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TMI Blog2020 (8) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... he Appellant prays to delete the excess addition of 2% estimated by the Hon. CIT Appeals over and above declared by the appellant without any contrary material on record. ITA No.1840/Mum/2019 1. The appellant prays to delete the excess addition of 2% estimated by the Hon. CIT Appeals over and above declared by the appellant without any contrary material on record." 3. This appeal was fixed for hearing for virtual court hearing through the Website of https://itat.webex.com/webappng/sites/ itat/dashboard by putting a notice at ITAT's Website Notice Board but despite that none is present from the assessee's side. Hence, I heard this appeal as ex-parte and will decide this appeal. 4. Both the assessees are individual and filed respective retunes of income for assessment 2005-06. The Assessing Officer noted during the course of assessment proceedings in the case of Mukesh K Gaglani that a sum of Rs. 1,34,62,424/- and in the case of Manish K Gaglani a sum of Rs. 1,25,83,651/- was deposited in the bank account as cash deposit. In the first round of assessment, which was ultimately set aside by ITAT, the Assessing Officer estimated the profit rate at the rate of 15% of the cash entri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... true that an apparent must be considered real until it is shown that there are reasons to believe that the apparent is not the real. In a case of the present kind a party who relies on a recital in a deed has to establish the truth of those recitals otherwise it will be very easy to make self-serving statements in documents either executed or taken by a party and rely on those recitals. If all that an assessee who wants to evade tax is to have some recitals made in a document either executed by him or executed in his favour then the door will be left wide open to evade tax. A little probing was sufficient in the present case to show that the apparent was not the real. The taxing authorities were not required to put on blinkers while looking at the documents produced before them. They were entitled to look into the surrounding circumstances to find out the reality of the recitals made in those documents. 4.1 Therefore, the statement/ letter filed by the assessee stating that he is earning only 1% commission is a self-serving recital and rejected. The CIT(A) in the first round of litigation and the Assessing Officer in the present order have estimated at 5% as profit, which appear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partmental Representative and gone through the facts and circumstances of the case. I noted that the assessee has stated that there are cash withdrawals from banks of Rs. 6,68,550/- and cash deposit to the tune of Rs. 6,60,250/-. From the order of CIT(A) it seems that the CIT(A) has accepted the part explanation of the assessee and treated the amount of Rs. 2,02,000/- and balance amount of Rs. 4,58,250/- as unexplained. The CIT(A) confirmed this amount vide Para 5.2 as under: - "5.2 The commission income of 3% determined as income of the assessee in para number 4.1 above, amounting to Rs. 4,03,873 (includes the income returned 1%by the assessee) is considered available in the hands of the assessee during the year. As the assessee had no other income, part of it say 50% is taken as incurred for meeting the expenses for family. Remaining 50% i.e Rs. 2,02,000 is considered as available in the hands of the assessee for deposit into bank account. The assessee gets relief of Rs. 2,02,000. Now question arises what is the source for the balance Rs. 4,58,250 (6,60,250-2,02,000). The assessee himself accepted in his own cash summary prepared that there is a negative cash balance of Rs. 32, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer. 10. The next issue in ITA No.1840/Mum/2019 is as regards to the order of CIT(A) confirming the action of the Assessing Officer in confirming the addition made under section 68 of the Act of loans received from family members amounting to Rs. 3,44,875/-. For this, assessee has raised the following ground No.3:- "3. The appellant prays to delete the loan from family members amounting to Rs. 3,44,875/- u/s 68." 11. I have gone through the facts and circumstances of the case after hearing the learned Sr. Departmental Representative, I have also gone through the order of CIT(A) at Para 4 which read as under: - "4. Ground No.3 relates to addition of Rs. 6,29,182 being 5% profit on the cash deposits in the bank account. There is no dispute that the appellant maintained a bank account in which deposits of Rs. 1,25,83,651 was found relating to the accommodation entries given by the appellant. As correctly observed by Hon'ble ITAT, the appellant did not file the list of beneficiaries of accommodation entries provided by him during the assessment proceedings. He failed to discharge the onus of proving the entries found in his bank account. During the set aside proce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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