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2019 (3) TMI 896 - AT - Income TaxUnexplained cash credit - addition u/s 68 - entry operator - taking total turnover of the entries as an unexplained cash credit - - search operation u/s 132 - assessee was carrying on the activity of providing bogus entries through various entities which were admitted to be controlled and managed by the assessee - HELD THAT:- CIT(A) did not commit any error in holding that Assessing Officer was not right in taxing the total turnover of the entries as an unexplained cash credit in the hands of the assessee, who is an entry provider and since the beneficiaries are identified, the entire amount should be brought to tax in the respective hands of the beneficiaries. Hence, the order of the CIT(A) is a well reasoned order and, therefore, we affirm the findings of the CIT(A) on the deletion of addition - decided against revenue Estimation of commission income @0.80% - We note that the entries provided by the assessee are mix-match of three types of entries as disclosed by the assessee in his statement recorded on 14-04-2012(post search). The rate of commission is not uniform in respect of these three types of entries. Therefore, to upheld the addition to the extent of 1.50% is not justified on the facts of the case more particularly when AO has not brought any material on record to justify the addition to this extent. Looking in to the facts of the case and the decisions relied upon, Ld. CIT(A) is justified in taking commission rate 0.80%. Therefore, we decline to interfere in a such well reasoned finding of CIT(A), hence, we uphold the findings of the Ld. CIT(A) on the issue in dispute and accordingly these grounds relating to the determination of rate of commission by the assessee as well as by the department are dismissed. Unexplained cash credit - A.Y. 2012-13 - HELD THAT:- CIT(A) has listed out the amount from various bank accounts in para 13 which are found to be the turnover of accommodation entries relating to the entities who have furnished the return of income as well as audited accounts which are relied upon and Ld. CIT(A) has observed that the same cannot be treated as unexplained deposits in the hands of the assessee. After perusing the findings of the Ld. CIT(A), we do not find any infirmity in the findings of Ld. CIT(A), therefore we decline to interfere in the deletion of amount and hence, uphold the order of the Ld. CIT(A) on the issue in dispute.
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