TaxTMI 
TaxTMI 
2023 (3) TMI 773
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....ssee has raised following grounds of appeal: "1. On the facts and circumstances of the case, the ld. CIT(A) was not justified in confirming addition of Rs. 29,91,500/- as income of the amount deposited in bank account of the appellant for the transfer of funds to the villages in Bihar by appellant's friends and relatives. 2. The ld. CIT(A) failed to appreciate the reality that it was not unusual for the persons like appellant to help other people hailing from villages of Bihar in transferring the funds by depositing cash into the bank account in Surat and corresponding withdrawal of such cash through ATM in villages in Bihar the very next day. 3. The ld. CIT(A) was driven by extraneous consideration in dismissing the appeal. 4. The appellant craves leave to add, alter or vary any of the grounds of appeal." 2. Brief facts of the case are that no return of income was filed by deceased assessee for the A.Y. 2008-09. The case of assessee was reopened on the basis of information received by the Assessing Officer that the assessee has made cash deposit of Rs. 29,91,500/- in his savings bank account. To examine the source of cash deposit, the Assessing Officer after recording rea....
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....entity proof in the form of Aadhar Card and the affidavit of assessee. The assessee also stated that they could not furnish such evidence at the time of assessment as the assessment relates to F.Y. 2007-08 while proceeding took place in A.Y. 2015-16. The assessee could not retrieve eight years old bank statement. The assessee could retrieve the bank statement after finalization of assessment order, i.e. during the appellate stage. The assessee prayed to admit the additional evidence under Rule 46A of the Income Tax Rules, 1962. 4. The ld. CIT(A) after considering the submission of assessee, upheld the additions made by the Assessing Officer by holding that there was no exceptional situation in which the resident of India was unable to open a bank account specially for amounts like Rs. 10,000/- to Rs. 50,000/- as seen in this case. So many persons were using cash transfer mode of postal authorities by way of money order and the explanation of assessee was held to be not satisfactory and dismissed the appeal of assessee. Further aggrieved, the assessee has filed the present appeal before this Tribunal. 5. I have heard the submissions of the learned Authorised Representative (ld. AR....
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.... explained that Rs. 34/- may be on account of transaction charge which were credited in the next day as has been shown in the statement. The ld. AR submits that similar pattern of cash deposit and withdrawal is shown in all the transactions. The ld. AR of the assessee submits that the Assessing Officer added the aggregate of all the deposits which cannot be the income of assessee in any circumstances, at the most, a peak credit entry/ amount which is highest of Rs. 50,000/- could be added. 7. In the alternative submission, the ld. AR of the assessee submits that either a reasonable percentage of one or two or at the maximum Rs. 200/- per transaction as has been shown in all the deposits can be added and not the entire aggregate amount. The ld. AR of the assessee submits that it is settled position in law that only real income can be taxed and not the entire transaction. The assessee earned a very small amount of commission while allowing his bank account for sending money of poor labourers to their family member. The ld. AR of the assessee submits that he has already placed on record the copy of summary of cash deposits and withdrawals by the brother of deceased assessee Shaukat A....
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....hat he has proved the identity of the persons, by filing confirmations and bank statement, proved the transactions and submitted that the assessee merely assisted a number of labourers who belongs to Bihar and working in adjoining area where the assessee was residing. The assessee also filed application under Rule 46A to admit such evidence on the ground that the assessee could not furnish such evidence as the transactions relate to eight years old and the assessee was not having entire evidence in his power and possession. 10. I find that the ld. CIT(A)/NFAC has referred/ scanned the submission of assessee on page Nos. 4 to 12 in his order. The ld. CIT(A) recorded that he has considered the grounds of appeal and submission of assessee that he used to collect commission for sending the cash through his account to the relatives of various persons in Bihar. The ld. CIT(A) held that in year 2007-08 there was no exceptional situation where the resident of India could not open a bank account and the persons were using cash transfer through postal authority like money order. The ld. CIT(A) further held that explanation offered by assessee is not satisfactory hence money deemed to be an ....