2024 (8) TMI 1757

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....n dealing the addition made by the AO amounting to Rs. 3,34,62,664/- u/s 69A of the income Tax Act, 1961. ii) The Ld. CIT (A) has erred in allowing the appeal of the assessee on the ground of total turnover whereas the addition was made on account of difference in deposits made in the Bank accounts which the assessee failed to explain during assessment as well as during appellate proceedings. iii) It is prayed that the order of the Ld. CIT (A) be cancelled and that of the assessing officer may be restored. iv) The appellant craves leave to add or amend any grounds of appeal before the appeal is heard or is disposed off. 2.1 Brief facts, as submitted by the ld. Counsel for the Assessee, are as under:- 1....

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.... in the case of the Assessee. Assessee's arguments 7. At the outset it was submitted that there was no difference in the total turnover as per the insight portal of the department and the turnover if calculated from the bank statements as maintained by the Assessee. 8. The total turnover of the Assessee as per all the bank statements from 01.04.2017 to 31.03.2018 are as follows: Name of the Bank Amount deposited (cash/cheques/transfers) Yes Bank 148843027.13 Axis Bank 264902443.00 Union Bank 478 1126916.83 Union Bank 727 12180759.86 Total 427053146.82 9. The AO had alleged that there is difference in turnover with regard to the deposits in the bank account maintained with Axis Bank. The inform....

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.... d) The addition is thus factually incorrect as made by the AO. e) The addition is legally also not sustainable. Section 69A of the Act could not have been invoked in this case. f) The appellant has stated that all credit/cash transactions pertained to his business activity of prepaid and data card of different telecom companies and the AO failed to establish a case that some of the transactions in the bank account with Axis bank were not regular receipts. g) The AO merely relied upon the difference between insight data and information gathered from the assessee instead of making any independent verification of facts. h) Thus, the addition was deleted by the CIT(A) both on factual and/legal grounds. 1....