Akash Anand Puri Vs ITO (ITAT Nagpur)
ITAT Nagpur held that the addition made under section 69A of the Income Tax Act towards unexplained money is liable to be quashed since the nature and source of deposit is clearly established.
Facts- The assessee was engaged in the business of distribution of Videophone Sim Card and easy recharge vouchers. AO received information from the Income Tax Department that the assessee has deposited cash amounting to Rs. 1,53,31,060, in current account. The case was re–opened u/s. 147 of the Income Tax Act, 1961.
Since the assessee failed to respond to the notices u/s. 142(1) of the Act, AO had no alternate but to pass ex-parte order by invoking provisions of section 144 of the Act and on the basis material available on record. Accordingly, AO made addition of Rs. 1,53,31,060, on account of unexplained money.
CIT(A) NFAC dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- CIT(A), NFAC, has not considered the fact as well as documents submitted by the assessee and has not pointed out any defect in the documents furnished by the assessee and made addition of entire sale as business income and confirmed the addition made by the Assessing Officer at ₹ 1,53,31,937, without considering the same being business turnover and consequent abatement of payment were made to Vodafone Mobile Services Limited for purchase of Sim Card and vouchers. He only harped upon about the non–compliance of various notices.
