2026 (7) TMI 306

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....th the appeals, we hereby pass a consolidated order by taking ITA No.1056/SRT/2025 pertaining to A.Y. 2012- 13 as the lead case. 3. The assessee has raised the following grounds of appeal: ") The learned CIT (A) grossly erred in confirming addition of Rs. 1,66,81,852/- in respect of alleged huge profit on commission of draft / cheques discounting as discussed in para 6.2 of the appeal order. 2) The learned CIT (A) grossly erred in confirming addition of Rs. 43/- lacs in respect of transactions of cheques discounting of Madan Overseas as discussed in para 7.2 & 7.3 of the appeal order. 3) The appellant reserve right to add, alter and withdraw any grounds of appeal." 4. The assessee had filed original return o....

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....00,000/- as unexplained income. 5. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 6. The Ld. Authorised Representative (in short "Ld. AR") for the assessee in respect of ground No.1 submitted that there was no difference of opinion so far as the nature of business viz. discounting of cheques/drafts on part of the Revenue. The Ld. AR further submitted that there are no unaccounted bank accounts, rather, the cheques/drafts discounting was made through various bank accounts which were part of the regular accounts. The assessee has filed certificate for money lending in order to justify dealings of cash payment against cheques/drafts and the commission....

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.... profit shown in the return of income for Rs. 3,27,298/-. Thus, ground No.1 is allowed. 10. As relates to ground No.2, the Ld. AR submitted that the assessee had filed return of income along with audit report and the balance sheet does not show any loan from Madan Overseas as stated by the AO. The assessee also filed bank statement of Bank of India which was part of regular books of accounts and there is withdrawal of cash for payment to them against RTGS from Madan Overseas. The Ld. AR submitted that he had never taken any loan from Madan Overseas rather he discounted cheques of Madan Overseas and is entitled to commission income only. 11. The Ld. DR relied upon the assessment order and the order of the CIT(A). 12. We have heard b....