TMI Blog2008 (2) TMI 477X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts of the case are that the assessce continued to derive income as sub-broker from dealing in shares in his proprietorship concern called as M/s S.S. Securities. Survey under s. 133A was carried out in the business premises of the assessee on 6th Nov., 2000. Cash book was found to have been written upto 31st Oct., 2000. After taking into account the incomings and outgoings from 1st Nov., 2000 to 6th Nov., 2000, the cash balance as per cash book was worked out at Rs. 23,069 as against cash on physical verification found at Rs. 20,031, thereby leaving shortage in cash at Rs. 3,038. In the course of survey, computerized cash book was examined and cash transactions amounting to Rs. 19,51,980 were noticed. Vide question No. 12 of the sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f shares. Since she was not assessed to tax and confirmation was without evidence of source of Income, the AO held the cash credit of Rs. 3,25,900 appearing in her account as unexplained and accordingly made addition under s. 68. Similar position is prevailing about the other customers, the detail of which is as under: ------------------------------------------------------------ Sl. Name of the person who purchased and sold Amount added No. through the assessee under s. 68 ------------------------------------------------------------ 1. Smt. Yashoda Maheshwari 3,25,900 2. Shri M.R. Bbandari 2,15,000 3. Shri Phool Chand 4.90 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue authorities. Such surrender is liable to be ignored. We now proceed to decide the applicability or otherwise of s. 68 on the merits. 6. First creditor is Smt. Yashoda Maheshwari on whose account an addition of Rs. 3,25,900 was made and confirmed. She is stated to be the customer who had purchased and sold several shares through the assessee. Copy of her complete account is available at p. 118 of the assessee s PB, relevant part of which is reproduced as hereunder: ------------------------------------------------------------ Date Narration Debit Credit ------------------------------------------------------------ 05.04.2000 Being cash received from 60,000.00 Yash ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Yashoda Maheshwari 29.07.2000 Sett No. BIA/20000017 3,399.10 05.08.2000 Sett No. BIA/20000018 8,285.00 12.08.2000 Sett No. BIA/20000019 4,719.00 19.08.2000 Sett No. BIA/20000020 2,720.10 26.08.2000 Sett No. BIA/20000021 7,397.37 30.08.2000 Being cash paid on a/c 50,000.00 02.09.2000 Sett No. BIA/20000022 2,470.75 05.09.2000 Being cash paid on a/c 50,000.00 09.09.2000 Sett No. BIA/20000023 2,704.00 16.09.2000 Sett No. BIA/20000024 4,198.00 23.09.2000 Being cash received from 10,000.00 Yashoda Maheshwari 23.09.2000 Sett No. BIA/20000025 21,192.00 30.09.2000 Sett No. BIA/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the purchase made at Rs. 1,41,900 and sales made for this party at Rs. 2,65,991 thereby leaving the amount payable at Rs. 1,24,091 which has been shown as credit against the date 10th June, 2000. In the like manner, all the transactions against which the narration has been given 'settlement' show the amount receivable or payable by the assessee on account of transactions of purchase and sale of shares entered on the direction of Smt. Yashoda Maheshwari and the net balance whether receivable or payable has been debited or credited accordingly. In this way, pp. 156 to 168 of the PB shows total purchase of shares on behalf of Smt. Yashoda Maheshwari at Rs. 87.92 lakhs and total sale of shares at Rs. 84.80 lakhs during the year. From time to ti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , net balance of credit in this account is only a paltry sum of Rs. 1,831. If the contention of the Revenue is accepted that the sum of Rs. 3,25,900 represents the assessee's own income from undisclosed sources, then the balance in this account would become debit by almost similar amount which cannot be the case in this line of business. It is the common submission of both the sides that the other 12 parties In respect of which addition has been made and confirmed also represent the same type of transactions in which only cash receipts have been added under s. 68 leaving intact the payments received through cheques and also accepting the transactions of purchase and sale of shares. Under these circumstances, we are of the considered opinion ..... X X X X Extracts X X X X X X X X Extracts X X X X
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