TMI Blog2022 (7) TMI 1047X X X X Extracts X X X X X X X X Extracts X X X X ..... t he was doing dalali business of sale and purchase of land, flat bungalows in the last two years. Thus find no infirmity in the orders of the authorities below to treat the cash found and seized during the raid conducted by the Vigilance Squad of State Police, Gandhinagar at the residential premises of the assessee as his commission/dalali income from real estate agency business. Addition of 1% of total transactions relating to cricket betting - The assessee also never offered any satisfactory explanation regarding the nature of the said transactions as well as the income earned by him from the said transactions despite sufficient and specific opportunity afforded by the Assessing Officer in this regard during the course of assessment proceedings. He also did not produce any books of account or other relevant details to show the exact amount of income earned by him from the said transactions. Assessing Officer, therefore, was left with no option but to estimate the income of the assessee at 1% of the total transactions for both the years under consideration as found recorded in the laptops found from the possession of the assessee. Whether the estimate so made by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 132A of the Income-tax Act, 1961 ( the Act in short) was issued on 30.01.2012. An application was also made before the Additional Chief Judicial Magistrate, Kalol for requisition of assets, in response to which the police authority was directed by the Court vide order dated 15.05.2012 to handover all seized assets which were ultimately requisitioned under Section 132A of the Act on 05.09.2012. Although a different stand was taken by the assessee in respect of cash of Rs.43,88,500/- found during the course of raid, he finally claimed that he was engaged in the business of real estate agency and the said cash represented his commission income earned from the said business. Consequent to action under Section 132A of the Act, proceedings under Section 153A of the Act were initiated in the case of the assessee inter alia for both the years under consideration i.e. AY 2011- 12 and 2012-13 by issuing notices on 24.06.2013. During the course of assessment proceedings, copies of printouts taken from the seized laptops were provided to the assessee and he was asked to explain the transactions of Rs.33,09,01,900/- and Rs.111,48,49,350/- relating to AYs 2011-12 and 2012-13 respectively as fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3) Estimation of our income Please refer my letter dated 31-12-2014 filed on 01-01-2015 where in I have clearly mentioned that I have truly disclosed all my assets (Capital) as income. This was done to buy peace and not confrontation with I.T. Department. I am 40 yrs old and this is my total Wealth/Assets/Capital other than a House which belongs to my wife no other document evidencing any other assets was found during search. I myself do not know how much I have earned or lost out of these activities. Still I filed my return to pay taxes to makes my life normal for a respectable future. I have nothing to say any more and your goodself is requested to assess me as per my returns filed. I hereby clarify again that I have not filed my return of income on the basis of income but on the basis of assets. 3. The above explanation offered by the assessee was not found acceptable by the Assessing Officer for the following reasons given in paragraph No.7 of his order:- 7. The submissions made by the assessee have been carefully gone through. However, the same is not found acceptable. It is admitted by the assessee and also established that the assessee is engaged in the bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clared income from commission in return of income which is also confirmatory with the statement given before ITO (Inv), Unit-II, Ahmedabad. Therefore the income earned from cricket betting is over and above the income from commission shown in the return of income. The hardcopy of laptop data were already provided to the assessee. The transaction found for the year under consideration is of Rs. 33,09,01,900/-. In this regard the assessee has stated in his reply dated 08-01-2015 as the copies of book lets provided by you out of our seized material contains only entries of saudas entered into. During the course of matches, as per telephonic conversation the entries in computer was made for his settlement of dues. No profit or loss can be arrived at with these entries . The contention of the assessee is totally baseless and without any documentary evidences. The reasons for the same are that the assessee have been given proper opportunity to offer his explanation regarding entries made in the laptop. The hard copy of the same have also been provided to the assessee. Further the assessee was requested to produce the various persons whose name appeared in the entries made in the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed by the Ld AR. I find that the appellant has not explained the amount of Rs.33,09,01,900/- for A.Y. 2011-12 and Rs.1,11,18,49,350/- for A.Y. 2012- 13 and has not given details of income from running the racket of cricket betting. I also do not find the explanation that the winners take all money and losers default in payment as acceptable because betting rackets are run by powerful syndicates managed by the strong people from underworld who are capable enough of realizing their dues and enforcing that there is no default. Betting is a matter of habit and immense trust. Neither the betting running syndicate nor the betters are known to quit. Both parties have their ways and means to enforce discipline and payments. If winner is assured of his winning amount, the loser also cannot risk his life and his family by defaulting in payments. Otherwise also it appears against the prudence that anybody will get into and continue to be in an illegal occupation of betting if he is not earning handsomely. I also find that no material has been submitted before me to interfere with assessment made by the AO. However, it may appear that it may have been proper if the cash seized of Rs.43,88,5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mr. Himanshu and even the affidavit of Mr. Himanshu was also filed owning the said cash. Thereafter, in the statement recorded on 19.10.2012, the assessee again changed this stand by stating that the cash found and seized was his income from dalali. Even though there was no mention of any real estate agency business in the said statement, there was a specific mention by the Assessing Officer on page No.7 of his order that a letter dated 09.09.2014 was filed by the assessee during the course of assessment proceedings stating that he was doing dalali business of sale and purchase of land, flat bungalows in the last two years. Keeping in view the same as well as all other facts of the case, we do not find any infirmity in the orders of the authorities below to treat the cash of Rs.43,88,500/- found and seized during the raid conducted by the Vigilance Squad of State Police, Gandhinagar at the residential premises of the assessee as his commission/dalali income from real estate agency business. 8. The second contention raised by the assessee in the written submission filed before the Tribunal is that the addition of 1% of total transactions relating to cricket betting, as made by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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