TaxTMI 
TaxTMI 
2026 (6) TMI 539
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....an individual and did not file the return of income. The A.O received information that the assessee has made substantial cash withdrawals and deposits into his bank account during the year under consideration. Accordingly, the A.O issued a notice u/s. 148A(b) of the Act. Subsequently, the A.O passed order u/s. 148A(d) of the Act and notice u/s. 148 of the Act reopening the assessment. The assessee filed the return of income in response to notice u/s. 148 declaring total income Rs. 3,98,730/-. The A.O called on the assessee to furnish details pertaining to the cash withdrawals and deposits. The assessee submitted that he is acting as a commission agent for farmers towards supply of fruits. The assessee further submitted that he receives the ....
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.... In grounds 3 and 4, the assessee contends that the deposits and withdrawals represented sale proceeds received on behalf of mango farmers and not his own money, as he was acting merely as a commission agent. It is argued that the AO failed to appreciate that the assessee's income consisted solely of commission, and that withdrawals were made for payment to farmers after deducting commission at the rate of 1.5%. The assessee asserts that section 69A is inapplicable since he was never the owner of the funds, and that bank statements and confirmation letters from the companies involved support this explanation. During appellate proceedings, the assessee reiterated these submissions and produced computation of income, bank statem....
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....see's commission income at 8% of the total credited amount of 2,41,49,000/- (as per receipts from companies), which works out to 19,31,920/. This estimated income will replace the addition made by the AO under section 69A. Accordingly, the addition of 2,51,83,611/- made under section 69A is deleted, and the income is recomputed by adopting 8% commission on the relevant turnover. The appeal of the assessee on these grounds is partly allowed." 3. The Ld. Departmental Representative (DR), submitted that the sale proceeds which were withdrawn in cash to be distributed to the farmers is not substantiated. The Ld. DR further submitted that there is no evidence that the assessee acting only as commission agent and therefore, the CIT(A)....
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....o the claim that the amount credited in the bank account are received in his capacity as commission agent acting on behalf of farmers for sale of fruits. The CIT(A) restricted the addition to 8% stating that the pattern of transaction in the bank account supports the claim of the assessee. During the course of hearing our attention was drawn to the confirmations from the companies (page 15 to 19 of paper book) from whom the assessee has received the money towards sale of fruits. On perusal of the said confirmation, we notice that the parties have confirmed supply of fruits on behalf of farmers' which is routed through the assessee acting as an agent. It is also mentioned in the confirmation that the payments made by these parties to the....