TaxTMI 
TaxTMI 
2025 (3) TMI 1876
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....or the assessment years 2017-18. Through the aforesaid appeal the assessee has challenged order u/s 250 dated 05.07.2024 passed by NFAC, Delhi. 2. GROUNDS OF APPEAL 1. For that the order of the Commissioner of Income Tax (Appeals) [CIT(A)] is contrary to law, facts, and circumstances of the case to the extent prejudicial to the interest of the appellant and at any rate is opposed to the principles of equity, natural justice, and fair play. 2. For that the Ld. CIT(A) is not justified in dismissing the appeal of the appellant without adjudication on the merits of the case. 3. For that the Ld. CIT(A) erred in not accepting the genuine reasons stated by the appellant for not being able to file the appeal within the....
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....es are carried out in cash and the same has been deposited into his bank account. The assessee had not filed his return of income for the A.Y.2017-18. As per the information available with the department, the assessee had deposited a sum of Rs. 11,94,500/- by cash during the demonetization period and hence issued notices to file the return of income. Since the assessee has not responded to the notices, the AO obtained the information from the Tamil Nadu Mercantile Bank and found that the assessee has credits to the tune of Rs. 52,44,736/- in his bank account during the impugned assessment year. Despite issue of notices providing opportunities of being heard, the assessee has neither filed return of income nor furnished any document in suppo....
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....ts of Rs. 11,94,500/- made during the demonetization period is not reasonable, and hence prayed for reducing the estimated profit. The assessee also stated that relying on various decisions of this tribunal, collection from customer's deposit of SBNs during the demonetization period is not prohibited. The ld.CIT(A) after considering the Profit and loss account and other submissions made in Form 35, and taking the details of earlier years and subsequent years' return of income of the assessee, passed an order dated 05.07.2024 and confirms the addition made by the AO on account of unexplained money to the tune of Rs. 11,94,500/- u/s.69A of the Act and 10% of the other deposits of Rs. 40,50,236/- under the head income from business. Aggriev....
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....s activities in cash only. During the impugned assessment year, the assessee has deposited Rs. 11,94,500/- into his bank account in SBNs along with cash and bank transfers to the tune of Rs. 40,50,236/-. 9. We find that the AO has considered deposits other than the cash deposits made during the demonetization period as business receipts of the assessee and estimated the profit at 10% of the same and brought to tax. However, the AO has not proved that the deposits of SBNs are from any other sources of income of the assessee for taxing the same u/s. 69A of the Act. However, as relied by the Ld. Counsel for the assessee that there is no prohibition to collect the SBNs during the demonetization period as held in the following cases by this t....