2013 (1) TMI 909 - AT - Income Tax

Summary

Issues involved: Assessment of undisclosed bank account deposits u/s 68 of the IT Act for assessment year 2007-08.

Summary:
1. The assessee, a commission agent, declared total income of &8377; 1,55,820/- for the year. The AO added &8377; 15,58,100/- as unexplained cash deposits in the bank, initiating penalty proceedings.
2. The assessee argued that total bank credits should be considered turnover, proposing a 5% profit estimation. The CIT(A) restricted the addition to &8377; 15,32,778/-, partly allowing the appeal.
3. The Tribunal analyzed the bank statement, noting an erosion of capital and commission income. It sustained an addition of &8377; 11,40,000/-, considering peak credit and personal expenses paid, differing from the CIT(A)'s decision.
4. The appeal was partly allowed, with the Tribunal's order pronounced on 11-01-2013.