TaxTMI 
TaxTMI 
2026 (8) TMI 381
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 2. The grounds raised by the assessee are as follows:- 1. The impugned assessment order u/s. 144 RWS 144B dated 12.03.2025 as well as the notice issued are bad in law and on facts of the case, for want of jurisdiction, barred by limitation, without proper approval or satisfaction and various other reasons and hence the same may kindly be quashed. 2. Rs. 10,90,100/-: The Id. CIT(A) has grossly erred in law as well as on the facts of the case in confirming the addition of Rs. 10,90,100/-made by the Id. AO on account payment made against the purchase via credit card as alleged unexplained money u/s. 69A. The Ld. AO and CIT(A) both have also erred in not considering the vital facts and material available on record in their....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eing adequately explained. The assessee was noted to have made payment of Rs. 10,90,100/-, towards credit card dues, the details of which find mention at page 7 of the assessment order. The assessee had explained the source of the same as withdrawals from his Bank Account in cash and had furnished copy of the Bank account to evidence the same. The AO was not satisfied with the assessee's explanation, stating that, assessee had not correlated the withdrawals made in cash from the Bank account with the cash payments made. 4. The matter was carried in appeal before Ld. CIT(A), who confirmed the order of the AO, reiterating the findings of the AO, that the assessee had failed to file reconciliation of the cash withdrawals, and cash payment f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....re issued requiring the appellant to explain the source of such cash payments. The appellant made partial compliance but failed to furnish complete details and reconciliation. After considering the submissions on record, the Assessing Officer completed the assessment u/s. 144 r.w.s. 144B on 12.03.2025 at an assessed income of Rs. 15,84,860/-, making an addition of Rs. 10,90,100/- u/s. 69A of the Act, treating the cash payments towards credit cards as unexplained money. Aggrieved by the above addition, the appellant has filed the present appeal raising grounds that the Assessing Officer erred in not considering cash withdrawals from SBI Bank amounting to Rs. 28,02,000/- which were allegedly available for making the credit card payme....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ant has claimed to be a contractor filing return u/s. 44AD of the Act. However, apart from making this assertion in the return of income, no document has been produced to substantiate that any such business was actually carried on. No contract agreement, work order, bills raised, TDS certificates, or confirmations from parties have been filed. Even the alleged withdrawals from the bank do not bear any demonstrable connection with contract receipts. Thus, the claim of being a contractor carrying on business under section 44AD is not supported by any contemporaneous evidence. In the absence of such documents, the plea that the impugned cash payments emanated from business withdrawals remains unsubstantiated and devoid of merit. The a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ual utilization. No document has been furnished to show that he was carrying on any business as claimed, and therefore the plea of availability of business receipts also falls to the ground. In these circumstances, the Assessing Officer was fully justified in treating the amount as unexplained money and bringing it to tax u/s. 69A of the Act. Accordingly, the addition of Rs. 10,90,100/- is upheld in full. 5. We have heard the rival contentions and have gone through the orders of the Authorities below. We do not find any merit in the addition made in the hands of the assessee on account of, the source of cash payment made for credit card dues, being not allegedly explained by the assessee amounting to Rs. 10,90,100/-. Admittedly, the asse....
X X X X Extracts X X X X
X X X X Extracts X X X X
....horities of the cash withdrawn having been utilised for some other purposes, it can be safely presumed that the cash withdrawals whenever made during the entire year, were utilised for payment of credit card dues by the assessee at any point during the year. It can be safely presumed, that the cash withdrawn was retained by the assessee as cash in hand and utilised for the payment of credit card dues. We find no need for direct correlation between the cash withdrawn used for paying off credit card dues. 7. Therefore, we have no hesitation in holding that, the source of cash payment for credit card dues by the assessee amounting to Rs. 10,90,100/- stand sufficiently explained by the assessee as from cash withdrawals made from his bank acc....