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TMI Blog2022 (11) TMI 358X X X X Extracts X X X X X X X X Extracts X X X X ..... nking, why would he get into a cumbersome mode of withdrawing cash from the bank account by physically going or sending a person to bank branch and then again go physically to the City Bank Branch to pay credit bills . This opinion of CIT(A) would have considered appropriate, in case AO had examined the cash book of the assessee and furnished specific remarks about the cash book. The power of CIT(A)is coterminous with that of AO, but an AO can do or his supposed to do, can be done by Ld. CIT(A) also. Being superior authority, his duty is to improve upon the assessment order passed by the AO considering the facts of the case and applicable law. Sec. 69C falls under income from other sources and in the category of deeming provision. Wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. The appellant preferred an appeal before the Commissioner of Income Tax where the order ofthe Assistant commissioner was further upheld. 5. The appellant is an individual of 49 years of age. The total income of the assessee earns consist of Business income and other sources. The assessee has made cash payment towards credit card due to the tune of Rs.9.72,500/- and the learned AO made addition treating this expenditure as unexplained expenditure U/s69C. Over the year assessee has been withdrawing certain amounts and keeping it aside to meet various contingencies. The cash collected over the years, already forming part of the withdrawals for each year amounted to Rs.17,49,571/- Below is the cash summary, Par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e offers no explanation about the source of such expenditure or part thereof, or the explanation, if any, offered by him is not, in the opinion of the [Assessing] Officer, satisfactory, the amount covered by such expenditure or part thereof, as the case may be, may be deemed to be the income of the assessee for such financial year. [Provided that, notwithstanding anything contained in any other provision of this Act, such unexplained expenditure which is deemed to be the income of the assessee shall not be allowed as a deduction under any head of income.] But as far as our case is concerned, assessee has already disclosed in the Books of Accounts/provided allthe relevant information to the relevant authorities pertaining to cash payme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer has erred directing addition of Rs. 9,72,500/- u/s 69C r. w. s 115BBE of the Income Tax Act, 1961. The order under appeal is not only bad in law and invalid, but also against the principles of natural law, equity and justice. The Appellant craves leave to amend, alter, add or delete all or any of the grounds of appeal. 2. Brief facts of the case are that the assessee is a proprietor of M/s. Shivom Logistics engaged in the business of goods transport agency services filed his return of income on 26.10.2017 declaring net taxable income at Rs. 5,34,10,630/-. The case was selected under CASS for limited scrutiny purposes to verify large cash payments made for credit card purchases. Notice u/s 142(1) along with qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 317380 it is apparent that the financial position of the assessee with reference to his turnover, net profit and income returned proves him to be an assessee in the category high net worth individual (HNI). It is further observed from the order of AO that whatever be the information required by AO assessee has submitted online. Looking at the turnover of the assessee it is also confirmed that assessee s case is covered under the compulsory tax audit provisions u/s 44AB. 4. Assessee has submitted before us a position of cash in hand in his business book of which he is a proprietor and personal books also as under. Particulars Amount in Rs. Opening balance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad examined the cash book of the assessee and furnished specific remarks about the cash book. 6. The power of Ld. CIT(A)is coterminous with that of AO, but an AO can do or his supposed to do, can be done by Ld. CIT(A) also. Being superior authority, his duty is to improve upon the assessment order passed by the AO considering the facts of the case and applicable law. Sec. 69C falls under income from other sources and in the category of deeming provision. 7. Without establishing conclusively, a section like 69C falling under the head Income from Other Sources and that is to, a deeming section, no adverse inference can be drawn against the assessee. We found the order of AO and Ld. CIT(A) are based on conjunction and surmises. 8. We ..... X X X X Extracts X X X X X X X X Extracts X X X X
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