TaxTMI 
TaxTMI 
2012 (8) TMI 486
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....ates to confirmation of addition of Rs. 4,81,91,l421/- u/s. 68 of the Act. 4. Ground No. 3 is an alternative plea by which assessee has requested either estimate the commission income on such accommodation transactions or tax peak of the cash deposits. 5. Briefly stated the facts of the case are that for the year under consideration, the assessee filed return of income at Rs. 2,00,230/- on 30.10.2005. The return was selected for scrutiny assessment and accordingly statutory notices u/s. 143(2) and 142(1) were issued and served upon the assessee. During the course of assessment proceedings, the Assessing Officer confronted the assessee with the AIR data available according to which Rs. 53,50,300/- were deposited in cash in savings bank....
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....see as under: S. No. Name Bank & Branch A/c No. Total cash Deposit (Rs.) 1 Siddhi J. Mehta Axis Bank Borivali Branch S.B A/c No. 2066 53,50,300/- 2. Jayesh V. Mehta - Do - S.B A/c No.59787 1,75,90,800/- 3. Jash Jayesh Mehta - Do- S.B A/c No. 018010100233354 1,40,56,500/- 4. M/s. Nimbus Chemicals Axis Bank, Kandivali Branch C/A No. 201010200000161 89,92,300/- Total 4,59,89,900/- Thus, according to the assessee, the total cash deposits in all the bank accounts were to the tune of Rs. 4,59,89,900/-. The assessee further explained that the said Shri Jatin Shah assured him for a compensation of Rs. 1,00,000/- for providing such servi....
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.... 1. M/s. Advance Finstock Pvt. Ltd., Rs. 45,000/- 2. M/s. Swastik Enterprises Rs. 3,21,050/- 3. M/s. Amee Enterprises Rs.1,00,000/- 4. M/s. Amit Enterprises Rs.1,25,000/- 5. M/s. Devesh Corporation Rs.1,43,500/- 6. M/s. K.K. Enterprises Rs, 1,50,000/- 7. M/s,. Munimaji Silk Mills Rs.1,50,000/- 8. M/s. Raj Traders Rs.2,35,000/- 9. M/s. Pudvesh Tex. Rs.1,00,000/- 8. In the remand report, the AO further highlighted that he has examined some other parties to whom cheques above 1 lakh were issued by the assessee from these four accounts, which included M/s. Khushboo Enterprises for Rs. 3,55,000/-, M/s. A-one Enterprises for Rs. 5,30,000/-, M/s. MS Corporation for Rs. 2,03,700/-, M/s. HH Corpo....
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....ch the assessee had failed miserably during the assessment proceedings, remand proceedings and also during the appellate proceedings. Accordingly, the Ld. CIT(A) confirmed the additions made by AO. 9. The Ld. CIT(A) also rejected the alternative plea taken by the assessee that at the most the peak of the deposits should be accepted as unexplained money. Before us, the Ld. Counsel appearing for the assessee reiterated the stand taken by the assessee before the lower authorities. The Ld. Counsel argued that due consideration should be given to the capacity of the assessee. The assessee is neither in a position nor have any means to deposit such huge cash amount in the bank. The Counsel argued that the assessee was only an "accommodator" an....
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.... of appeal and has been accepted by the department in A.Y. 2002-03 in assessee's own case wherein the CIT(A) has enhanced the income of the assessee on the basis of the peak credit statement submitted by the assessee during the course of the appellate proceedings. Considering the above, the entire cash deposit for the year under consideration at Rs. 4,81,91,420/- cannot be added as deemed income of the assessee. We find some force in the argument of the Counsel that at the most the peak deposit in all the bank accounts taken together should be taken for the addition u/s. 68 of the Act. After considering the facts in totality and the rival submissions and in the interest of natural justice and fair play, we restore this issue back to the fil....