TMI Blog2016 (9) TMI 694X X X X Extracts X X X X X X X X Extracts X X X X ..... ctions done in the assessee’s bank account. It will put the AO in diffcult situation. The easiest way is to assess the income in the hands of the assessee on presumptive basis. We find it reasonable and appropriate to charge at 8% of the deposits as his income. Accordingly, we direct the AO to estimate the income of the assessee at 8% of the total deposit amounts as done in the case of Assessee’s brother. - Decided in favour of assessee - ITA No. 306/Hyd/2015 - - - Dated:- 5-8-2016 - SMT P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER For The Assessee : Shri S. Rama Rao For The Revenue : Shri K.E. Sunil Babu ORDER PER S. RIFAUR RAHMAN, A.M.: This appeal is preferred by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turns by his brother. Since the copies of documents filed by the assessee did not contain any copies of final accounts on the basis of which income of his brother was arrived at, the assessee was asked to furnish the same for verification in support of his claims. Since the assessee failed to furnish any other documentary evidence in support of his claims, and in absence of proper/satisfactory explanation by the assessee towards the cash deposits in his SB A/c, the AO treated the entire cash deposit amount of ₹ 56,96,000/- as his unexplained sources income and the same was added to the income returned. 2.2 As regards the assessee s claim of deduction of ₹ 27,480/- u/s 10 towards HRA, since the assessee could not substantiate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osits made and not any loan obtained from any source. h) During the course of appeal proceedings, when the Authorized Representative was asked to produce any three students for whom finances were provided, it was stated that, it was not possible to produce the students. However, he produced bank accounts of 3 persons for whom he arranged funds. How appellant could produce bank accounts when he could not produce the individuals is not understood. l) During the course of appeal proceedings the Authorized Representative submitted that he has no objection if the income is estimated or the peak credit is considered as in the case of earlier years. However, such request of the Authorized Representative cannot be considered for the rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctions belong to the assessee's brother one Mr. Nooruddin, inspite of producing all the relevant supporting material. b. stating that the assessee has not come out with full truth, when the assessee and his brother both appeared and both confirmed the transactions belonging to whom. c. Not observing the fact that the credits in the bank account emanated from the withdrawals itself. The assessee requested for addition of income, if any, either on the basis of peak credit or estimating the income at 8% of total deposits as was done in the assessee's brother's assessment/s of earlier years U/s. 143(3), copies of which were produced before the CIT(A). d. stating that the assessee's brother has not maintained an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rother was dealing with arranging education loan to students. He submitted that assessee has facilitated his brother to operate his bank account, the income may be arrived at 8% on deposits on presumption basis. 7. Ld. DR, on the other hand, relied on the orders of AO and CIT(A) and submitted that the income may be estimated @ 12%. 8. Considered the submissions of the parties and perused the material facts on record as well as the orders of revenue authorities. The fact is that the Assessee being a salaried employee, allowed his brother to operate his bank account to run his business. The same was confirmed by his brother before the AO. In our considered view, we will have two ways to address the current issue. Either to assess the in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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