TaxTMI 
TaxTMI 
2017 (1) TMI 889
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....loss a/c etc; (ii) By allowing the assessee right of set off of trading loss on share business in same bank account or allowing to carry forward the same; (iii) In enhancing the assessed income of the assessee from Rs. 7,00,779/- to Rs. 36,76,800/- by taking only credit side of the bank accounts and not considering the debits and the net amount on peak basis; (iv) In rejecting the assessee's explanation that the credits in the bank accounts were introduced by farmers for which the assessee had discharged its burden in respect of identity, creditworthiness and genuineness of the transactions. 3. Brief facts and observations of the ld. CIT(A) can be culled out from the following extract of the order of the ld. CIT(A):- "Finding....
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....ng the appellate proceedings, the A.R. of the appellant has filed written submission and the case was heard. The appellant submitted that the savings account was though in the name of assessee but the transactions are performed or entered into were for & on behalf of the relatives who are farmers and the assessee has nothing to do with the amount invested by the relatives except to earn 5% commission on income earned thereon as per the agreements executed between the assessee & relatives. It was duly explained to the Assessing Officer that the assessee is not a de-facto owner of the bank account. Also the result of share transactions was loss only and he has not even earned a commission. Thereon as per settlement with the share broker R. Wa....
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.... u/s 251(1) of the Act and is being decided accordingly. ............ ............ 6.7 The appellant has also contended that the claim of loss from share transaction be set off against other income. The contention of appellant is again self contradictory as on one hand he claims that the so called share trading was done on the behalf of his farmer relatives and he was to only get commission income while on the other hand he claims that the loss from the share trading be set off against other income. The appellant in the return of income has disclosed income from tuition only. No income from any ether source has been shown in tax returns. The appellant has neither shown any income from share transaction nor shown any income from com....
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....t have been found to have been fabricated and manufactured for a 'make believe' arrangement. Hence, the entire cash deposit of Rs. 36,76,800/- is being treated as undisclosed and added to the income of the appellant. The addition made by the AO in the assessment order of Rs. 7,00,779/- on account of peak credit is being enhanced to Rs. 36,76,800 /- under the provisions of section 251(1) rws 251(2) of the Act. The AO is being directed to issue the demand notice accordingly. As this Order of the Enhancement merges with the assessment order, no separate penalty proceedings u/s 271(1)(c) of the Act, is being initiated during the appellate proceedings as the AO has already initiated the penalty proceedings u/s 271(1)(c) rws 274 of the Ac....
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....given money to the assessee. On verification of the documents given by the AR there is not given a single proof of investment made by him for those farmers. On verification of the bank statement it is found that the assessee had deposited cash in bank periodically. Therefore the amount of Rs. 7,00,779/- which is not verifiable, hence the amount of Rs. 7,00,779/- (i.e. peak balance in bank) added back to the total income of the assessee. Penalty proceedings u/s 271(1)(c) of the Act are being initiated separately." 4.2 The ld. Counsel for the assessee vehemently contends that the assessee had filed additional evidences in support of the peak credit working and the genuineness of cash credits. Unfortunately, the ld. CIT(A) has not passed an....