IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND Ms. ASTHA CHANDRA, JUDICIAL MEMBER Assessment year : 2019-20 DCIT, Aurangabad Dhananjay Babruvan Kender Bunglow No.69, Yogeshwari Nagari Vs.

Ring Road, Ambajogai, Beed – 431517 PAN: BWLPK1384D (Appellant) (Respondent)

Assessee by : Shri Hari Krishan Department by : Shri Amol Khairnar, CIT-DR Date of hearing : 27-11-2025 Date of pronouncement : 09-12-2025

O R D E R

PER R.K. PANDA, VP:

This appeal filed by the Revenue is directed against the order dated 20.03.2024 of the Ld. CIT(A), Pune-12 relating to assessment year 2019-20.

2. Facts of the case, in brief, are that the assessee is an individual and government contractor. He receives contract for construction of roads and small bridges from Maharashtra Government. A survey action u/s 133A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) was initiated by the DDIT (Inv), Aurangabad at the office cum residential premises of the assessee at Bungalow No.69, Yogeshwari Nagari, Ring Road, Ambajogai on 14.02.2020. During the course of survey action, cash of Rs.19,31,860/- was found at the premises of the assessee. The assessee was requested to explain the source of cash.

However, the assessee stated that no books of account for the year under consideration has been maintained. Accordingly survey proceedings were converted into search action and a warrant of authorization u/s 132 of the Act was issued by the PDIT (Inv), Nagpur. Subsequently the Assessing Officer issued notice u/s 153A of the Act on 26.04.2021 which was duly served upon the assessee. However, no return of income was filed by the assessee in response to the said notice u/s 153A of the Act. Subsequently the Assessing Officer issued notice u/s 142(1) of the Act on 20.07.2021 along with a detailed questionnaire. However, no compliance was made by the assessee. Therefore, the Assessing Officer issued a show cause notice on 19.09.2021 requesting the assessee to comply with the above notice on 22.09.2021. It was also mentioned in the show cause notice that in case of non-compliance, the assessment will be completed ex- parte on the basis of material available on record. Since there was again no compliance from the side of the assessee and the assessment was getting barred by 30.09.2021, the Assessing Officer proceeded to complete the assessment on the basis of material available on record.

3. The Assessing Officer on perusal of the seized material found during the course of search noted that the assessee has made cash payments to various persons to the extent of Rs.79,82,000/-. In absence of any explanation given by the assessee regarding the source of the above payments along with any supporting evidence, the Assessing Officer, invoking the provisions of section 69C of the Act, made addition of the same.

4. The Assessing Officer further noted from pages 25 to 33 of item No.2 that it is a purchase deed of the agricultural land executed on 07.04.2018. The purchase consideration is Rs.8,56,000/-. In absence of any explanation given by the assessee regarding the source of the same, the Assessing Officer treated the amount of Rs.8,56,000/- as deemed income of the assessee u/s 69 of the Act.

5. Further, the Assessing Officer noted that during the course of search action at the business premises of the assessee various documents were found and seized. On perusal of pages 15 to 17 of item No.2 he observed that it is Form No.16A issued by the Executive Engineer, PWD, Ambajogai, Beed. As per Form No.16A the total payment for contract work to the extent of Rs.32,60,02,477/- was made during the year under consideration. However, from the return filed by the assessee he noted that the assessee has shown gross receipts to the extent of Rs.10,44,63,302/-. He further noted that the assessee has disclosed the TDS of Rs.65,64,172/- against the gross receipts of Rs.32,60,02,477/- but declared the receipts to the extent of Rs.10,44,63,