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2022 (3) TMI 220 - ITAT PUNEAddition u/s.68 - AO rejected the contention on the ground that the assessee could not furnish L.R. Receipt Numbers, Freight/Transport receipts etc - HELD THAT:- View point of the AO that the entire gross commission was chargeable to tax. Here is a case in which the assessee suo motu offered income from Turmeric trading activity - AO has not only taxed this income but also made an addition of ₹ 13.12 lakh on account of gross commission income from Sh. Bharat Nilakhe. He went a step further by also adding a sum when received from Sh. Bharat Nilakhe on account of profit from sale and purchase of turmeric, which also included a sum in the name of Sh. Kailash Gidwani HUF account. In view of the fact that the transactions of the assessee concerning purchase and sale of Turmeric were genuinely conducted through Sh. Bharat Nilakhe, in the same way in which he did with other more than 100 traders in Sangli, genuineness of all of which has been accepted by the Department, there is no logic in making or sustaining the additions in the hands of the assessee, which are just off shoot of such a trading activity. These additions are directed to be deleted. Addition of deemed dividend u/s.2(22)(e) - CIT(A) directed the AO to verify his records and if the transaction related to previous year relevant to the assessment year 2009-10, then no addition should be made - HELD THAT:- It is seen that the assessee contended before the ld. CIT(A) that the sum in question was received and taxed in the immediately preceding year. CIT(A) sent the matter back to the AO for carrying out necessary verification in this regard, which ought to have been done by him alone because now there is no power with the CIT(A) to restore the matter to the AO. DR failed to bring on record any material contrary to the assessee’s claim as made before the ld. CIT(A) that the sum was received during the earlier year from M/s Apeksha Impex Ltd. therefore, order to delete the addition.
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