2026 (3) TMI 789

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....e CIT(A)') u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') arising out of assessment order dated 22.02.2021 of Ld. AO/NFAC, (hereinafter referred to as 'Ld. AO'), u/s 143(3) r.w.s 143(3A) & 143(3B) of the Act for AY: 2018-19. 2. Brief facts of the case are that assessee filed return of income on 22.07.2018 declaring gross income of Rs. 4,12,748/-. The case was selected for limited scrutiny assessment for "high value cash deposits reported in SFT (Business cases)". Notices u/s 143(2) dated 28.09.2019 was issued which was partially complied by the assessee. The detailed questionnaire u/s 142(1) dated 02.12.2019 along with reminders dated 26.02.2020 & 22.12.2020 were issued for submission of documentary evidence a....

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....ment forgery as investigated by ED and the matter is sub-judice. Therefore, the genuineness of transactions undertaken by the assessee with Hermes i-Ticket Private Limited are also doubtful." 6. Cross Objection No. 185/Del/2025 mentions following grounds: Ground No. 1 That the Ld. CIT(A) has rightly deleted the addition of 74,76,24,755/- made u/s 68 by holding that the entire cash deposit represented business transactions as a Customer Service Point of Business Correspondents and could not be treated as undisclosed income of the assessee. Ground No. 2 That the Ld. CIT(A) rightly held that the assessment order suffered from serious procedural lapses, including failure to issue a proper show cau....

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.... variations, contravening statutory procedures and principles of natural justice. Ground No. 7 That the learned AO has failed to offer and grant the respondent a meaningful opportunity of personal hearing via video conferencing, as mandated by Section 144B(7)(vii) and relevant CBDT circulars. Despite specific requests made for personal hearing, the same was not accorded prior to passing the assessment order, resulting in substantial prejudice to the respondent." 7. The ld. Departmental Representative submitted that ld. CIT(A) erred in ignoring the facts in the remand report. The Ld. CIT(A) erred in ignoring the facts that Hermes i-Ticket Private Limited is suspected to be engaged in money laundering and document forgery....

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....nts' account and from there in to customers' account. Further, in case of cash withdrawal, the amount is withdrawn from customer's account and then cash provided to customer through Kiosk banking. 6.3 I have examined the submissions of the appellant. It is a fact that various banks in India have appointed Business Correspondents acting as their intermediaries. On closer scrutiny of the type and nature of business of the appellant it is found that entities like Hermes I-Tickets Pvt Ltd, Apna Money etc are Business Correspondents(BCs) acting as intermediaries of various banks in India. They offer services like Account opening, cash deposits and withdrawals, fund transfers, bill payments and micro-insurance and other finan....