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

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.

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 Riyaj Harun Shaikh 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.

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.

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 Riyaj Harun Shaikh 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.

In the result, appeal of the assessee is allowed for statistical purposes.