RIYAJ HARUN SHAIKH,SANGLI V. INCOME TAX OFFICER, SANGLI

ITA 332/PUN/2025

AI Insights

The case involves Riyaj Harun Shaikh, who appealed against the order of the National Faceless Appeal Centre, Delhi, which confirmed the addition made by the Assessing Officer regarding cash deposits in his bank accounts. The assessee argued that the cash deposits were from his business of dealing in Mobile Recharge Coupons and only represented commission income. The Tribunal found that the assessee had not filed a return of income under section 139(1) of the Income-tax Act, 1961, and had deposited substantial cash in his bank accounts during the financial year 2013-14. The Tribunal noted that the assessee was engaged in the business of buying and selling recharge coupons and that only the commission income needed to be computed from this business. The Tribunal decided to restore the matter to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 396403 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANISH MEHTA
• Assessee Lawyers: PRAMOD S. SHINGTE
• Keywords: Set aside; Additional evidence

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.332/PUN/2025 Assessment Year : 2014-15 Riyaj Harun Shaikh, 510 RB, Shanti Sagar Colony, Near Vishnu Anna Fruit Market, Kolhapur Road, Sangli 416 416 Maharashtra PAN : BNAPS5465H Vs. ITO, Ward-3, Sangli Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal at the instance of assessee pertaining to A.Y. 2014-15 is directed against the order dated 27.01.2025 passed by National Faceless Appeal Centre, Delhi u/s.250 of the Income-tax Act, 1961 (in short ‘the Act’) arising out of the Assessment order dated 23.02.2022 passed u/s.147 r.w.s.144 r.w.s.144B of the Act. 2. At the outset, Ld. Counsel for the assessee submitted that the grounds raised on merit may be restored to the file of Jurisdictional Assessing Officer for denovo adjudication as the assessee is in the business of dealing in Mobile Recharge Coupons and sale proceeds deposited in cash in the two bank accounts during F.Y. 2013-14 and has only earned commission Appellant by : Shri Pramod S. Shingte Respondent by : Shri Manish Mehta Date of hearing : 13.05.2025 Date of pronouncement : 27.05.2025 ITA No.332/PUN/2025 Riyaj Harun Shaikh 2 income from such transaction but the AO had made the addition for the total cash deposit solely for the reason that assessee failed to make proper compliance before AO. He further submitted that all the details were filed before ld.CIT(A) to prove that the assessee has only earned commission income but ld.CIT(A) had not admitted the additional evidence and confirmed the addition made by the Assessing Officer. Reference was further made to the paper book containing 61 pages providing details of purchases and sales and copy of bank accounts exhibiting details of payments made through banking channel for the purchases of recharge coupons to the Network provider companies. 3. On the other hand, ld. Departmental Representative did not oppose to the request of Ld. Counsel for the assessee if the issues are restored to the file of Jurisdictional Assessing Officer for afresh adjudication. 4. We have heard the rival contentions and perused the record placed before us. We notice that the assessee is an individual and had not filed the return of income u/s.139(1) of the Act. Cash of Rs.1,47,30,980/- deposited during F.Y. 2013-14 in the two bank accounts held with IndusInd Bank Ltd., Mumbai and Axis Bank, Miraj. The contention of the assessee that alleged cash deposited for the amounts was collected from various customers from sale of recharge coupons and the payments being made for purchases to the Network Provider Companies is found to be correct. From perusal of the bank statements, we notice that the payments through banking channel have been made to Unitech Wireless Tamilnadu and Telewings Communications which provides recharge coupons. This fact remains uncontroverted by the Revenue authorities. Thus, the ITA No.332/PUN/2025 Riyaj Harun Shaikh 3 assessee is found to be engaged in the business of buying and selling of recharge coupons and only the element of commission income needs to be computed from the said business. The assessee has only filed profit and loss account. Under these given facts and circumstances, this is a fit case to be restored to the file of Learned Jurisdictional Assessing Officer (JAO) for carrying out denovo assessment proceedings. Ld. Jurisdictional Assessing Officer shall provide reasonable opportunity of hearing to the assessee and examine the requisite details of carrying business and commission income to be provided by the assessee and then decide in accordance with law. Impugned order is set aside and the grounds of appeal raised by the assessee are allowed for statistical purposes. 5. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced on this 27th day of May, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 27th May, 2025. Satish आदेश क\u0002 \u0003ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. \u000eयथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “B” ब\u0014च, पुणे / DR, ITAT, “B” Bench, Pune. 5. गाड\u0002 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "