TaxTMI 
TaxTMI 
2026 (6) TMI 1330
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....the Assessment Year 2015-2016. 3. The Assessee has raised the following grounds in the present appeal: "1 The assessment order passed u/s 147 read with section 144B of Income Tax Act by the Assessing Officer and confirmed by the first appellate authority u/s 250 is bad in law and deserved to be uncalled for. 2. The assessing officer as well as first appellate authority has erred in law and on facts in adding and confirming respectively the unexplained cash deposit of Rs. 5,16,01,955/-. The same deserves to be deleted. Without prejudice to above benefit of peak credit may be given if addition is sustained" 4. We have heard both the sides and have perused the material on record. 5. It emerged that the reassessment proceedings under Section 147 of the Act were initiated in the case of the Assessee for the Assessment Year 2016-2017 since the Assessing Officer had information that substantial cash deposits were made in the bank account of the Assessee maintained with Shri Renukamata Multi State Urban Co-operative Credit Society Ltd. [for short 'Shri RenukamataCo-operative Society'] during the relevant previous year. Since the Assessee did not respond to the no....
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....ncome. Bases upon the assurances given, opened bank account with Shri Renukamata Co-operative Society and signed blank forms, cheques and other documents etc. It has been claimed by the Assessee that the Assessee had no knowledge of the alleged transactions undertaken by syndicate of the bank employees and anagdiya firm. In support the Learned Authorised Representative for the Assessee placed reliance on judicial precedents forming part of legal paper-book filed by the Assessee. 9. Per Contra, the stand taken by the Revenue is that the Assessee had failed to discharge even the primary onus to prove that the cash deposited did not belong to the Assessee by furnishing the details of the actual beneficiaries. In this regard, the Learned Departmental Representative reiterated the findings returned by the Assessing Officer and the Learned CIT(A). 10. We have considered the rival submission and have perused the material on record. 11. It is admitted position that in search and seizure operations conducted by the Investigation Wing it emerged that the accounts maintained with Shri Renukamata Co-operative Society were being used to route undocumented cash income into books of acco....
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....r persons, it would be reasonable to conclude that the assessee had participated in accommodation entry transactions and would have earned commission income therefrom. 14. Considering the totality of the facts and circumstances of the case, and in order to meet the ends of justice, we are of the considered view that taxing the entire deposits under section 69 of the Act would be excessive. At the same time, the assessee cannot escape taxation altogether in view of the failure to explain the nature and source of the deposits. Accordingly, the Assessing Officer is directed to work out the peak balance of the bank account and thereby tax the same accordingly, in the hands of the assessee, as per law. 15. In the result, the appeal of the assessee is partly allowed." 15. In the present case, we find that the Assessee has neither filed the bank statement nor has the Assessee given information/details of the beneficiaries. Further, during the appellate proceedings before the Learned CIT(A) the Assessee furnished details of 20 parties and stated that the Assessee was carrying out angadiya business, whereas in the submission filed before the appellate proceedings before....
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....ts, allegedly operated by third parties. The CIT(A) had dismissed his appeals ex parte due to non-compliance. The assessee explained that he was misled by an accountant and unaware of the proceedings due to his limited education and background. The Tribunal found merit in the assessee's explanation, particularly since no opportunity was provided to rebut evidence, and no proper inquiry was conducted into his claim that he had no ownership over the funds. The ITAT set aside the orders of the AO and CIT(A), restored the matters to the AO for fresh adjudication after providing relevant materials and an opportunity of hearing. Again, in the case of Bhavin Manoharbhai Parmar vs. Income Tax Officer, Ward-5, Mehsana [ITA No.1826/Ahd/2024, A.Y. 2016-17 vide order dated 06.05.2025], the Ahmedabad Bench of the ITAT considered an appeal against the order passed by the CIT(A), NFAC, confirming an addition of Rs.1,38,32,749/- made under section 69 of the Act. The addition was based on unexplained cash deposits found in the assessee's account with Sri Renuka Mata Multi-State Co-op Credit Society Ltd. The ITAT noted that the assessee had failed to provide any supporting evidence during the as....
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.... the issue back to the file of the Assessing Officer, the Assessee would be at liberty to contend before the Assessing Officer that the additions be restricted to peak credit in the bank account and the Assessing Officer would be at liberty to adjudicate the upon the aforesaid contention as per law. In terms of aforesaid, Ground No.2 raised by the Assessee is treated as allowed for statistical purposes while Ground No.1 is dismissed without returning any finding on merits. 17. In result the appeal preferred by the Assessee is partly allowed ITA No. 176/AHD/2024 18. Next, we would take up ITA No. 176/AHD/2024 filed by the Assessee challenging the Order, dated 27/11/2023, passed by the CIT(A) whereby the Learned CIT(A) had dismissed the appeal against the Assessment Order, dated 26/03/2022, passed under Section 147 read with Section 144 and 144B of the Act for the Assessment Year 2016-2017. Delay of 6 days in filing the appeal is condoned. 19. The Assessee has raised following grounds of appeal in ITA No.176/AHD/2024: "1. The assessment order passed u/s 147 read with section 144B of Income Tax Act by the Assessing Officer and confirmed by the first appellate authori....