2017 (5) TMI 4

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....ly on facts in considering a sum of Rs. 20,21,147/- being the amount deposited by the deceased assessee in his bank account during the period from 01/4/2008 to 04/9/2008 as income from commission and thereafter considering 50% of the same as net income of the appellant from such commission. 2. That under the facts and circumstances of the case, the ld. CIT(A) has erred on facts in considering a sum of Rs. 3,632/- as income from commission without allowing any deduction for expenses incurred for earning such commission." 2. The brief facts of the case are that the Assessing Officer received information through AIR that there was a cash deposit in the savings account No. 0767000100363209 maintained with Punjab national Bank, Jhotw....

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....nt order and bank statement of assessee, it seen that there is continuous cash deposit/withdrawal. Deposits in bank have been made at various places like Bharatpur, Jodhpur, Bangalore and Guwahati but withdrawals were made only at Jaipur. This indicates that he was doing some business out of books against which the amounts are being received. AO made an addition of entire cash deposit which appears to be incorrect. The addition should be for profit earned from these transactions and the peak deposit in the bank account. Further I find that the assessee expired on 4.9.2008 and therefore addition in hands of assessee can be made only in respect of deposit up to 4.9.2008. Total deposit up to 4.9.2008 is Rs. 20,21,147/-. Further on per....

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....rn of deposits and withdrawals shows that the income credited in this account was out of the cash transactions of trading activity, therefore, the provisions of Section 44AF of the Act for estimating the income of the assessee on the total deposit of Rs. 20,21,147/- has to be considered. The 5% of deposit of Rs. 20,21,147/- comes to Rs. 1,01,057/-. The peak of the deposits in this account also comes at Rs. 89,332/-, thus the income of the assessee for this period out of these transactions recorded in bank can reasonably and justifiably be estimated at Rs. 1,01,057/-. Thus, this ground of the assessee's appeal is partly allowed. 5. In the ground No. 2 of the appeal, the issue involved is receipt of Rs. 3,632/- as a commission from insuran....