MD QUAISAR PERWEZ,MARWA, BAISI vs. INCOME TAX OFFICER, WARD 3(1), PURNEA , PURNEA

The present appeal filed by the assessee is directed against the order dated 17.02.2025 passed by the NFAC, Delhi u/s 250 of the Income Tax Act, 1961 (the ‘Act’) for the assessment year 2017-18.

Brief facts of the case are that the assessee filed his return of income for the assessment year 2017–18 declaring a total income of ₹3,03,980. The case of the assessee was selected for limited scrutiny on issues relating to cash deposits, cash withdrawals, and cash deposits during the demonetisation period. Accordingly, notice under section 143(2) of the Income-tax Act, 1961 was issued to the assessee. During Md. Quaisar Perwez the course of assessment proceedings, the assessee submitted that he was operating as a Customer Service Point (CSP) of Central Bank of India. In support of his claim, the assessee furnished a copy of the agreement with M/s CSC e-Governance Services India Limited, which appointed him as a CSP operator. The assessee explained that he earned commission income on account of cash deposits and cash payments made on behalf of the bank and that he was providing basic banking facilities to local people who otherwise had limited access to banking services. The Assessing Officer noted that the reasons for selection of the case were: 1. Cash deposits during the demonetisation period, and 2. Cash withdrawals and cash deposits during the year.

On verification of the bank statements with Central Bank of India, the Assessing Officer observed cash deposits of ₹1,76,000 and ₹3,18,000 during the demonetisation period in two different bank accounts. Except for these amounts, no significant cash deposits were noticed during the rest of the financial year. However, the Assessing Officer was not satisfied with the explanation furnished by the assessee and, accordingly, made an addition of ₹3,18,000 to the returned income. Thus, the total income of the assessee was assessed at ₹6,21,980.