2026 (2) TMI 157

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....IRI, JM: This appeal is directed against the order passed by the ld.Commissioner of Income Tax (Appeals), NFAC, ['CIT(A) in short] dated 22.07.2025 confirming the assessment framed by the Assessing Officer u/s. 143(3) of the Income Tax Act, 1961 ("the Act"), whereby an addition of Rs. 25,69,251/- was made by treating credit card payments as unexplained cash credits u/s. 68 of the Act, 1961. ....

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....ments aggregating to Rs. 25,69,251/-, issued a show cause notice proposing addition.The assessee explained that the credit card payments were largely made on behalf of relatives and family friends and were subsequently reimbursed either in cash or through banking channels, and that such payments were never claimed as business expenditure in the return of income. The Assessing Officer, however, com....

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....etailed explanations and confirmations from relatives and friends were furnished, which were not examined by the AO. He further noted that the credit card payments were not claimed as business expenditure, and therefore no income element arises. He stated that the matter requires proper factual verification and opportunity of hearing. 6. The ld. Departmental Representative relied on the orders ....

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....nfirmations, bank entries and nexus with personal or third-party expenditure. The assessee has consistently contended that a substantial portion of the payments were made on behalf of relatives and family friends and were reimbursed subsequently, and that such payments were not claimed as expenditure in the computation of income. The assessee has now placed on record confirmation letters and suppo....