2017 (3) TMI 431

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....nces of the case, the Learned Commissioner of Income Tax - Appeal was not justified in confirming the addition of Rs. 22,51,148/- being unexplained credit in bank deposit. 3. When the matter was called for hearing, none appeared for the assessee. It is seen from the record that the notice has been served on the assessee by Registered Post intimating the date of hearing. The assessee has neither attended nor sought any adjournment. Thus, it can be presumed that the assessee is not interested in prosecuting the appeal. Accordingly, the matter is proceeded ex-parte in the absence of the assessee. 4. The Ld.DR representing the Assessing Officer (AO) relied upon the order of the CIT(A) and submitted that the issue has been discussed thread....

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.... the name and address of the so called investors or any other documentary evidence in support of his claim that the cash received from the investors was deposited in his bank account. The AO further found that the appellant could not furnish the details of commission income earned from such undisclosed insurance/mutual fund/ bond business along with the TDS certificates. The AO added the entire deposit of Rs. 27,04,907/- credited in the said bank account as undisclosed income of the appellant earned during the year. 4. In appeal, the appellant reiterated the submission made before the AO that he was working as an agent for financial investor and earning commission of 1 to 2% from principal agents which he offered for taxation in his retu....

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....at during the year the total cash deposit is Rs. 24,93,500/- and total cheque deposit is Rs. 2,09,677/- Against these deposits the appellant has issued cheques of Rs. 5,62,229/- which has been cleared by clearing and has also transferred funds by cheque of Rs. 16,38,000/- The appellant has not given any details of the name, address & PAN of the person whom the cheques were issued or from whom cheques and cash were received. In view of the above facts, the appellant's contention that he was working as a commission agent for various mutual funds/bonds and the amount deposited in the bank account represents the actual investor's money cannot be accepted as he has failed to give the name, address & PAN of person whose money he had deposited in ....

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....it of rotation of cash, that is, the cash withdrawals might be available for re-depositing in cash. Considering the complete facts of the appellant's case, peak is admissible only to the extent of cash deposit and cash withdrawals. As far as credits by cheque are concerned, the total amount deposited by cheques is held to be the unexplained cash credits in absence of any satisfactory explanation from the appellant. 5.4 From the perusal of the bank statement of the undisclosed bank account of the appellant, the following facts emerge: (A) Peak of credit is only cash transactions appearing in the bank account are considered: Rs. 20,49,500/- appearing on 29.03.2000. (B) Total of cheque deposits in the bank account held as ....