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2017 (2) TMI 1419 - AT - Income TaxAddition u/s 68 - accommodation entries - HELD THAT:- A.O. was well aware of the fact that the impugned transactions were done by account payee cheques which means that the money has flown from one identified bank account to another identified bank account. Nothing prevented the A.O. to trace the beneficiary bank account but we find that the A.O. has not done any such exercise. No doubt, the burden is on the assessee but considering the nature of the transactions in the light of the statement of the assessee, the A.O. should have made enquiries in depth to trace out the real beneficiaries of the accommodation entries provided by the assessee. The assessee is a man of small means, therefore, cannot be said to have earned such exorbitant unaccounted income. More so, the assessee is employed in China and his only source of income is the salary received by him in China. Income Tax proceedings are civil proceedings and the degree of proof is by preponderance of probabilities. Considering the facts in totality in their true perspective, in our considered view, the balance of convenience, in the light of the preponderance of probabilities, is in favour of the assessee. Commission on accommodation entries - considering the nature of transactions and the acceptance by the assessee being an entry provider, the impugned transactions have to be considered in the light of the acceptance of the assessee. “Don’t shoot the messenger”. The assessee is earning commission by providing such accommodation bills and in our considered view and the understanding of the facts, the only addition that can be made on the given facts is the commission earned by the assessee by providing such accommodation entries. Considering the peculiarity of the facts of the case in hand, addition of the commission @ 3% of the accommodation entries should meet the ends of justice. We, accordingly, direct the A.O. to treat 3% of the accommodation entry as the income of the assessee. Appeal filed by Assessee is allowed.
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