AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2026 (3) TMI 368
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....was appearing. Further, there is a delay of 419 days in filing of this appeal by the assessee. Under these circumstances, we deem it proper to decide this appeal on the basis of material available on record and after hearing the Ld. DR. 3. Facts of the case, in brief, are that the assessee is an individual and engaged in the business as distributor of Vodafone Idea Ltd under the trade name Navkar Agency. The assessee collects recharge amount for the company and remits the same to the company and he gets commission from the company. He filed his return of income declaring total income of Rs. 3,16,180/ -. The case was selected for scrutiny under CASS for the following reason: "Large cash deposits in bank account(s) during the year....
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....he appellant @ 8% of the cash deposits in the bank account of the appellant despite the fact that the appellant is service provider for recharge vouchers for Vodafone Idea Ltd and the income of the appellant is only commission received from Vodafone Idea Ltd and hence the assessment of the income by applying 8% Net profit ratio is patently invalid and perverse being contrary to the facts and evidences and hence deserves to be deleted. 2. Learned CIT Appeal has erred in fact and in law in directing AO to determine income of the appellant @ 8% of the cash deposits in the bank account of the appellant despite the fact that the cash deposited by the appellant was collected from customers of the company namely Vodafone Idea Ltd and this....
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.... under: The assessee furnished return of income electronically under Ack. No. 495682290250316 declaring total income of Rs. 3,16,180 on 25-03-2018 This case has been selected for scrutiny under CASS (Limited scrutiny for AY 2017-16 for the following reason "Large cash deposits in bank account(s) during the year." Accordingly, notice u/s. 143(2) of I.T.Act 1961 was issued on 14-08-2018 and duly served on the assessee electronically. There was no compliance by assessee Thereafter, notices u/s. 142(1) of the Act was issued on 30-07-2019 for compliance on or before 14-08-2019. However, there was no compliance on the part of assessee. As there was change in incumbent of office, notice u/s 142(1) of the Act was issued o....
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....issue show cause notice for penalty u/s 271AAC. Issue demand notice after due verification of prepaid taxes. 5.3. a) The reply of the appellant dated 16.01.2024 and various documentary evidences i.e. statement of bank accounts, bank summary, unaudited Financials and copy of distributorship agreement with Vodafone Idea Ltd. (without date of execution and bearing signature of only appellant) submitted by the appellant has been considered and it is noticed that most of the cash deposits were made in small amounts at frequent intervals. Further, these cash deposits were utilized for making payments to the IDEA CELLULAR LTD. (Deutsche Bank Mumbai). b) The appellant being a Distributor of Vodafone Idea Ltd .; during the assessme....
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....hout the year, which have been further utilized for making payments to the suppliers by the appellant. 5.5. a) Considering the above factual matrix of the case & bank statement submitted, it would be in the nature of justice to treat the 8% of entire receipts during the AY as taxable income from business and profession. b) Further, all the penalty proceedings initiated for non-compliances, and misreporting/ under-reporting of income etc. should prevail as per provisions of the respective sections of the Act. 5.6 In light of the above, the Assessing officer is directed to verify the contentions made by the appellant regarding the sources of the cash deposits that it is from the Distribution of Vodafone idea Sim and....