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2017 (12) TMI 1633 - AT - Income TaxAddition of undisclosed income - income estimated on hawala business of transporting cash from one place to another as per modus operandi as admitted by the assessee - Held that:- The addition on estimate basis on mere presumption and surmises, that too, in a search assessment cannot be upheld. As correctly observed by the FAA, neither during the search and seizure operation any incriminating material was found to indicate that the assessee was involved in hawala transaction to justify addition in these assessment years nor the AO has brought any material or documentary evidence even during the post search proceedings to justify such estimation. Therefore, the addition made for A.Y.2007–08 to A.Y.2012–13 on estimate basis by extrapolating the entrie/ figures found in the seized material pertaining to A.Y.2013–14 is legally unsustainable. As far as A.Y.2013–14 is concerned, we find from the material on record that the assessee furnished a working as per which the addition which can be made considering the total working days even as per the rate of commission adopted by the Assessing officer at 0.30% per ₹ 1 lakh would be ₹ 12,00,000/– and ₹ 6,00,000/– if commission rate of 0.15% per lakh as adopted by the assessee is considered. Learned CIT(A) accepting assessee’s claim has estimated the commission income for post search period at ₹ 6,00,000/– and sustained the addition to that extent. Conclusion of the First Appellate Authority to be on a reasonable basis hence, do not see any reason to interfere with the same. - Decided against revenue.
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