Manoj Kumar Vs ITO (ITAT Delhi)
Commission Agent’s Cash Flow Needs Verification- ₹3.94 Cr Cash Deposit Addition Remanded: ITAT Delhi Gives Assessee One More Chance
Manoj Kumar, engaged in business of mobile recharge coupons, filed appeal against NFAC order dated 03.11.2022 arising from assessment u/s 143(3) for AY 2017-18. AO noted cash deposits of ₹3,94,54,700 in Assessee’s Yes Bank & ICICI Bank accounts during demonetisation period. Assessee explained that he worked on commission basis for telecom distributors (Ezdhan, Vishesh Infosystem), collecting cash from local distributors & depositing it into bank before remitting to master distributor. However, AO held that no agreements, cash flow statement, or reconciliation of deposits with books were furnished. He treated the deposits as unexplained cash u/s 69A r.w.s. 115BBE & added full amount.
CIT(A) upheld addition noting lack of documentary evidence, correlation of deposits with books, & mismatch in ledger of Bhagya Enterprises.
Before Tribunal, Assessee produced further explanation & sought opportunity to substantiate claim. Tribunal found that material facts regarding cash flow & reconciliation remained unverified. In interest of justice, it remitted matter back to CIT(A) with directions to obtain remand report from AO & allow Assessee opportunity to file supporting documents, including detailed cash flow. CIT(A) was directed to dispose of issue by reasoned order within 8 months.
