TaxTMI 
TaxTMI 
2026 (3) TMI 1019
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....'CIT(A)') for A.Y.2017-18 upholding the addition of Rs. 1,44,50,000/- in respect of cash deposits made in bank accounts as made by the appellant and not Mr. Rajaiwala during demonetization period as unexplained moneys u/s 69A r.w.s. 115BBE of the appellant is wholly illegal, unlawful and against the principles of natural justice. 1.2 The Ld. CIT(A) has grievously erred in law and or on facts in not considering fully and properly the explanations furnished and the evidence produced by the appellant. The Ld. CIT(A) has completely ignored the documents and evidence produced by the appellant to prove that the impugned cash deposit was not made by him but the same was a part of the fraud committed by Shri Rajaiwala with GST Auth....
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....lls for reduction. It is therefore prayed that the addition of Rs. 1,44,50,000/- made by the CIT(A) should be deleted." 3. The assessee is an individual and carrying out the business as agent of Indian Railway for ticket booking, air ticket booking and allied services like hotel booking in the name of New Nobel Tours and Travels. The assessee filed return of income for assessment year 2017-18 on 30-10-2017 declaring income at Rs. 5,04,200/-. The case of the assessee was selected for scrutiny. The statutory notices were issued to examine the source of cash deposits of Rs. 1,44,50,000/- made in bank accounts with HDFC bank, Kotak Mahindra bank and ICICI bank during demonetization period. The assessee filed details along with list ....
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....ed at Sr. No.70. The CIT(A) has also completely ignored the arrest memorandum issued by GST Authorities in case of Shri Rajaiwala and other criminal proceedings initiated against him. The CIT(A) has committed a grave error in holding that Shri Chirag Solanki was authorized to deposit cash in assessee's bank account No. 1318 with HDFC Bank. During the course of appellate proceedings, the hearing through video conference took place on 02.04.2025 during the course of hearing, the assessee was asked to furnish certain documents/evidence, in spite of the same already on record along with the submissions uploaded on IT Portal. Hence, in order to comply with the said direction, the Ld. A.R. submitted that the entire bone of contention of the a....
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....complaint). The modus operandi adopted by said Rajaiwala has been described in detail in para-4 of the complaint and para-5 contains the list of the parties through which the said modus operandi was carried out by him. Out of the list of 96 parties/entities, the name of the present assessee appears at sr.no.70 with the trade name of "New Noble Tours and Travels" and input credit passed on of Rs. 3.5 Cr. In other words, even GST authority have confirmed by para-5 of this complaint that said Rajaiwala had carried out the said fraudulent activities in the name of the present assessee and his trade name. The perusal of para-6 at page-13 of the complaint also mentioned, inter-alia that said Rajaiwala had floated, managed and operated several ent....
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....said Shri Rajaiwala did not belong to him. The assessee had also explained that looking to the nature and magnitude of the business carried on by the assessee - mainly Air & Railway Ticket booking, it was not possible to him such a huge business and that too without corresponding the invoices issued by Railway and Air Authority. The assessee has uploaded a detailed rejoinder to the remand report furnished by AO and denied various erroneous and unwarranted observations/averments made by AO in his report. Therefore, the same should not be relied upon. The AO has not made any further inquiry in this regard nor any material has been brought on record to disprove the explanation given by the assessee with evidence that the impugned cash deposits....
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.... assessee failed to explain the nature and source of cash deposited into his bank account. The ld. A.R. though pointed out that Tahir Rajaiwala was misusing the assessee's GST No but during the demonetization period, the assessee has deposited the amounts which was categorically collected from the various parties in respect of tours and travels business. But the assessee could not bring on record that the cash deposited in the bank were not that of assessee and the same was not at all demonstrated, as the cash in hand by the assessee after perusal of the details, filed before the Assessing Officer as well as before the CIT(A). The CIT(A) categorically mentioned in para 5.8 and para 5.9 that the assessee himself is depositing the cash which ....