2026 (5) TMI 1761

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....iled his return of income for the above assessment year, declaring the total income at Rs. 5,29,980/-. The case was selected for scrutiny through CAAS on the ground "large cash deposit in bank account and assessee has also purchased/sold one or more properties during the year. During the course of assessment proceeding, assessee was asked to furnish the source of cash deposited in the bank account along with details of the purchases and sale of immovable properties. In response to the notice issued, the assessee has filed a detailed reply, explaining the nature and source of the deposits in the bank a/c with supporting evidences. The AO has accepted all the deposit amount with the bank as explained, but has made the addition for Rs. 53,66,7....

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....de by the Assessing Officer. 4. Aggrieved the above order, the assessee is in appeal before us raising following grounds:- "1. That, NFAC has erred on facts and in law while passing the order sustaining the addition AT Rs. 53,66,700/- as made by AO, order passed by NFAC dated 05.02.2026 is bad in law being passed not in accordance with provisions of sec 250(6) of Income Tax Act, same is liable to be set-a-side. 2. That, while sustaining the addition made, invoking the provisions of sec 69A of Income Tax Act, the NFAC has 2 comp completely ignored that provisions of sec 69A are not attracted in the case of assessee, no addition invoking of sec 69A could be made, addition made by AO, sustained by NFAC is liable to be dele....

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....hat in all the above return of income, assessee has consistently declared coaching and hostel income. During the year under consideration, he submitted that assessee has declared Rs. 5,40,200/- and he specifically brought to our notice page 14 of the paper book which is return of income filed by the assessee for the year under consideration. He submitted that assessee has received fees from students and advance fees in cash, the same was utilized to deposit during the year. Since, the assessee has consistently declared the income from coaching and hostel income and the gross fees received by the assessee as source of cash deposit in the bank which was denied by the lower authorities. He prayed that assessee has already brought on record sou....

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....d that Ld. DR submitted that assessee has declared the income from other sources, therefore, the assessee is not eligible to claim the relevant expenditure u/s 57 of the Act. After careful consideration it is already established that assessee is running a coaching centre along with hostel services to the students and assessee has received fees for the same in cash, the same was deposited in the bank and also withdrawn the cash to meet the relevant expenditure. We noticed that to the extent of Rs. 7,00,000/- and Rs. 30,14,700/- was accepted by the Assessing Officer on the basis of cash withdrawn by the assessee from the respective bank. However he denied the fees deposited by the assessee from the student as well as advance fees received by ....