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Judgment
This assessee’s appeal for assessment year 2018-19, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2025-26/1084214833(1), dated 30.12.2025, involving proceedings under section 147 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties. Case file perused.
The assessee raises the following sole substantive ground:
“On the facts and in law, the learned CIT(A) erred in upholding the addition made by the learned AO by treating cash withdrawn from the appellant's own bank account as unexplained expenditure under section 69C. The appellant acted only as a transfer agent for Weizmann Forex Ltd. (now EbixCash World Money India Ltd.) and Instant Global Money Transfer Pvt. Ltd., earning commission of 231,521/- as per Form 26AS. The withdrawals were pass-through payments to beneficiaries and not turnover. In the absence of any independent business activity, the sum of ₹1,12,02,258/- cannot be treated as turnover under section 44AD.”
Suffice to say, it has come on record that both the learned lower authorities have assessed the assessee for his withdrawals than deposits made in the concerned bank account on the ground that he had all along failed to submit a reasonable explanation thereon during assessment as well as in the lower appellate proceedings. Learned counsel at this stage invites the tribunal’s attention to page 44 in the paper-book wherein he has placed his foreign exchange agent licence granted way back on 20.10.2009 by the “Western Union Money Transfer” latter stated to be re-designated as “M/s. Weizmann Forex Ltd.” (now “EbixCash World Money India Ltd.”). I, therefore, see no merit in both the learned lower authorities’ action assessing the assessee’s withdrawals thereby making section 69C addition, which stands deleted in very terms.
This assessee’s appeal is allowed.