2025 (9) TMI 1803

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....llenged the sustenance of addition of Rs. 9,16,000/- u/s. 69A of the Act. 2. At the outset, it is noted that there is a delay in filing the present appeal as pointed out by the Registry. In this regard, we have heard both the parties and perused the affidavit placed on record and we find that there was reasonable cause for the delay in filing the present appeal by the assessee due to lack of diligence on the part of Counsel who was appointed to assist the assessee in filing the present appeal. Therefore, considering the facts and circumstance of the case, the delay in filing the present appeal is hereby condoned and the appeal is admitted for adjudication. 3. Briefly the facts of the case are that the assessee filed his return of....

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....r dated 02.09.2013 as well as the agency agreement entered into the Vodafone MPesa Limited whereby the assessee was authorized to act as a business correspondence agent vide agreement dated 06.09.2016. It was further submitted that as per the RBI circular dated 08.11.2016, the assessee, being a business correspondence agent, was authorized to exchange specified bank notes during the period of demonetization and in pursuance of such authority, the assessee accepted cash from the customers and deposited the same into his account on the following date and it was accordingly submitted that such activity of accepting the cash and thereafter remitting the money to the respective bank accounts was strictly within the authorization granted to the a....

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....egular course of business of the assessee and are duly accounted for in the books of accounts. Further, reliance was placed on the decision in case of Salem Sree Ramavilas Chit Company (P) Ltd. Vs. Deputy Commissioner of Income Tax [2020] 114 taxmann.com 492 (Madras) as well as in case of Abhishek Nair Vs. Income Tax Officer [2023] 152 taxmann.com 500 (SuratTrib.), wherein the cash deposited were treated as normal transactions in due course of business and the additions made by the AO were deleted. 6. It was further submitted that the AO has made disproportionate addition vis-à-vis the actual earnings of commission income which was just limited to 0.5% of the transfer value. It was submitted that the assessee has received an incom....

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.... he has been authorized to collect and exchange specified bank notes during the period of demonetization as per the RBI circular dated 08.11.2016. It has been further explained that in pursuance of such authorisation, he has accepted cash from his customers and deposited the same into his account on the following date. To corroborate the said explanation, the assessee has submitted copy of agency agreement entered into the Vodafone M-Pesa Limited dated 06.09.2016 and copies of RBI circulars dated 28.09.2010, 02.09.2013 and 08.11.2016. In addition, the assessee has submitted a register which has been maintained by him containing particulars of the customers from whom the cash was received and has submitted that cash so received from the resp....