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TMI Blog2012 (8) TMI 486X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on the basis of the peak credit statement submitted by the assessee during the course of the appellate proceedings is to be accepted as held in assessee's own case in A.Y. 2002-03 - the entire cash deposit for the year under consideration cannot be added as deemed income of the assessee and at the most the peak deposit in all the bank accounts taken together should be taken for the addition u/s. 68 - restore this issue back to the file of the AO directing to verify the peak deposits of all the bank accounts together - partly in favour of assessee. - I.T.A. No. 5142/Mum/2009 - - - Dated:- 29-6-2012 - SHRI D.K. AGARWAL AND SHRI N.K. BILLAIYA JJ. Appellant by : Shri Dharmesh Shah Respondent by : Smt. Kusum Ingale O R D E R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs. 1,75,90,800/- in Savings Bank A/c maintained with UTI Bank. The assessee was once again asked to explain the nature and source of total cash deposit of Rs. 2,29,41,100 (Rs. 53,50,500/- + Rs. 1,75,90,800/-). Again there was no compliance on the part of the assessee. Thereafter, the AO issued summons u/s. 131, in response to which the assessee attended the proceedings. The AO recorded the statement of the assessee seeking explanation in relation to the cash deposit made in the savings bank account of his daughter and himself. In response to the specific question, the assessee replied that the total receipts of Rs. 2,29,41,100/- are not related to his business and therefore not disclosed in the regular books of account. The assessee admi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that for the year under consideration total cash deposit was to the tune of Rs. 4,81,91,420/-. On further enquiry made by the AO in relation to the beneficiaries of this accommodation provided by the assessee, the AO concluded that the beneficiaries were not traceable and as the burden of proof was solely on the assessee to prove the source of sum of money deposited in bank and as the assessee could not satisfactorily explained the source of deposits, the AO went on to make addition of Rs. 4,81,91,420/- u/s./ 68 of the I.T. Act. 6. The assessee agitated this addition before the Ld. CIT(A) and reiterated his submission that he was only accommodating Shri Jatin Shah and he has no knowledge of the source of cash deposited in his bank a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it has been found that either these parties were not available at the given addresses or where they were available, they have not disclosed the respective bank accounts in which the cheques issued by Shri Jayesh V Mehta have been cleared. All these parties confirmed that they were merely commission agents discounting these cheques issued by Shri Jayesh V Mehta. According to the AO, the assessee once again failed to establish the identities of the actual beneficiaries and the onus still vested with the assessee to show that cash deposited by him does not belong to him. The Ld. CIT(A) confronted the remand report to the assessee and allowed him an opportunity to reply against the said remand report. After considering the submissions and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the books of the assessee and therefore additions made u/s. 68 are against the facts of the case as there was no unexplained cash credit found in the books of the assessee. 10. The Ld. Departmental Representative on her turn relied upon the findings of lower authorities and submitted that the initial onus was on the assessee which has not been discharged and therefore there is no error in the findings of the Ld. CIT(A). 11. We have heard the rival submissions and have perused the orders of lower authorities and also the Paper book submitted by the assessee in the appellate proceedings. The facts which are not in dispute is that the cash was actually deposited in all the bank accounts as mentioned hereinabove. It is also not in dispu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... verifying, the AO is directed to make the addition of the peak deposits so determined after giving reasonable opportunity of being heard to the assessee. 12. However, in all fairness, we direct the AO to compute the profit of the assessee from such Hawala business at the rate of 0.5% of the entire cash deposited i.e. Rs. 4,81,91,420/- during the year under consideration as before ADIT (Inv) the assessee has stated that he has received only Rs. 1,50,000/- for providing accommodation transactions to the extent of Rs. 5.12 crores. However, this appears to be minimum amount as compared to the volume of transactions. Therefore, the AO may assess the correct income accordingly. 13. In the result, the appeal filed by the assessee is party a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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