TaxTMI 
TaxTMI 
2026 (9) TMI 1723
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....t, 1961 (hereinafter referred to as 'the Act' in short) for Assessment Year 2017-18. 2. The assessee has raised following grounds of appeal:- "1. In law and on the facts and in the circumstances in the case of the appellant, the order u/s 250 of the Act passed by the Ld. CIT (A) is arbitrary, erroneous, contrary to the provisions of law and on facts. 2. In law and in the facts and circumstances of the Appellants case, the CIT(A) erred in sustaining the disallowance of Rs. 3,25,61,049/- under section 40A(3) related to cash withdrawn from the bank account when no such addition was required. 3. In law and in the facts and circumstances of the Appellants case, the Ld. CIT(A)erred in sustaining the disallowance unde....
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....ssee. The Assessing Officer, however, rejected the explanation on the ground that the loan amounts were received in the assessee's bank account and subsequently withdrawn and paid to the borrowers through self-cheques/cash. Holding that the entire transaction constituted business activity and that the cash payments attracted section 40A(3) of the Act, the Assessing Officer disallowed Rs. 3,25,61,049/- under the said provision and added the same to the income of the assessee. 4. Aggrieved by the order of the Assessing Officer, the assessee filed an appeal before the Ld. CIT(A). The Ld. CIT(A) sustained the disallowance holding that the assessee was actively involved in the disbursement of the loan amounts and had not satisfactorily establ....
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.... 8.1 The assessee in the present case is engaged in facilitating vehicle finance as a DSA/marketing agent for finance companies and earns commission/brokerage therefrom. In cases where the loan amount could not be directly credited to the borrower, the finance companies credited the sanctioned loan amount to the assessee's bank account, which was thereafter withdrawn and handed over to the concerned borrower. The assessee has not claimed the loan amount as expenditure or debited the same to its Profit & Loss Account, but has recognised only the commission/brokerage income. The details of borrowers, finance transactions, agreements, ledger accounts, payment advices and confirmations furnished by the assessee support the stated nature of the....
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.... the concerned borrowers. The assessee has not claimed these amounts as expenditure in its Profit & Loss Account. As per the material placed on record, the assessee has recognised only the commission/brokerage income arising from its finance facilitation activity. The assessee has also furnished details concerning the borrowers, the finance transactions., agreements with Kogta Finance, ledger account of Mahindra Finance & Kogta Finance and statement of account in the books of MMSFL, Payment advice and parties confirmation etc.. 8.4 The Assessing Officer and the Ld. CIT(A) have proceeded on the basis that since the funds were received in the assessee's bank account and thereafter paid to the borrowers, the payment constituted business exp....