TMI Blog2021 (2) TMI 742X X X X Extracts X X X X X X X X Extracts X X X X ..... Allahabad High Court in the case of Smt. Sarika Jain[ 2017 (7) TMI 870 - ALLAHABAD HIGH COURT] and has upheld powers of Tribunal in an appeal as encompassing very wide range. On merits on the addition made by the AO addition to the extent which is a credit appearing in the bank account as on 01.03.2010 cannot be sustained as the same is an amount transferred from SBM, Doddaballapur Branch. Credit to this extent stands explained and addition to this extent is directed to be deleted. As far as addition being an entry appearing in the bank account on 23.03.2010 being the amount received from C. D. Padmanabha, the issue has to be examined afresh by the AO and the assessee has to explain the nature of this credit. Similarly, addition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... N. V VASUDEVAN , VICESIDENT : This is an appeal of the assessee against the order dated 26.07.2019 passed by CIT(A), Mysore, relating to Assessment Year 2010-11. The first issue that arises for consideration in this appeal is as to whether the Revenue authorities were justified in making an addition of ₹ 7,39,381/-. 2. The assessee is an individual. He derives income in the form of commission as agent of Life Insurance Corporation of India (LIC). For Assessment Year 2010- 11, the assessee filed return of income declaring total income of ₹ 3,94,130/-. In the course of assessment proceedings, the AO scrutinized the details of the credit in the bank statement of the assessee with SBM, Holenarasipura Branch which was furnished ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elating to the cheques issued by him in favour ot the Assessee before making the addition under section 60 of the Act. It was argued that the AO failed to appreciate that it has beyond probabilities for the appellant to have received such huge sum of ₹ 7,39,381 towards commission from the Post Office, Holenarasipura. The Assessee contended that the AO ought to have accepted the explanation offered by the Assessee that the credits appearing in his bank account towards amounts received from the Post Office, Holenarasipura represented the maturity proceeds of Savings Certificates of his customers and accordingly, ought to have refrained from making addition of such credits under section 60 of the Act. Without prejudice to the above, it w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) however without making any reference to the aforesaid ground of appeal with regard to addition of ₹ 7,39,381/- dismissed the appeal of the assessee. 5. Learned Counsel for the assessee submitted that the impugned addition was made by the AO by invoking provisions of section 68 of the Income Tax Act, 1961 (hereinafter called the Act ). For application of Sec.68 of the Act, credit entry should be found in the books of accounts of the assessee. It was submitted that the bank statement cannot be considered as books of accounts and consequently the addition made under section 68 of the Act cannot be sustained. It was also submitted by him that the Tribunal cannot take recourse to the provisions of section 69A of the Act and in this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same is an amount transferred from SBM, Doddaballapur Branch. Credit to this extent stands explained and addition to this extent is directed to be deleted. As far as addition of ₹ 65,000/- being an entry appearing in the bank account on 23.03.2010 being the amount received from C. D. Padmanabha, the issuehas to be examined afresh by the AO and the assessee has to explain the nature of this credit. Similarly, addition of ₹ 1,51,738/- being the credit appearing in the bank account as on 03.04.2010 is a credit appearing in the books of accounts of the assesseee of the previous year relevant to Assessment Year 2010-11 and therefore this addition cannot also be sustained and the same is also directed to be deleted. With regard to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 8,86,479/- therefrom. There was no dispute about the fact that the expenditure has been incurred by the appellant to earn the commission. In fact, the AO has in the assessment order stated that expenses on account of travel, printing postage, electricity charges, etc., are not ruled out. However, he has disallowed 40% of the expenditure claimed by him amounting to ₹ 3,54,592/-. The disallowance has been Made on an estimate basis. No reasons have been adduced for making the disallowance of 40% of the expenditure claimed by the appellant. Having regard to the nature of business carried on by the appellant and the quantum of commission received by him, the expenditure of ₹ 8,86,479/- clamed by the appellant is fair and reasonab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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