2023 (12) TMI 101

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....No. 1869/Mum/2023 as a lead case and its finding will be applied mutatis mutandis to the other appeal wherever it is applicable. ITA No.1869/Mum/2023 Ground No.1 On the facts and circumstances of the case, the learned Commissioner of Income-tax (Appeals) -NFAC, Delhi erred in law in sustaining the addition of Rs. 765,553 made by the assessing officer (being 1% of total credit amount in the bank accounts of the appellant not operated by him) without considering the fact that the appellant had not handled the bank operations for which the addition is made and also without considering the reality, the age, background/status, circumstances and the facts of the case of the appellant and ignoring that the appellant was only h....

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....thdraw or modify any of the above grounds of appeal before or at the time of hearing." 2. Fact in brief is that assessing officer has received information from the ADIT (Investigation) Unit 5(3), Mumbai that assessee has credited total amount of Rs. 765,55,253/- in the bank account in the name of various proprietorship concerns and assessee had also received contracts of Rs. 5,75,000/- from two contract awarding parties as per ITD system. Since, assessee has not filed return of income, therefore, considering the facts, the case of the assessment was reopened by issuing of notice u/s 148 of the Act on 31.03.2016. On query, the assessee explained that assessee was acting on behalf of his employor Mr. Hitesh G. Shah, without any actual deal....

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....e employer of the assessee Mr. Hitesh G. Shah was running several proprietary concern through the connivance of the assessee and all the bank accounts were handled by his employer. However, because of association of the assessee with his employer in the bogus business activity the AO has estimated 1% of the total gross amount to the amount of Rs. 76,553/- as incentives in hands of the assessee. During the course of appellate proceedings before us the ld. Counsel contended that assessee has already shown the impugned commission and incentives to the amount of Rs. 1,20,000/- received by the assessee from his employer for associating with his employer in his bogus business. Therefore, he submitted that further addition made on estimation basis....