMI 732
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....ome produced and submitted by the assessee during the assessment proceedings and brought nothing on record to prove or justify the assessee having some other source or hidden source of income. 4. That the Learned Assessing Officer has made the additions on the basis of incomplete information having no evidence and based on surmises on the directions given by DRP. 5. That the direction given by DRP has not appreciated the replies, proofs and documents submitted by the assessee and ignored it without any justification solely based on information provided by the Assessing Officer having no justified source and never presented before the assessee. 6. That the Kionex App from which the transaction was done has been closed and the assessee has produced all his bank accounts for the relevant transactions which were ignored by the Learned Assessing Officer and even the Assessing Officer done not have any confirmation from any credible source. 7. That it is utmost importance to find out the correctness of figures mentioned by the Learned Assessing Officer and to produce before the Assessee the documentary evidences of the said figures and information. ....
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.... removed from google playstore therefore, the assessee was not able to furnish transaction related documents from the site of Koinex app except the bank accounts i.e. the SBI NRO account and the SBI NRE account which clearly indicated the quantum of total transaction done by the assessee during the said financial year. Thus, it was submitted that the assessee began dealing in crypto currency with an initial investment of Rs. 1 Lac and a total investment of Rs. 10 Lacs only. All payments received out of sale from crypto currency was through his bank accounts and normal sale of only Rs. 1962 was made during the said year. The ld. AO went through the statement of the NRO account with SBI and tabulated the crypto related transaction. He concluded from the same that the assessee had invested Rs. 11 Lacs in crypto currencies during the year and received Rs. 1,07,590/- from crypto transactions, which was against his claim of Rs. 1963/- only. He, therefore, asked the assessee to furnish details of transactions made with Discidium Internet Labs Private Limited, ZEB IT Service Limited and Secure Bit Coin Trader Pvt. Ltd. In response, it was submitted that all the transactions done for the pu....
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....ntioned that since the same had been shut down therefore, no such transaction details could be restored or retrieved from the said platform. The only transaction in crypto currency was to the extent of Rs. 11 Lacs which was being reflected in the SBI NRO account of the assessee. The assessee submitted that transaction in crypto currency done on any platform could not be done in cash but only through the banks and the assessee had produced all bank accounts linked to his PAN and Aadhar for which the information had been demanded by the AO. From the transaction reflected in such accounts, there was clear evidence that the transactions had been done in crypto currency to the extent of only Rs. 11 Lacs. Thus, the assessee submitted an affidavit denying transactions stated to have been indulged in by him by the AO on the basis of information received from the Koinex platform. The ld. DRP observed that the AO had based his findings on information provided by Koinex which had provided that the assessee had purchased crypto currency amounting to Rs. 1,31,31,481/-. Hence, there was credible information on the basis of which the additions have been made. Now it was incumbent upon the assesse....
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....rnished with the details of the transaction on the basis of which the ld. AO had based his assumption of the extent of transactions. The ld. AR further submitted that the assessee was earning salary as a Crew member of a ship and was an NRI during the period. The salary earned by him had been deposited in his NRE, SBI A/c No. 35002283351 and this account was the only source from where the fund was being transferred to his NRO A/c No. 30777400637 with SBI, for crypto currency transaction and saving bank A/c No. 914010056602361 maintained with Axis Bank for personal domestic transaction. It was submitted that since the assessee had no source of income other than the income earned from foreign sources, which were fully explained, therefore, there was no occasion to make any addition in the hands of the assessee for the investment made in crypto currency, which according to the assessee amounted to only Rs. 11 Lacs. 5. On the other hand, Sh. Alok Bhura, Sr. DR submitted that the Department had received information from the Koinex Exchange platform that the assessee had made purchase transactions to the extent of Rs. 1,31,31,481/- and sale transactions to the extent of Rs. 1,28,58,58....