2025 (2) TMI 1323

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....20, 2020-21 & 2021-22. The impugned order was emanated from the orders of the Deputy Commissioner of Income-tax,Central Circle-2(1), Mumbai passed under section 147 / 143(3) of the Act, date of orders 03/11/2023. 2. All the appeals have same nature of fact and common issue, accordingly, ITA No.3770/Mum/2024 for A.Y. 2019-20 is taken as lead case. The assessee has raised the following grounds of appeal:- ITA No.3770/Mum/2024 1. The Ld. CIT(A) has completed the assessment without considering the facts and circumstances of the case, which is contrary to law and is against the principles of natural justice. 2. The Ld. CIT(A) ought to have considered that appellant's Living Expenses of Rs. 2,00,000 for 126 days stay in In....

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....pprox.). 6. The appellant craves leave to add, alter, amend, modify, substitute or delete any or all of the above grounds of appeal." 3. The brief facts of the case are that the assessee is an individual and citizen of China working as a shareholder and director of a company, M/s Fengyuan India Pvt Ltd at Navi Mumbai. A search and seizure action was conducted in the group case of Bane Peng (M/s. Tianchao Import Export Trading Pvt. Ltd.) & others on 06/11/2021. On the basis of the search, the assessee's case was taken for scrutiny under section 148 of the Act. During the assessment proceedings, it was found that the assessee had not received salary for this assessment year and the assessee had filed the return of income by declar....

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....shareholder of the company. The company has duly borne the assessee's living expenses, and the monthly expenditure was independently estimated by the Ld. AO without reference to any comparative analysis or other verifiable data. Furthermore, we note that the company has borne the personal expenses of the assessee, which were appropriately added back during the computation of income. The assessee resides alone in accommodation provided by the company, and all living expenses have been confirmed as being borne by the company. 5. The Ld. DR has relied upon the orders of the revenue authorities to support their arguments. 6. After careful consideration, we find that the Ld. AO's calculation of the assessee's living expenses la....