2026 (3) TMI 312

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.... 147 r.w.s. 144 of the Income-tax Act, 1961 ("the Act") for AY 2013-14 and confirmed by the Learned Commissioner of Income-tax (Appeals), hereinafter referred to as CIT(A), is bad in law and liable to be quashed. ii. On the facts and in the circumstances of the case, and in law, the Learned CIT(A) erred in holding that the AO exercised his jurisdiction u/s 148 of the Act properly without appreciating the fact that there is no valid service of notice u/s 148 of the Act. iii. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in confirming action of AO for making addition u/s 69A as unexplained money when the amount of Rs. 43,71,193/- was received as sub-brokerage commission from BN Rathi Comt....

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....ppeal are dismissed being not pressed. 4. Ground nos.(iii) and (iv) are regarding the addition made by the Assessing Officer of Rs. 43,71,193/- treating the entire commission receipt as income. The learned Authorised Representative of the Assessee has submitted that the assessee is a housewife though the husband of the assessee allowed the bank account of the assessee as well as himself to be used by stockbroker B N Rathi Comtrade Private Limited. The learned Authorised Representative of the Assessee has submitted that it is a case of lending of bank account and receiving the commission income from the stockbroker which has been assessed by the Assessing Officer on gross receipt basis without allowing any expenditure. The learned Authori....

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.... the assessee may be allowed. 5. On the other hand, the learned DR has submitted that there was no representation on behalf of the assessee either before the Assessing Officer or before the learned CIT(A). Even the stockbroker B N Rathi Comtrade Private Limited was under the investigation of the SEBI and the SEBI has cancelled the registration of the stockbroker. She has relied upon the Orders of the authorities below. 6. I have considered the rival submissions as well as relevant material on record. The Assessing Officer has made the addition of the entire credit reflected in the bank account of the assessee on account of commission and brokerage. It is also an undisputed fact that the said commission was subjected to TDS as reflecte....

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....672316 28.14% 6 Hybrid Financial Services Limited 6857000 -4797000 -69.96% 7 Inventure Growth & Securities Limited 158329093 27576954 17.42% 8 Networth Stock Broking Ltd 186815733 2907803 1.56% 9 Share India Securities Ltd 150832000 18938000 12.56% ARITHMETICAL MEAN OR AVERAGE PROFITABILITY (-) 0.02% 6.2. Even all profit-making company's average profit margin comes to around 12%. Hence, in the facts and circumstances of the case and to meet the ends of justice, the income of the assessee is estimated by taking a reasonable rate of profit in the hand of the assessee being an individual @ 25%. This estimation is done on the specific facts of the case that the assessee all....