2026 (4) TMI 262

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.... of assessment order dated 20.12.2022 of Ld. Assessing Officer/Assessment Unit (hereinafter referred as "the AO") u/s 143(3) r.w.s 144B of the Act for Assessment Year 2020-21. 2. Brief facts of the case are that the assessee is a Private Ltd. Company, filed its return of income on 06.01.2022 declaring loss of Rs. 78,41,441/-. The case was selected for scrutiny under CASS for the reason of larger payments to people who had not filed their Income Tax Returns. Notice u/s 143(2) dated 28.06.2022, Notices u/s 142(1) dated 23.09.2022, 12.10.2022, 19.10.2022, 07.11.2022 and 16.11.2022 and show cause notice dated 01.12.2022 were issued to the assessee. The assessee made part compliance. On completion of proceedings, Ld. AO vide order dated 20.12....

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....f appeal." 4. Ld. Departmental Representative submitted that Ld. CIT(A) erred in deleting the addition of Rs. 20,00,000/- being payment to Sanjay Kumar without correctly appreciating the facts of the case. Ld. AO had given cogent reasons. Ld. CIT(A) erred in deleting addition of Rs. 2,68,17,674/- without appreciating that none of the vendors filed its reply and the assessee failed to establish the genuineness of the transactions/ actual receipt of service. Section 69C clearly was applicable as explanation offered by the assessee about the source of expenditure was not satisfactory. The findings of Ld. CIT(A) are factually incorrect. Ld. AO had given notices and made verifications. 5. Ld. Authorized Representative for respondent assess....

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.... to vendors' compliance, not assessee's source. (viii) CIT(A) (para 4.5.2 onwards) correctly held section 69C not applicable. (ix) Genuineness of Transactions Proved by the appellant by discharging its onus by providing: a. Copy of Agreement b. Copy of Ledger Account c. Copy of Invoices d. Confirmation from Vendor e. Purchase Order f. GSTR2A of the assessee g. TDS Returns h. Bank Payment details (x) It is not the case of the revenue that the expenses are incurred out of the Books so as to Attract 69C. (xi) AO has not produced any incriminating document to contradict the above but has only mechanically ignored the submissions o....