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2016 (12) TMI 1546 - AT - Income TaxReopening of assessment - Disallowance at 2% of net commission of assessee out of a total receipts shown by the assessee being sales made - Held that:- We find from the order of the AO that the assessee is unable to prove the amounts credited in the bank A/c in cash as well as other credit entries and the persons to whom accommodation bills were provided. The assessee could not provide the details of beneficiaries it means that no sale has been affected by the assessee. The CIT(A) has totally gone on wrong premise by treating the unaccounted sale on which net commission of 2% is to be charged as profit of the assessee but according to us the assessee is unable to prove the sales as he is unable to prove the beneficiaries. First of all, the assessee has to prove the beneficiaries to whom these accommodation entries are given and in case he is able to provide information in relation to beneficiaries and beneficiaries admit that they have paid only net commission, only then the commission is added otherwise the entire deposits to be added in the hands of the assessee. But, before that the compete verification of facts are required because none of the authorities below have brought on record the facts of the case. Even otherwise, the assessee has to provide details of beneficiaries so that the AO can verify and finalize the assessment as per the provisions of the Act. Accordingly, both the appeals, of Revenue as well as assessee, are allowed for statistical purposes and matter is remanded back to the AO. The orders of lower authorities are set aside.
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