DILIP GULAB RAUT,DHULE V. ADDL JCI A DELHI, NATIONAL FACELESS ASSESSMENT CENTRE

ITA 517/PUN/2025

AI Insights

The case involves an appeal by Dilip Gulab Raut against the order of the Additional/Joint Commissioner of Income Tax (Appeals)-6, Delhi, which confirmed the addition of Rs.2,21,000 under Section 69A of the Income Tax Act, 1961, as unexplained income. The assessee, acting as a Business Correspondent for Union Bank of India, was accused of depositing large sums of cash during the demonetization period, which were considered unexplained by the lower authorities. The Tribunal examined the bank statements and evidence provided, which showed that the deposits were part of legitimate business transactions, including transfers to the Vakrangee portal for prepaid recharges.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772194 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND RENGE
• Assessee Lawyers: VISHAL MAHALE
• Keywords: Principle of natural justice; TDS; FORM 26AS
• Section: 144; 133(6)

Judgement Text

" आयकरअपीलीयअिधकरण ”एस एम सी” \u0011ा यपीठ पुणे म\u0016। IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “SMC” :: PUNE BEFORE DR.DIPAK P. RIPOTE, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकरअपीलसं. / ITA No.517/PUN/2025 िनधा\u0005रणवष\u0005 / Assessment Year:2017-18 Dilip Gulab Raut, At Post Varsa Sitadipada Sakri, Maharashtra – 424306. Vs The Addl. JCI A DELHI. PAN: BQYPR3751E Appellant/ Assessee Respondent / Revenue Assessee by Shri Vishal Mahale –AR Revenue by Shri Arvind Renge – Addl.CIT(DR) Date of hearing 31/07/2025 Date of pronouncement 29/08/2025 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: This is an appeal filed by the assessee against the order of ld.Addl./Joint Commissioner of Income Tax(Appeal)-6, Delhi passed under section 250 of the Income Tax Act, 1961 dated 02.12.2024 for the A.Y.2017-18 emanating from the Assessment Order under section 144 of the Income Tax Act, 1961, dated 19.12.2019. The Assessee has raised the following grounds of appeal : “1. That the learned CIT (A) erred in confirming the addition of Rs.2,21,000 Under Section 69A ignoring that the amount was part of legitimate business transactions. Printed from counselvise.com ITA No.517/PUN/2025[A] 2 2. That the learned CIT(A) failed to consider the supporting documents proving that the deposits were used for prepaid recharges on the Vakrangee portal. 3. That the learned CIT(A) erred in considering Rs.9,000 as commission income based on an arbitrary calculation rather than actual commission received. 4. That the learned CIT(A) erred in treating Rs.8,277 as unexplained income despite clear records from Form 26AS showing actual commission earnings and TDS deductions. 5. That the additions made by the AO and upheld by the CIT(A) are excessive, arbitrary, and not based on proper appreciating of the facts. 6. That the assessment order passed u/s.144 is against the principles of natural justice as the appellant was not given proper opportunity to explain the nature of transactions. 7. That the appellant reserves the right to amend, modify, or add additional grounds at the time of hearing.” Submission of ld.AR : 2. The ld.AR for the Assessee filed paper book. Ld. AR submitted that the Assessee was a Business Correspondent Agent of the union Bank of India appointed by Vakranjee Ltd for providing Banking facility in Rural areas. The amount of cash deposited was belonging to Customers and it was collected on behalf of customers. Ld.AR took us through the Bank Statement to demonstrate that amount of Rs.2,21,000/- was deposited on 02/12/2016 and then on 30/12/2016 Rs.1,00,000/- was transferred by NEFT to Vakarangi which is seen in the Bank statement. Similarly there are other Transfers as seen in the statement. Therefore, Ld.AR pleaded that addition may be deleted. Ld.AR submitted that assessee is a Business Correspondent has been Printed from counselvise.com ITA No.517/PUN/2025[A] 3 accepted by the Assessing Officer as he has added Rs.9,000/- as Commission Income for opening New Accounts. Thus the fact that Assessee is a Business Correspondent has been accepted by the AO. Submission of ld.DR : 3. Ld.DR for the Revenue relied on the Order of the AO and CIT(A). Findings &Analysis : 4. We have heard both the parties and perused the records. In this case, Assessing Officer (AO) has noted that the Assessee had not filed Return of Income and there were cash deposits during demonetization. Hence the AO issued notices. Assessee failed to comply but the Assessing Officer u/s 133(6) of the Act obtained information from Union Bank of India. The Union Bank of India confirmed that assessee was their Business Correspondent. However, the AO noted that the Assessee has deposited Rs.2,21,000/- during demonetization in his savings account. Therefore, the AO made addition of Rs.2,21,000/- and also added Rs. 9,000/- as Commission. Ld.CIT(A) confirmed the addition. 5. We have studied the relevant saving bank statement. It is noted that on 2/12/2016 Rs.2,20,000/- was deposited then again on 2/12/2016 Rs.1,000/- was deposited in cash . Then there are transfers to Vakrangi on 30/12/2012 of Rs.1,00,000/-. Thus it is established that the amount which was deposited was transferred to Vakrangi. Also there are similar transfer of smaller amounts. In Printed from counselvise.com ITA No.517/PUN/2025[A] 4 these facts and circumstances of the case, we are convinced that assessee has explained the source of Rs.2,21,000/- deposited in cash. Hence, no addition is required. Accordingly, Assessing Officer is directed to delete the said addition. 6. In the result, appeal filed by the assessee is allowed. Order pronounced in the open Court on 29th August, 2025. Sd/- Sd/- VINAY BHAMORE Dr.DIPAK P. RIPOTE JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 29th August, 2025 Satish आदेशक\u000f\u0010ितिलिपअ\u0015ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. \u000eयथ / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. िवभागीय ितिनिध, आयकरअपीलीयअिधकरण, “एस एम सी” ब\u0017च, पुणे / DR, ITAT, “SMC” Bench, Pune. 6. गाड\u001aफ़ाइल / Guard File. आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकरअपीलीयअिधकरण, पुणे/ITAT, Pune Printed from counselvise.com "