TaxTMI 
TaxTMI 
2025 (3) TMI 2078
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....Centre [in short "NFAC"], Delhi, relating to assessment years 2018-2019 and 2019-2020, respectively. Since, identical issues are involved in these appeals, these appeals were heard together and are being disposed of by this single consolidated order for the sake of convenience and brevity. ITA.No.313/VIZ./2024 - A.Y. 2018-2019 : 2. Facts of the case, in brief, are that the assessee has not filed it's return of income for the assessment year 2018-2019 on or before the due date u/sec.139(1) of the Income Tax Act, 1961 [in short "the Act"]. The case was subsequently reopened u/sec.147 of the Act for the reasons recorded as per which specific information was flagged as per Risk Management Strategy formulated by the CBDT through Insight/IT....
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....pplicable on or after 01.04.2021. The assessee had also challenged the additions made by the Assessing Officer towards estimation of profit on cash credits. The learned CIT(A), after considering the relevant submissions of the assessee and also taken note of provisions of sec.151 of the Act held that, notice issued u/sec.148 of the Act with the approval of the CIT is bad in law and liable to be quashed because as per the provisions of sec.151, the Competent Authority is CCIT/PCCIT, but, not the CIT. Therefore, by following the decision of Hon'ble Delhi High Court in the case of Ashok Kumar Makhijav vs. Union of India [2024] 162 taxmann.com 514 (Del.), allowed the ground no.3 of the assessee. Further, the learned CIT(A) has upheld the additi....
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....rder of the learned CIT(A) and submitted that if we go by the grounds of appeal filed by the assessee before the Tribunal, there is no challenge to the legal issue. However, the assessee has only filed grounds which are against the additions sustained by the learned CIT(A). Therefore, the arguments of the assessee is not on the basis of the grounds of appeal and needs to be rejected. 7. We have heard both the parties, perused the material on record and the orders of the authorities below. We find that the learned CIT(A) in para 6.6 of the order dated 10.07.2024 held that notice issued u/sec.148 of the Act with the approval of the CIT appears to be wrong and consequently, the notice issued u/sec.148 of the Act and assessment order becomes....
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....ending inter alia, that the assessee-society dealing with 45 Mahila Svayam Seva Kendram Groups and the cash deposits in the bank are belongs to Groups' transactions only, but, not of any business income and there is no loss or profit in the transactions. However, the learned Assessing Officer, did not satisfied with the explanation of the assessee and has estimated the income of the assessee @ 8% i.e. Rs. 19,78,902/- out of the total cash deposits of Rs. 2,47,36,276/-, in absence of satisfactory explanation offered by the assessee by furnishing nature and source of cash deposits/credit entries in the bank account maintained with the Andhra Bank, vide order dated 16.03.2024 passed u/sec.147 r.w.s.144 r.w.s.144B of the Income Tax Act, 1961 [i....
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....estimation of profit @ 8% and accordingly submitted that the order of the learned CIT(A) should be upheld. 14. We have heard both the parties and considered the relevant arguments of the Learned Counsel for the Assessee and the Learned DR and the reasons given by the Assessing Officer and the learned CIT(A) in their respective orders in estimating the profit @ 8% on total credits in the bank account maintained with Andhra Bank. We find that the assessee-society is a mutually aided cooperative credit society and maintains regular books of accounts which are audited by an Accountant and, therefore, the Assessing Officer without assigning for any reasons, book results cannot be rejected. Although, the assessee could not file relevant financ....