TMI Blog2020 (8) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... is issue are partly allowed. Addition of unexplained cash credits u/s 68 - HELD THAT:- Main plea of the assessee that there are cash withdrawals from the bank of ₹ 6,68,550/- as against which cash deposit made is ₹ 6,60,250/-. This needs verification. As now assessee is not present, let this issue be restored back to the file of the Assessing Officer for re-examination of the issue. Needless to say, that the assessee will file the details of bank withdrawals and will co-relate with the cash deposit made in the bank account. In term of this, this issue is restored back to the file of the Assessing Officer. Unexplained cash credit - CIT(A) allowed the benefit of the income determined of commission added at 3% and thereby restricted the addition at ₹ 2,53,290/- - HELD THAT:- Departmental Representative supported the order of CIT(A) but from the orders of the lower authorities it is clear that only the pending balance and cash explained are not in the chart giving the details of cash withdrawals along with date wise cash deposit in corporation bank. That this needs verification at the level of the Assessing Officer. Hence, the matter is remitted back to his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 1,34,62,424/- and in the case of Manish K Gaglani a sum of ₹ 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 entries deposited. The CIT(A) estimated the profit rate at the rate of 5% in the first round. The assessee as well as Department, in first round, filed an appeal before ITAT and ITAT set aside the matter to Assessing Officer denovo and directed the assessee to file evidences to support his claim that he is engaged in the business of accommodation entries. In second round, the Assessing Officer estimated the profit rate at the rate of 5% of the cash deposit in the bank account in both the cases as against declared by assessee at 1%. The CIT(A) directed the Assessing Officer to restrict the estimation at 3% as against estimated by the Assessing Officer at 5% vide Para 4 and 4.1 as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 appears to be higher side for a commission on entries. Keeping in view the facts, the profit on the alleged accommodation entries is directed to be estimated at 3% on the total credits in the bank account. The appellant gets part relief. Ground No.3 is partly allowed. Aggrieved, now assessee is in appeal before Tribunal. 5. I have heard the matter in both the cases by hearing the learned Sr. Departmental Representative and gone through the case records. It is noticed that the assessee even in second round could not file the list of beneficiaries of accommodation entries provided by him during the assessment proceedings or before CIT(A). Even now, the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... des 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 ₹ 2,02,000 is considered as available in the hands of the assessee for deposit into bank account. The assessee gets relief of ₹ 2,02,000. Now question arises what is the source for the balance ₹ 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 ₹ 32,050, which he wanted offer to tax. However, for the reasons discussed above the assessee could not explain the source for the cash deposited convincingly, particularly in view of the fact that the assessee did not show any personal or family expenditure. Therefore, the addition of ₹ 4,58,250 made by the AO is confirmed. Assessee gets part relief. Ground No. 4 is partly allowed. 8. I am of the view, after hearing the learned Sr. Departmental Representative that the main plea of the assessee that there are cash withdrawals from the bank of ₹ 6,68,550/- as against which cash d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ative, 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 ₹ 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 ₹ 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 proceedings also the assessee did not file any details of the persons to whom the entries were given by him. lie only filed copy of letter filed earlier wherein he merely stated that he provided entries and earned commission at 1%. This statement cannot be accepted as gospel truth. Any number of oath or statements filed cannot take the place of evidence. By depositing the cash and giving others cheque, the assessee caused huge loss to the revenue, as the beneficiaries brought the said amounts into their books without paying tax. Further, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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