TaxTMI 
TaxTMI 
2025 (4) TMI 2095
X X X X Extracts X X X X
X X X X Extracts X X X X
....ment to be made by the AO. 2. The following grounds of appeals have been taken by the assessee:- "1. That the Ld. PCIT, Panchkula has erred in assuming the jurisdiction u/s 263 and holding the same as erroneous and prejudicial to the interest of revenue and cancelling the assessment already framed u/s 143(3) vide, order, dated 29.12.2019. 2. That the Ld. PCIT has also erred in not appreciating that the Assessing Officer, while framing the original assessment had made requisite enquiries on the issue of cash deposits in the bank account and on account of secured and unsecured loans and had taken a possible view and, thus, setting aside the assessment to the file of Assessing Officer again is devoid of any valid reasoning....
X X X X Extracts X X X X
X X X X Extracts X X X X
....appellate proceedings have been considered." 3. At the outset, the Ld. Counsel of the assessee stated that ground No.5 is not being pressed and the same therefore, may be treated as withdrawn. Regarding ground of appeals, it was argued by the Ld. Counsel of the assessee that the assessee is in the business of telecommunication and purchase and sale of Mobile accessories. The business of 'E-Wallet', 'Recharge Coupon' and 'e-recharge coupons' was started mainly during the year under consideration. 3.1 It was further submitted that the assessee is only earning commission @ .25% to .30% and on e-.money transfers and 1.25% to 1.75 on 'recharge' of coupons. Such commission as earned have been disclosed in the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed before us a Paper Book-ll, in which, the copies of accounts of the 'Idea Cellular Ltd', 'Idea Money & Communication System'/ 'Idea Mobile Commerce Services Ltd'., 'Pranav Online Solution Pvt. Ltd.', 'Vishesh Info System Pvt. Ltd.'. in the books of assessee are placed. Copies of all bank accounts of the assessee, namely of, 'HDFC Bank',,' Axis Bank', Bank of Maharashtra, and Vijaya Bank had also been submitted. It proves that the payment is being remitted to such companies and commission is earned. Thus, it was argued that the bank accounts of the assessee are self-explanatory and the cash, which is deposited in the bank accounts of the assessee was on account of the transactions mad....
X X X X Extracts X X X X
X X X X Extracts X X X X
....to the Ld. PCIT by way of two replies, dated 04.03.2022 and 09.03.2022. Again, the same modus operandi was reiterated and copies of the agreements with the companies were also placed on record, from whom, the services of 'e-wallet' and 'e-recharge coupons' had been undertaken. 3.6 It was further submitted that the PCIT in the order passed u/s 263 has reproduced the replies as submitted during the course of proceedings before us. He stated that there are no signatures in some of the agreements, so furnished and thus, he has confused herself about the availability of cash, which have been deposited in the bank account by mentioning that since the sales of the assessee are only to the tune of Rs. 42,29,593/- of the Mobile Ac....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd which has been deposited in the bank accounts of the assessee for remitting to NBFC companies. 3.8 Lastly, it was argued vehemently that commission income as disclosed has not been doubted at all and such commission income is matching to TDS deducted during the year. Thus, both on the application of mind by the AO concerned and on merits of the case, it was argued that the order u/s 263 as passed by the Ld. PCIT deserves to be set aside as the Ld. PCIT has failed to appreciate the business model of the assessee, where the assessee is in the business of providing services to parties on account of e-wallet and e-recharging substantially. The assessee also relied upon the judgment of Jurisdictional Punjab & Haryana High Court in the case....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f agreements with NBFC companies have also been filed. The Ld. PCIT has not been able to dispute the commission earned by the assessee on such services being provided on account of e-wallet and on recharge coupons. It was substantially new business during the year under consideration and thus there was deposit of cash, which was received from different retailors of the assessee to whom, the services of e-wallet and recharge were provided with the help of NBFC companies. 5.1 We have also gone through the copies of the bank accounts of the assessee and copies of accounts of NBFC Companies, as placed in the Paper Book. We find that substantial sum of money has been transferred through banking channels out of the cash deposits in the assesse....