9911796707
TMI Blog2024 (7) TMI 835X X X X Extracts X X X X X X X X Extracts X X X X ..... lso submits that amount credited on 23.05.2017 for Rs. 14.33 Lacs and Rs. 4.22 Lacs credited on 30.05.2017 has not been considered by Ld. AO. However, we find that no supporting evidences could be adduced by the assessee, in that regard. In such a case, the determination of business income, in our considered opinion, could not be faulted with. However, at the same time, it could be noted that the aggregate credit of Rs. 18.55 Lacs represent business transaction which has already been considered while estimating the business income of the assessee. Even otherwise the business income has been computed on the presumption that entire purchases were sold during the year. Therefore, separate addition of Rs. 18.55 Lacs stand deleted whereas the es ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dent : Shri Nilay Baran Som (CIT) - Ld. DR ORDER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2018-19 arises out of final assessment order of learned Assessing Officer (AO) passed u/s 147 r.w.s. 144C(13) pursuant to the directions of Ld. Dispute Resolution Panel-2, Bengaluru-3 (DRP) u/s 144C(5) dated 15.12.2023. The sole grievance of the assessee is confirmation of certain addition of cash deposits and unexplained investments. The assessee being non-resident individual transacted in Bitcoins. The grounds of appeal read as under: - 1. The impugned order is bad and erroneous in law. 2. Non-mentioning of the status of the appellant in the order u/s. 148A(d) dated 31/03/2022 and in the draft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice u/s 148A(b) was issued on 24.03.2022 on the ground that the assessee transacted in Bitcoins for Rs. 18.60 Lacs. In the absence of any reply, an order was passed u/s 148A(d) on 31.03.2022 which was followed by statutory notice u/s 148 on same date. The assessee filed return and admitted income of Rs. 2.40 Lacs. The same was proposed to be determined at Rs. 41.67 Lacs in draft assessment order dated 29.03.2023. In this order, Ld. AO proposed addition of cash deposit for Rs. 16.63 Lacs, made addition of unexplained investment u/s 69 for Rs. 2.42 Lacs Rs. 18.55 Lacs respectively and also determined business income of Rs. 1.66 Lacs. 3.2 In the return, the assessee reflected sale of Bitcoins for Rs. 19.05 Lacs and computed business income of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... engaged in arbitrage activity on peer-topeer trading platform for cash with a minimum price margin of 1-3%. On 11.05.2017, trade was made with multiple member of Lbtc Portal and cash was consolidated and deposited in the bank account using the handler nbkarthi (userid). The list of user handlers / buyers with trade reference Id was also submitted. However, the assessee could not retrieve old trade receipts. Therefore, Ld. AO treated the same as unexplained money u/s 69A. There was another deposit of Rs. 1.63 Lacs which were similar treated. The assessee maintained that these deposits were recorded in bank account and therefore invocation of Sec.69A was not justified. 3.6 The Ld. DRP, vide directions dated 15-12-2023, upheld the action of Ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition of opening stock for Rs. 2.42 Lacs is not warranted. The same stand deleted. The business income so computed by Ld. AO would be subjected to normal rate of taxes. 5. The cash deposits represent deposit of Rs. 15 Lacs Rs. 0.63 Lacs made by the assessee on 11.05.2017 12.05.2017 respectively. The assessee has explained that he was engaged in arbitrage activity on peer-to-peer trading platform for cash with a minimum price margin of 1- 3%. On 11.05.2017, trade was made with multiple member of Lbtc Portal and cash was consolidated and deposited in the bank account using the handler nbkarthi (userid). The list of user handlers / buyers with trade reference Id was also submitted. However, Ld. AO rejected the aforesaid claim in the absence of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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