2026 (9) TMI 43

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.... has raised the following grounds of appeal: "1. On the facts and in the circumstances of the case and in law, the order passed by the AO, NFAC, u/s. 147 r.w.s 144B of the IT Act, 1961 dt. 11.02.2025, as confirmed by the Ld. CIT(A), NFAC, u/s. 250 of the Act vide order dt. 30.01.2026, is contrary to the facts on record and the provisions of law and is liable to be set aside. 2. The Ld. CIT(A) ought to have held that the very invocation of section 69A of the IT Act is unsustainable in law, as the deposits in the bank account were recorded in the books of account and formed part of the gross receipts disclosed in the return of income. Therefore, invoking section 69A is contrary to the statutory mandate and liable to be delet....

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.... said society. 7. The learned CIT(A) erred in holding that disclosure of educational receipts under the head "Income from Other Sources" instead of "Profits and Gains of Business or Profession" justified invocation of section 69A or alleged non-compliance with section 44AB. The head of income is irrelevant for the purpose of section 69A when the receipts were duly recorded and offered to tax, and in any event, the provisions of section 44AB were not attracted in the facts of the case. 8. For these and other reasons that have to be urged at the time of hearing of the case the assessee prays that the addition made by the assessing officer and sustained by Ld. CIT(A) are to be deleted in the interest of Justice." 3. Brief ....

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....ucation Society" and the amount of fees collected by the Society has been deposited into her personal bank account. As an Executive Member of the Society, the income generated from the Society activities should typically be deposited directly into the society's bank account, as the society is a separate legal entity. However, the assessee has deposited the fees collection into her personal bank account and claimed that the sources is out of running the pre-school under the name and style of "Kids Altelier", therefore, rejected the explanation of the assessee and made additions of Rs. 28,47,400/-, being difference amount of Rs. 31,64,000/- fees collections claimed by the assessee and income already admitted amounting to Rs. 3,16,600/- under ....

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....ore the Tribunal. 6. The Learned Counsel for the assessee, Shri C.Subrahmanyam, CA, submitted that, the Ld. CIT(A) erred in sustaining the additions without considering the explanation of the assessee along with supporting evidences, where the assessee has filed various details to prove running of the pre-school and fees collections which is the source for cash deposits into bank account. The assessee had also filed various evidences for expenditures like salary, rent and other expenses by filing rent agreements, salary details etc. The Ld. CIT(A) without appreciating relevant evidences, simply sustained the additions made by the Ld.AO. Therefore, he submitted that the additions made by the Ld.AO should be deleted. 7. The Learned Seni....