TMI Blog2016 (10) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... e : Sk. Golam Kuddus K. Jasmine Sheikh, Advocate ORDER Per Dr. A.L.Saini, A.M .: The captioned appeal filed by the Revenue and the Cross Objection filed by the assessee pertaining to assessment year 2006-07, are directed against the order passed by the Ld. Commissioner of Income-Tax (Appeals)-XXX, Kolkata in appeal No.376/CIT(A)-XXX/Wd-46(2)/2011-12 dated 30.01.2013, which in turn arises out of an order passed by the Assessing Officer under section 143(3) of the Income Tax Act, 1961 (in short, `the Act`) dated 30th December, 2011. 2. Since the appeal filed by the Revenue and the Cross Objection filed by the assessee relate to the same assessee and same assessment year and involve common issues, therefore, these have been clubbed and heard together and a consolidated order is being passed for the sake of convenience and brevity. 3. The facts of the case are stated in brief. The assessee is carrying on the business of courier service under the trade name of Manish Courier and side by side, the assessee is also engaged in his traditional and family business of zari work under the name of Manish Trading. The return of income was filed by the assessee on 21.01.2010 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the matter then the A.R. for the assessee appeared before AO on 20.10.2011 with a written submission. The A.R. explained the Assessing Officer that the assessee is carrying out the business of courier services under the name of Manisha Courier in Mumbai and Panchla village in West Bengal. The nature of the courier service is to collect money at branch office of the assessee in Mumbai from several persons who are in Mumbai for their occupation and want to send money to their family in West Bengal without any banking access. The assessee collects a service charge for this facility, under proper receipt to the remitter. The branch office of the assessee deposits the daily collection from different persons in the account of the assessee with Standard chartered bank in account no.322-0-535778-8 and 225-0-565611-2, both the accounts are being produced. The assessee in turn withdraws the money from Standard Chartered bank, Park Street branch and then sends the money to the relative of the remitter under counter signature of the recipient. This was the modus operandi of assessee s courier service. On 06.09.2011, a notice was issued by AO under section 133(6) of the I.T. Act, 1961 to S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8,780/- represents his concealed income and therefore added to the total income of the assessee as unexplained cash credit. 7. Aggrieved from the order of the ld. AO, the assessee filed an appeal before the ld. CIT(A)-XXX, Kolkata, who has given part relief to the assessee observing the following: 4.1 Coming to the issue of taxation of deposits in this account during the Financial Year 2008-09, it is seen that there were regular cash deposits and withdrawals from this account during the financial year. In such a situation considering the decisions of the Hon'ble Tribunal and High Court regarding taxation of undisclosed cash credit, is to be considered for addition u/s.68 and not the entire deposits. This view has been held by the Jurisdictional Bench of ITAT in ITO Ward-50(3), Kolkata v. Madhu Kedia as also in the case of Gangaprosad Vyas v. Department of Income Tax in ITA No.2069/Kol/2010 dated 23.03.12. It is therefore held that the Appellant's case is covered by the decisions in the above cited cases and the peak credit of the deposits i.e. the highest deposit in a particular day is to be considered for addition. The total deposits in this account are summariz ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... later on he confronted when the AO summoned the bank authority under section 133(6). Then bank has disclosed a new savings bank account which was never accounted by the assessee and never disclosed by the assessee. Ld. DR further explained that the assessee submitted before the ld. CIT(A) that he has received the commission on account of courier services and therefore, he has disclosed the account. The commission received by the assessee against the courier services had been duly getting reflected in the Profit Loss a/c. and the said commission relates to only the savings bank account under dispute, is kind of an after-thought process and should not be acceptable. The ld. DR has strongly defended the order made by the ld. AO and stated that the said bank account which was never disclosed by the assessee, must be treated as an undisclosed income. The ld. DR further stated that the entire deposits in the said undisclosed account should not be assessed by applying the peak credit deposited because all the moneys credited therein belonged to the assessee. 7.2 The ld. AR for the assessee has stated that the assessee is in Cross Objection on the same issue. Ld AR has submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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