TaxTMI 
TaxTMI 
2008 (2) TMI 477
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....er s. 68 of the Act. 4. Briefly stated the facts of the case are that the assessce continued to derive income as sub-broker from dealing in shares in his proprietorship concern called as M/s S.S. Securities. Survey under s. 133A was carried out in the business premises of the assessee on 6th Nov., 2000. Cash book was found to have been written upto 31st Oct., 2000. After taking into account the incomings and outgoings from 1st Nov., 2000 to 6th Nov., 2000, the cash balance as per cash book was worked out at Rs. 23,069 as against cash on physical verification found at Rs. 20,031, thereby leaving shortage in cash at Rs. 3,038. In the course of survey, computerized cash book was examined and cash transactions amounting to Rs. 19,51,980 were n....
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....onnection with the purchase and sales of shares. Since she was not assessed to tax and confirmation was without evidence of source of Income, the AO held the cash credit of Rs. 3,25,900 appearing in her account as unexplained and accordingly made addition under s. 68. Similar position is prevailing about the other customers, the detail of which is as under: ------------------------------------------------------------ Sl. Name of the person who purchased and sold Amount added No. through the assessee under s. 68 ------------------------------------------------------------ 1. Smt. Yashoda Maheshwari 3,25,900 2. Shri M.R. Bbandari 2,15,000 3. Shri Phool Chand 4.90,500 4. Shri Dinesh Kotwal 20,000 5. Shri Basudeo Tuwani 1,00,000 6. Sh....
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....h is reproduced as hereunder: ------------------------------------------------------------ Date Narration Debit Credit ------------------------------------------------------------ 05.04.2000 Being cash received from 60,000.00 Yashoda Maheshwari 08.04.2000 Sett No. BIA/2000001 74,177.00 11.04.2000 Being cash received from 50,000.00 Yashoda Maheshwari 15.04.2000 Sett No. BIA/2000002 8,000.00 17.04.2000 Being cash received from 1,35,000.00 Yashoda Maheshwari 19.04.2000 Being cash received from 20,000.00 Yashoda Maheshwari 21.04.2000 Being cash received from 15,000.00 Yashoda Maheshwari 22.04.2000 Sett No. BIA/2000003 2,22,524.00 20.05.2000 Sett No. BIA/2000002 4,200.00 27.05.2000 Being cash received from 17,000.00 Yas....
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....--------- Closing balance as on 31.3.2001 1831.91 Cr ------------------------------------------------------------ From the above account it can be seen that the assessee received cash on some occasions from her and on certain other occasions payment was received through cheques. There are transactions of settlement also, details of which follow at p. 119 onwards of the assessee's PB. For example, the first credit entry of Rs. 74,177 of settlement No. BIA/2000001 represents shares of Shyam Telecom, Reliance Petroleum purchased and sold by the assessee during the settlement period. As against the total sales made by the assessee in this settlement period at Rs. 4,38,383, the assessee purchased shares of Rs. 3,64,206 thereby leaving balanc....
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....ppreciate the fact that the AO had not disputed the transactions of purchase and sale of shares in respect of his customers. No only that, the assessee earned brokerage on such purchase and sale of shares which has been duly assessed by the Revenue, it is true that the onus probandi to prove the genuineness of the transaction is on the assessee. In this respect the facts have to be seen in totality. The doctrine of approbate and reprobate prohibits the Revenue authorities from blowing hot and cold in the same breath thereby accepting one part of the transaction and treating the other part as incorrect. When the account has been accepted, the transactions of purchase and sale of shares by the assessee on behalf of the assessee's customers ha....