TaxTMI 
TaxTMI 
2026 (6) TMI 91
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....er 04.07.2025. The impugned order emanated from the order of the Ld. Income Tax Officer, Ward 4(2), Thane order passed under section 143(3) of the Act date of order 25.12.2019. 2. The brief facts of the case are that the assessee is an individual capacity filed the return and deriving income from retail business of mobile and its accessories and besides this he was also earning commission income from recharging of mobile and money transfer. The assessee filed the return by declaring total income of Rs. 3,67,810/-. The return was selected for scrutiny under CASS to verify the source of cash deposits during the demonitization period. In assessment proceeding, the assessee submitted the computation of income with copy of Form No. 26AS, copy....
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....been placed on record. The Ld. AR contended that on guidelines of the Reserve Bank of India, the assessee is eligible for receiving the cash which was duly deposited in the bank and finally from his wallet in M-Pesa. The amount was paid to the specified entities as directed by the customer. So, there is proper link related to the payment of this customer. The commission was received related to the cash deposits which are duly reflected in the Form No. 26AS. So, the assessee is not at all the beneficiary of any cash deposit except the commission earned from these transactions. 4. The Ld. AR contended that the similar issue is adjudicated by The Coordinate Bench of ITAT, Mumbai in case of Suraj Somaru Varma Vs. ITBA ITA No. 1776/Mum/2025 d....
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....ember 2016 and from there to respective customers account on 11th, 12th and 13th November 2016. We therefore find that the assessee has put forward the requisite explanation that the money so received has been received from his customers in regular course of his money transfer business and is part of total cash collection and deposits of Rs 50,11,900, the particulars of the customers and the money so collected has been duly documented and submitted for necessary verification, that the money has been deposited on the very next date of collection and thereafter, on the next date, the money has been transferred to Vodafone M-Pesa account. Considering the explanation and documentation so placed on record, we see no reason but to accept the expl....
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....ather, he accepted the commission income declared by assessee, which itself arises from the transactions in the same bank. Once the assessee has produced regular books of account, cash flow statement and bank statement corroborating various entries and where the department has not found the books to be unreliable or fabricated, these remains no basis for making separate addition of the cash, which was available as per the books of the assessee. Accordingly, the addition of Rs. 6,25,000/-u/s. 69A of the Act is deleted." 6. The Ld. DR argued and stated that the assessee was unable to bring any evidence in support of collection of cash amount to Rs. 32,22,775/-. The Ld. AO had correctly observed that the assessee has failed to submit all th....
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....8.09.2010 and circular dated 02.09.2013 as well as the agency agreement entered into Vodafone M-Pesa Limited whereby the assessee was authorized to act as a business correspondence agent/ REs vide agreement dated 18.04.2016 (APB pages 123- 145). It was further submitted that as per the RBI circular dated 08.11.2016, the assessee being a business correspondence agent and working as REs and was authorized to exchange Specified Bank Notes during the period of demonetization and in pursuance of such authority the assessee accepted cash from the customer and deposited the same into his account on following dates and it was accordingly submitted that such activity of accepting the cash. Therefore, remitting the money to the respective bank accoun....