TaxTMI 
TaxTMI 
2026 (1) TMI 412
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....N & order No./NFAC/S/250/2025-26/10767667061(1) & ITBA/NFAC/S/ 250/2025-26/1076767251(1) respectively. 2. The assessee has raised the following grounds of appeal in ITA No. 245/GTY/2025: "1. For that on the facts and circumstances of the case, the Learned Commissioner of Income Tax (Appeals) erred in law as well as on facts in sustaining additions made by the Assessing Officer u/s 69A to the extent of Rs. 87,05,746/-. 2. For that the appellant urges leave to add to, modify or delete any ground of appeal, before or at the time of hearing of the appeal." 2.1 The assessee has raised the following grounds of appeal in ITA No. 246/GTY/2025: "1. For that on the facts and circumstances of the case, the Learned Comm....
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.... through banking channel. He further submitted that during the year various cash was deposited in various bank account of Rs. 4,27,79,090/- is receipts out of sales receipts and services receipts. Some cash is out of cash in hand and revolving cash. He further submitted that assessee belongs to Scheduled Tribe by producing ST Certificate and claimed that his income earned from business activities mentioned above is exempted from income tax u/s 10(26) of the Act, therefore, he is not maintaining details books of accounts. Hence, he cannot produce cash book for the same period on 30.11.2022. He further submitted residency certificate, similarly for regarding statement (only credit entries reflecting cash and cheque deposit) in excel sheet, Fo....
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....n regard to addition u/s 69A of the Act. The Ld. CIT(A)(NFAC) after considering the entire submissions deleted the addition of Rs. 3,40,73,344/- and confirmed the addition of Rs. 87,05,746/-. The Ld. CIT(A)(NFAC) further in case of penalty levied u/s 271B of the Act was confirmed. 4. Aggrieved from the order of Ld. CIT(A)(NFAC) regarding confirmation of addition u/s 69A of the Act and penalty u/s 271B of the Act. The assessee filed appeal before the ITAT. 5. The Ld. counsel reiterated the submissions made before the Ld. CIT(A)(NFAC) and submitted that the submissions made before the Ld. CIT(A) regarding the addition of Rs. 87,05,746/- that the assessee is a director in M/s Yepthomi Motors Pvt. Ltd. and the collections of cash were rec....
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....Ltd. and as cash for past savings/opening balance. The Ld. CIT(A)(NFAC) after examining the submissions rightly confirmed the addition of Rs. 87,05,746/- for want of source of cash deposits. 6.1. He further submitted in respect of penalty initiated u/s 271B of the Act that the assessee require to maintain his books of accounts as per section 44AA of the Act and he had to obtain audit report as per section 44AB of the Act, since, the assessee's turnover excluding GST is Rs. 2,78,67,676/-. Therefore, the Ld. CIT(A) has rightly confirmed the penalty u/s 271B of the Act even the assessee is eligible for exemption u/s 10(26) of the Act. On his income. First the assessee has to compute his income as per the provisions of income tax act. Therea....
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....le opportunity of being heard to the assessee and assessee is directed to substantiate his case with cogent documentary evidence for the source of cash deposits and assessee is further directed not to seek any unnecessary adjournment for early disposal of the case. In case of failure, no second leniency shall be granted to the assessee. 8. In the result, ITA No. 245/GTY/2025 is allowed for statistical purposes. ITA No. 246/GTY/2025 9. Further, in case of penalty levied u/s 271B of the Act, we noted that during the course of assessment proceedings, the assessee himself conceded that he has not maintained books of accounts and during the course of appellate proceedings, it was also conceded in his statement of facts submitted before ....