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2017 (3) TMI 431 - ITAT AHMEDABAD

2017 (3) TMI 431 - ITAT AHMEDABAD - TMI - Unexplained credit in bank deposit - Held that:- As based on the AIR information, the AO found cash deposits to the tune of ₹ 27,04,907/- with Axis Bank for acquiring bonds/debentures in the Financial Year relevant to Assessment Year 2008-09. We find that the CIT(A) has examined the issue in perspective and has granted partial relief thereon. The order of the CIT(A) appears reasoned and plausible. In the absence of any rebuttal from the assessee, w .....

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ear (AY) 2008-09 . 2. The ground of appeal raised by the Assessee reads as under:- On the facts and circumstances of the case, the Learned Commissioner of Income Tax - Appeal was not justified in confirming the addition of ₹ 22,51,148/- being unexplained credit in bank deposit. 3. When the matter was called for hearing, none appeared for the assessee. It is seen from the record that the notice has been served on the assessee by Registered Post intimating the date of hearing. The assessee h .....

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interference with the order of the CIT(A) is called for. 5. We have carefully considered the orders of the CIT(A) appealed against and also the assessment order. We note that the CIT(A) has dealt with the issue in length which is reproduced hereunder:- 2. In this case, AIR information was received that the appellant was maintaining an undisclosed bank account in Axis Bank in which the total amount of ₹ 27,04,907/- had been deposited. In reply to the show cause notice issued by the AO, the .....

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or three days after cash was deposited in the account, cheques were issued for investment in the name of the actual investor. The appellant stated that he was getting commission @1 to 2% which he had offered for taxation in his return of income. 3. The AO did not accept this contention of the appellant on the grounds that the appellant has not given the name and address of the so called investors or any other documentary evidence in support of his claim that the cash received from the investors .....

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stor and earning commission of 1 to 2% from principal agents which he offered for taxation in his return of income. He submitted that as he was a sub agent he was not receiving TDS certificates form the insurance/mutual fund/bond companies. He submitted that the addition of ₹ 27,04,970/- may be deleted or reduced on merits or alternatively the peak credit in the bank account should be brought to tax. 5. I have gone through the submissions of the appellant and the assessment order. It is a .....

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failed to give any documentary evidences that he was earning commission income at 1.5% from the various investors the AO had rightly rejected his plea that his commission income be estimated at 1.5% of the total amount deposited /credited in the said bank account. The appellant had also failed to submit any TDS certificate from insurance/mutual fund/ bond companies on the commission, if any, paid to the appellant. In appeal, the AR of the appellant accepted that he did not have any documentary .....

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issued or from whom cheques and cash were received. In view of the above facts, the appellant s contention that he was working as a commission agent for various mutual funds/bonds and the amount deposited in the bank account represents the actual investor s money cannot be accepted as he has failed to give the name, address & PAN of person whose money he had deposited in his bank account. Hence the appellant s plea that his income be estimated at 1.5% of the total amount deposited/credited i .....

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he amount debited by cheque can be held to be available for rotation only if the appellant can prove that the same amount came back to him for which he has to give the details of debit and credit entries appearing in his bank account. There are two concepts one peak credit and the other maximum balance in the bank account during the year. What the appellant is offering for taxation is the maximum amount outstanding in the bank and not the peak credit balance. The latter can be calculated only if .....

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