9911796707
TMI Blog2023 (12) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... y into the assessee s (service provider or agent) account and later remits the same to the IDEA Cellular s account through ECS. It is also pertinent to note that the assessee being a service provider on behalf of IDEA Cellular is responsible for collection of moneys from the pre-paid and post-paid subscribers and the IDEA Cellular holding the position of Principal pays commission / incentives to its agents / service providers (assessee in the present case). Therefore, the assessee acted merely as an agent to the IDEA Cellular and during the demonetization period, the RBI as well as the Central Government have also approved for making payments towards pre-paid mobile top-up to a limit of Rs. 500/- for every top-up through their Notifications mentioned supra. Further, the Ld. AR has also demonstrated that the assessee remitted the collection of receipts to the IDEA Cellular Services through its books of account. Therefore, we can safely come to a conclusion that the deposit of cash on receipt from various persons for sale of pre-paid and post-paid recharge bookings is not the sales of the assessee nothing but the amount collected on behalf of IDEA Cellular. Considering all thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice, the assessee furnished information on 24/09/2019 wherein it was stated that the assessee firm is a service point for IDEA Cellular for collection of bills and also provide pre-paid and post-paid bookings. The assessee further submitted that it collects cash from the customers and the same is being deposited into the assessee s account and later the collected amount is being remitted to the IDEA Cellular through ECS. On perusal of the assessee s submissions, the Ld. AO opined that the explanation given by the assessee is not tenable since the assessee is not permitted to accept SBNs of the other persons, even from their customers, and deposit the same in to his bank accounts in exchange. In this regard the Ld. AO relied on the Notification given by the Central Government dated 8/11/2016. The Ld. AO further observed that the assessee is not one of the specified persons like carrying on business in petrol bunks, gas agencies etc., to receive SBNs against sales. Therefore, the Ld. AO treated the SBNs deposited during the demonetization period amounted to Rs. 10,14,000/- as unexplained money U/s. 69A of the Act for taxation as provided U/s. 115BBE of the Act. Further, the Ld. AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted that the sources of the cash deposits are partly out of closing cash balance as on 8/11/2016 and partly out of the receipts during the demonetization period. The Ld. AR further submitted that the RBI has issued various Notifications from time to time viz., 3408, 3416, 3448 giving the list of persons including for making payments towards pre-paid mobile top-up who can accept old SBNs till 15th December, 2016. In support of his submission, the Ld. AR drawn our attention to the document showing the caption of Transactions for which payment in old Rs. 500/- Notes valid till 15/12/2016 . The Ld. AR further submitted that in continuation of various Notifications issued by the RBI as well as the Central Government, the Ministry of Finance (Department of Economic Affairs), issued a Notification dated 24th December, 2016 [S.O. 3544(E)] wherein it is clearly mentioned in para-2, column (u) that for making payment towards pre-paid mobile top-up up to a limit of Rs. 500/- for every top-up . He further submitted that the assessee firm is a service point for IDEA Cellular for collection of bills and also provide pre-paid and post-paid bookings. In this line of business, the assessee b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, the Ld. DR pleaded that the order of the Ld. CIT(A)-NFAC needs no interference. 6. We have heard both the parties and perused the material available on record and the orders of the Ld. Revenue Authorities. It is fact that the assessee has made deposits worth Rs. 10,14,000/- in its bank account with Central Bank of India. It is the case of the Ld. AO that the deposits were made by the assessee during the demonetization period with SBNs which is an unaccounted money under the guise of collection of bills and also providing pre-paid and post paid bookings and therefore the Ld. AO brought the deposits amounting to Rs. 10,14,000/- to tax and made an addition U/s. 69A r.w.s 115BBE of the Act under the head unexplained cash deposits. On appeal, the Ld. CIT (A)-NFAC dismissed the appeal of the assessee by holding that the onus is on the assessee to provide the satisfactory explanation with respect to the deposits made into its bank account and since the assessee had not discharged its onus, the action of the Ld. AO in making the addition U/s. 69A r.w.s 115BBE is sustained. Before us, it is the contention of the assessee that the sources for the alleged cash deposits are partly out o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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