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TMI Blog2016 (4) TMI 1042X X X X Extracts X X X X X X X X Extracts X X X X ..... see, we are of the view that the assessee was prevented by sufficient cause for not filing the appeal before the Tribunal within the stipulated period. Accordingly, we condone the delay and admit the appeal for hearing and adjudication. 3. Briefly the facts of the case are that the assessee, a commission agent, filed his return of income for the AY 2007-08 admitting total income of Rs. 2,32,206/-. The case was taken up for scrutiny. During the course of scrutiny proceedings, the bank accounts of the assessee were verified. In one account bearing NO.030401503633 maintained in assessee's name with ICICI Bank, the AO noticed that the total deposits were at Rs. 1,10,35,116/-. The assessee explained that he had been acting as an agent for Jana Chaitanya Housing Ltd., Suchir India and Chalapati Estates and apart from that he was also acted as a mediator between land lords and intended purchasers. The assessee had explained that on sale of properties, he collects the sale proceeds from the companies through cheques and deposit them in his bank account, withdraw from it through cheques and made payment to the sellers. He stated that the payments made by the companies include sale proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income Tax Rules, 1962. The CIT(A) called for a remand report from the AO on the written submissions as well as on additional evidences filed by the assessee. The AO filed remand report on 05/08/2013 wherein the comments of the AO are as follows: i) A letter was addressed to M/s Jana Chaitanya Housing Ltd., Guntur to verify the assessee's claim that he received payments from the companies on behalf of sellers of land and disbursed the amount to them. In reply, the company has clarified that the sale consideration was paid to land lords only. Hence, the assessee's claim that the deposits in the bank account include sale consideration received from the companies which again paid to land lords, is not acceptable. (ii) The assessee failed to furnish the details of lands sold, pattadar pass books, sale consideration, commission received and other evidence in support of his claim of acting as mediator, and receipt of commission. Pattadar pass books in respect of Sri D.Pentaiah, D.Jangamaiah, R.Balaraj and Yousuf Khan of Dandu Millaram village were only filed. The assessee did not file any evidence to show that he acted as a mediator by way of agreement or letter of authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 29/8/2013. The reply of the assessee was extracted by the CIT(A) in his order from pages 10 to 12. 4.3 After considering the submissions of the assessee as well as the remand report of AO and reply of the assessee against remand report, the CIT(A) partly allowed the assessee's appeal by observing as under: "5. I have carefully gone through the order of the Assessing Officer, the submissions made by the assessee, the remand report of the Assessing Officer and assessee's reply on the comments of the AO and every other material available on record. In this case, income was estimated at 25% of the total deposits in the assessee's bank accounts as the assessee failed to properly explain the same. The assessee has vehemently argued that he is deriving commission income from real estate activities by acting as a mediator in real estate transactions between the landlords and purchasing companies. He argued that the deposits in the bank accounts include sale consideration received from the buyers which were later on paid to the land lords. However, the assessee failed to furnish before the Assessing Officer and also before the undersigned, the details of lands sold, pattadar pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT (A) ought to have seen that the Assessing Officer merely estimated the income at 25% of the deposits made in the bank account without considering the fact that the deposits were properly explained." 6. Ld. AR submitted that assessee is a commission agent in the real estate activities. As a part of business strategy, assessee locates the purchasers and sellers, sometimes collects the amount from the purchasers and deposits the same with the seller. In such an event, the estimation of income @ 25% of the receipts is not justified. He submitted that AO had arrived the receipts at Rs. 72,09,792/- with one bank account and Rs. 48,21,120/- with another joint account with the Assessee's wife and son. The aggregate amount of receipts is Rs. 1,20,30,912/-. From the above receipts, the assessee had already offered Rs. 11,73,896/- as commission income, which is about 9.5%. Hence, the AO was not justified in estimating the commission @ 25% of the receipts. Therefore, the commission income offered by the assessee is quite reasonable. 7. Alternatively, Ld. AR also submitted that the peak amount of receipts amounted to Rs. 47,50,881/- and the opening balance was Rs. 22,28,473/-. The net pe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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