2025 (9) TMI 425

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....ounds nos.1,2 & 3 are against the confirmation of addition of Rs. 35,41,517/- by the ld. CIT (A) as made by the ld. AO on account of unexplained cash credit u/s 68 of the Income-tax Act, 1961 (the Act) in respect of undisclosed bank account while the issue raised in ground no.4 is without prejudice ground and is against the order of ld. CIT (A) not restricting the addition to the commission at the rate of 0.20% per Rs. 100 instead of entire deposit being addition u/s 68 of the Act. 03. The facts in brief are that the assessee filed the return of income on 08.10.2010, declaring total income at Rs. 1,22,035/-, which was duly processed u/s 143(1) of the Act. Thereafter the ld. AO received information from DDIT (Investigation), Unit 2(3) Kol....

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....essee was asked to explain the same failing which why same should not be added to the total income of the assessee as undisclosed cash credit u/s 68 of the Act. In compliance the assessee filed the submission along with the bank accounts, bills, vouchers and contract notes and other details account. The ld. AO thereafter taking into account the written submissions and the records produced by the assessee came to the conclusion that peak deposit/credit on single date on 26.03.2010, in the undisclosed bank accounts was Rs. 35,41,517/- and the same was added to the income of the assessee of treating the same as unexplained cash credit. 04. In the appellate proceedings, the ld. CIT (A) confirmed the order of the ld. AO after taking into acco....

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.... 5. The appellant before this authority argued that on providing the above accommodation entries to the beneficiaries the appellant earned a commission at the rate of 0.20 per Rs. 100 of the cheque issued and the deposits made in the undisclosed bank accounts do not represent its income they are merely transfer of cash belonging to the beneficiaries to their bank accounts through assessee's bank account in the form of bogus intra-day profit provided to them by the assessee. 6. The appellant further argued that the assessing officer was not justified in rejecting the appellant's explanation without verifying the same and the assessing officer was duty bound to verify the correctness of the explanation. In response to the AO&#3....

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....he appellant argument against the addition made and accordingly I confirm the addition made by the assessing officer by considering the peak credit as proposed by the appellant. Accordingly, the ground no.2 is dismissed." 05. After hearing the rival contentions and perusing the materials available on record, we find that undisputedly the assessee is engaged in the business of trading in commodities and was thereby providing accommodation entries to various beneficiaries. We have perused the evidences before us, wherein there is no doubt about the business of the assessee. Now, question before us is how the income to be estimated and assessed qua deposits made in the undisclosed bank accounts by the assessee. After examination of the bank....