TMI Blog2017 (5) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... cash has withdrawn with a regular intervals and the highest peak of deposits in this bank account of the assessee comes at ₹ 89,332/- on 30/8/2008. The pattern of deposits and withdrawals shows that the income credited in this account was out of the cash transactions of trading activity, therefore, the provisions of Section 44AF of the Act for estimating the income of the assessee on the total deposit of ₹ 20,21,147/- has to be considered. The 5% of deposit of ₹ 20,21,147/- comes to ₹ 1,01,057/-. The peak of the deposits in this account also comes at ₹ 89,332/-, thus the income of the assessee for this period out of these transactions recorded in bank can reasonably and justifiably be estimated at ₹ 1,01 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se are that the Assessing Officer received information through AIR that there was a cash deposit in the savings account No. 0767000100363209 maintained with Punjab national Bank, Jhotwara, Jaipur totaling to ₹ 30,25,940/-. The Assessing Officer asked the source of deposits and the entire credits in the accounts were added as income by invoking the provisions of Section 68 of the Income Tax Act, 1961 (in short the Act). The ld. CIT(A) reduced the addition to 50% of ₹ 20,21,147/- or say ₹ 10,10,573/-. 3. The first ground of appeal is against considering a sum of ₹ 20,21,147/- being the amount deposited by the deceased assessee in his bank account as income from commission. In the first appeal, the ld. CIT(A) has red ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er I find that the assessee expired on 4.9.2008 and therefore addition in hands of assessee can be made only in respect of deposit up to 4.9.2008. Total deposit up to 4.9.2008 is ₹ 20,21,147/-. Further on perusal of 26AS, as mentioned by AO that assessee is also receiving insurance commission. Therefore the receipt can be considered to be a commission income from insurance business conducted by assessee. For earning such commission assessee must have incurred some expenditure and therefore I find it reasonable to estimate Net Profit rate at 50% on the commission receipt of ₹ 20,21,147/- received till death of assessee. On this basis, the income of the assessee works out to ₹ 10,10,573/- which is confirmed. Balance ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded in bank can reasonably and justifiably be estimated at ₹ 1,01,057/-. Thus, this ground of the assessee s appeal is partly allowed. 5. In the ground No. 2 of the appeal, the issue involved is receipt of ₹ 3,632/- as a commission from insurance as reflected in Form 26AS. Since no explanation was furnished in this regard, the same was treated as income from other sources. 6. The ld. CIT(A) has sustained the addition by holding as under:- 6.2 During the appellate proceeding the appellant has filed written submission as under and also argued the case on the same basis. The legal heirs of the assessee are not literate to the extent that they could have verified such amount of ₹ 3,632 and hence it is sincere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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