TMI Blog2023 (1) TMI 914X X X X Extracts X X X X X X X X Extracts X X X X ..... passed by the Income Tax Officer, Jaisalmer passed under Section 143(3) of the Income Tax Act, 1961 (in short 'the Act') dated 17.12.2019. 2. The assessee has raised the following ground:- 1. That on the facts and in the circumstances of the case the ld. CIT(A) erred in violating the principal of faceless appeal as announced for justice of honest taxpayers and the functioning of faceless processing s in honesty and judicially manner and to avoid litigation as created unnecessary by AO. 2. That on the facts and in the circumstances of the case the ld. CIT(A), NFAC erred in upholding the validity of order passed by the ld. AO. 3. That on the facts and in the circumstances of the case the ld. CIT(A), NFAC grossly erred in invoking provision of section 69 of the Act by substituting the provisions of section 68 of the Act as applied by ld AO. 4. That on the facts and in the circumstances of the case the ld. CIT(A)NFAC erred in sustaining addition of Rs. 1,59,789/- in respect of cash deposited in bank account particularly when the nature and source of such cash deposits had been explained with evidences. 5. That on the facts and in the circumstances of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee has concealed the particulars of income, therefore, penalty proceeding u/s 271(1)(c) of the IT Act, 1961 is initiated. 5. Being aggrieved by the AO the assessee preferred an appeal before the ld. CIT(A) and the findings are reproduced as under:- 7 I have carefully considered the facts of the case the assessment order and the written submission of the assessee. The case of the assessee was selected for scrutiny for verification of large cash deposits in savings bank accounts. During the course of the assessment proceedings, the assessee explained that the cash deposits made in the savings bank accounts represent the LIC premium collected from policy holders in cash and deposited in the bank accounts for transferring the same to LIC, in his capacity as an authorised cash collector on behalf of LIC of India. The assessee furnished the authorisation letter issued by LIC of India in support of the said explanation. The assessee also furnished the details of premium amounts collected and paid by him, as available in the Premium Collection Portal of the LIC. However, the details available in the portal do not contain the names of the policy holders who paid the premium ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he tune of Rs 11.59 789/-, which is in excess of cash balance available in the cash book Hence, it is held that the said amount is liable for addition u/s 59A of the Act as unexplained money. 10 In view of the foregoing discussion, the addition of Rs.11.59.789/- made in the assessment order towards unexplained cash deposited in the bank accounts is hereby sustained. These grounds of appeal are accordingly dismissed. Ground No.5 Levy of interest u/s 234A, 234B and 234C 11 In this ground of appeal, the assessee has disputed the action of the AO in charging interest u/s 234A, 234B and 2340 The assessee did not furnish any contentions in respect of this ground of appeal during the appellate proceedings. The levy of interest under these sections is mandatory on satisfaction of the conditions specified in the respective sections. The assessee did not point out specific mistakes that occurred in computation of interest under these sections. This ground of appeal is accordingly dismissed Ground No.6 Initiation of penalty proceedings 12 In this ground of appeal, the assessee has disputed the action of the AO in initiating penalty proceedings u/s 271(1)(c) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was given to the assessee subsequently by such customers. From the bank statement bearing a/c No. 10973588308 your good self had found that the assessee had transferred the amount as a premium on behalf of customer out of commission income received from the LIC. Further whenever the customer had given such premium amount to the assessee, the assessee had deposited same in the bank account. c] From the bank statement bearing A/c No. 20064495080, 35371148355 your honour will observed that entire cash deposits and amount transferred from other account of assessee were utilized for making payment to LIC no other transaction in such bank account and same was also verified from the premium collection account issued by the LIC. Further the assessee has explained before the Ld AO that what so ever amount deposited in his bank account was belonging to his client as the assessee is only acted as an agent between the client and LIC and in lieu of providing such services he has obtained Commission income of Rs. 5,51,109% which is duly disclosed in the return of income and also accepted by the Ld AO as genuine. d] Further it is relevant to mention that the assessee had authorized to coll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO had accepted the same while passing the assessment order u/s 143(3) of the Act. g] When the Ld AO one hand accepted the income from commission as genuine and other hand the amount so received from customer on behalf of LIC treated as not genuine u/s 68 is contrary to the principle of natural justice and also contrary to the decision of I.T.A.T Jodhpur Bench in case of ITO V/s M/s. Ashok Transport Co. ITANo.336/Jodh/2018 DATED 10.05.2019 held that: We note the entire turnover on transportation of Rs.11,70,63,030/- has been accepted by the AO as genuine, so question of addition of the sum of Rs.78.22.863/- which represented the liability to pay the truck owners by assessee cannot be added us. 68 of the Act. Therefore, we do not find any infirmity in the order of the CIT(A) and we agree that section 68 of the Act was wrongly invoked in the present case in respect of the outstanding liability payable by the assessee to the truck owners. In the light of above facts and judicial decision, I request your honour to kindly delete the addition and oblige. 7. Now the assessee is in appeal. 8. The ld. DR relied on the orders of the lower authorities. 9. We have heard both th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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