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2018 (9) TMI 965 - AT - Income TaxAddition u/s. 68 - unexplained cash credit - investment out of his undisclosed source - employer used/mis-used the account of the assessee with his knowledge and signature - Held that:- The assessee has been mis-utilized by his employer to route the cash through his bank account. In such a scenario, rather than finding out the real beneficiary in the whole modus operandi, the AO failed to collect any material or at least could not expose any falsity in the averments submitted by the assessee u/s. 131 of the Act. In such circumstances making huge addition in assessee’s hand of the entire deposit of cash in his bank account which admittedly has got out of his bank account to some other beneficiary or layers through which the real beneficiary gets the ultimate benefit cannot be countenanced and not only that the department will not be able to recover the tax also from person of no means. Only if the real beneficiary is traced out the department will be able to recover the tax due to the State. So by making additions in wrong hands from whom tax cannot be recovered, help only the ultimate beneficiary and not even the department. Thus for the interest of justice and fair-play, we are inclined to delete the addition as ordered by the AO/Ld. CIT(A). The assessee’s bank account since used for deposit and transfer of cash is an activity for which a commission of 0.1% needs to be computed as the income of the assessee and the income on which the assessee has to be assessed to tax. With the aforesaid direction, we partially allow the appeal of the assessee - Appeal of assessee is partly allowed.
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