9911796707
TMI Blog2024 (4) TMI 932X X X X Extracts X X X X X X X X Extracts X X X X ..... ed out from the records is that in this case, return of income was e- filed u/s 139(1) of the Income-tax Act 1961 on 01.06.2017, declaring total income of Rs 4,13,210/- During the year under consideration the assessee is running an E-Mitra Kiosk and providing service of deposit utility bill of various consumers to the Government Department like water bill and electricity bills. As per computation of income filed the assessee has declared income from business and profession of Rs. 4,35,256/- u/s. 44AD on total turnover of Rs. 9,96,782/-. The case of the assessee was selected for the examination of the issue of cash deposits during the demonetization period. The case was selected for manual scrutiny after obtaining the prior approval of Pr. CIT-3, Jaipur. Accordingly, notice u/s 143(2) of the income-tax Act, 1961 was on-line issued on 29.09.2018 on ITBA Portal which was served upon the assessee through E-Mail or Regd. Post. Notice u/s 142(1) was on-line issued on 05.06.2019 fixing the case for hearing on 12.06.2019 but compliance of the same was not made. 3.1 As regards the issue of cash deposited in the bank account during the demonetization period the assessee submitted that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Apropos to the grounds so raised the relevant finding of the ld. CIT(A) is reiterated here in below: "4.2 I have gone through carefully the assessment order and the submission of the appellant on this issue of cash deposit during the demonetization period. The appellant is a service provider for facilitating the general public to make payment of various government dues. The appellant is an E-Mitra operator appointed by the Rajasthan State Government to provide facility to the citizen to deposit various government taxes, telephone, electricity, water bills and other services authorized by the government. He collects the money from public on account of different bills and deposits it in his bank account thereafter transfers it to the government account through Aksh Optifibre (Nodal Agency). During the period of demonetization, the appellant has deposited Rs. 33,64,279/- being the money collected from public. The appellant has maintained complete details of the depositors such as their name purpose of collection of money alongwith the amount of collection. The Id. AO has accepted the amount of Rs. 33,64,279/- cash deposited as explained and justified. 4.3. The appellant is also au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es payments and interested in buying train tickets, hotel booking and transferring money from one location to other (which is prevalent particularly in people of Bihar who are employed in various houses and industries in Jaipur and who have to transfer money to their family persons at Bihar and the position of money transfer was very different from situation persisting at present) etc. which is deposited by him in his bank account and is transferred to various portals for above said purpose and in return the assessee earns commission from respective portal and from the person also. For the year under consideration the appellant had filed his ITR on 01.06.2017 vide e filing acknowledgement no. 788438330010617 declaring a taxable income of Rs. 4,13,210/-. The case was selected for scrutiny on the basis of information about cash deposit of Rs. 56,01,800/- in his bank account during the demonetization period. Accordingly notice u/s 143(2) of the Income Tax Act, 1961 was issued on 29.09.2018 and further notices u/s 142(1) were issued which were complied with. Order of the ld. AO : During the proceedings the ld. AO verified that the bifurcation of above stated cash deposit of Rs. 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rent from TDS made by above named Novapay that during the months of December 2016 to March 2017 the quantum of commission has recorded growth as compared to commissions in the months of April, 16 to November, 2016. The bank statements of the assessee evidences that the amount deposited by the assessee in the bank accounts during these two months of demonetization was transferred to other accounts as is apparent from the transactions appearing therein. An overall glance on enclosed documents evidences following facts :- 1. The assessee was engaged into the business of working as agent for depositing utility bills and other services such as Hotel Booking, Ticket Booking, Money transfer, mobile recharge etc. 2. It can not be presumed that the money transferred on various portals for above said purpose were incurred for personal use as in such situation TDS deductions would not have been there. 3. The assessee has declared his income from commission at 43.66% of gross commission earned by him for Rs. 9,96,782, whereas TDS had been deducted only on Rs. 3.97 Lacs which also evidences that the assessee was honest in declaring his income. 4. During this aforesaid period of two ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for above stated purposes. You are kindly requested to allow the appeal and oblige." 6. In this appeal the ld. AR of the assessee submitted a detailed paper book containing the records against the contention so raised in the written submission and the index of the documents submitted reads as under : Paper Book Index SN DESCRIPTION PAGE NO. 1. ITR V and Computation of Income of the appellant 1-5 2. Form 26AS 6-9 3. Summary of Form 26AS 10 4. Bank Statement with Bank of Baroda 11-13 5. Bank Statement with SBI - 11798 (for two months) 14-24 6. Bank Statement with SBI - 34093 (for two months) 25-92 7. Cash deposit in Bank Accounts summary 93 8. Agreement with Nova Pay 94-95 9. Transaction statement of Novapay for 16.12.16 to 31.12.16 96-99 10. Summary of transactions with Novapay 100 11. Partywise amount transfer details through Novapay 101 7. The ld. AR of the assessee in addition to the written submission vehemently argued that the when the activity of the assessee trust is considered and based on that even the commission income earned is taxed there is no justification to add the cash deposited into the bank account. The ld. AR of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee failed to provide details about the persons whose money was deposited and for what purpose it was deposited and hence he taxed this sum of Rs. 22,37,511/- as unexplained credit of the assessee u/s 69A. The ld. CIT(A) has confirmed the view of the ld. AO and stated that the ledger account submitted by the assessee consist of debit and credit entries but the purpose of money so received and the details thereof were not submitted therefore, he confirmed the order of the ld. AO. The assessee in the present appeal submitted that in support of the receipt of the cash he has placed on record the Form 26AS, (APB 6-9), Summary of form 26AS (APB 10), Transaction statement with Novapay Solutions (APB 96-99), Agreement with Novapay Solutions (APB 94-95) and Bank account statements of the assessee (APB 11-92). From all these evidences, already on record it clear that the money so taxed which is commission is based on the cash deposited into the bank account and on the account of availing the portal services by the various parties. The deposited of the cash into the bank account for SBN was only for Rs. 27,500/- and there is no doubt of the source of the same and for Rs. 22,37,511/- the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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