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TMI Blog2014 (4) TMI 1103X X X X Extracts X X X X X X X X Extracts X X X X ..... o participated in the auctions. The responsibility cannot be discharged by just explaining that he is carrying on the business of auctioning. An auctioneer is in fact bound to keep meticulous accounts and particulars regarding his auction activities. Inspite of that, the assessee did not produce any details before the assessing authority. The result is that the assessee could not explain to the satisfaction of the Assessing Officer, the source of cash deposited by him in the Vijaya Bank account. The cash deposits reflected in the Vijaya Bank account always remained unexplained. In these circumstances, the only course of action available to the Assessing Officer is to treat those cash deposits as unexplained credits. Therefore, we find th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The relevant assessment years are 1998-99, 1999- 2000, 2000-01, 2001-02, 2002-03, 2003-04, 2004-05 and 2005-06. These appeals are directed against the orders passed by the Commissioner of Income Tax (Appeals)-II at Chennai. The appeal for the assessment year 1998-99 arises out of the assessment completed under Section 143(3) read with Section 147. The assessments for the remaining assessment years, except for assessment year 2005-06, have been completed under Section 143(3) read with Section 153C. The assessment for assessment year 2005-06 has been completed under Section 144 read with Section 153C of the Income-tax Act, 1961. 2. The assessee is an individual carrying on the business of auctioneers under the name and style of Kankaria ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee. The explanation regarding the cash deposits provided by the assessee was that those amounts represented the amounts collected from various bidders. The explanation provided by the assessee before the assessing authority was that whenever he collects money from the bidders, the amounts are deposited in the bank account and when the gold and valuables are released to the bidders on getting entire auction amounts and thereafter the assessee pays the money to the persons whose gold and valuables were auctioned by the assessee. Thus, according to the assessee, his income portion is only the margin/commission earned out of such auction sales. 5. The above explanation offered by the assessee was not acceptable to the Assessing Officer. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... athamban (292 ITR 682) and held that the onus of proving the source of deposits rests on the person on whose name the deposit appears in the bank account and as the assessee was not able to explain the source and furnish such details, the Assessing Officer was justified in making additions in the hands of the assessee. He, accordingly confirmed the additions and dismissed the appeals. The assessee is aggrieved and therefore, these appeals before us. 7. We heard Shri T.N. Seetharaman, the learned counsel appearing for the assessee and Shri T.N. Betgeri, the learned Joint Commissioner of Income Tax, appearing for the Revenue. We heard both sides in detail. 8. As far as the appeal for the assessment year 1998-99 is concerned, the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esented the amounts received from auctioneers, which were subsequently paid to the persons whose gold and valuables were auctioned by the assessee. Therefore, it is the case of the assessee that such amounts cannot be treated as income in his hands as his only income is the margin/commission in the auction proceedings. 11. Theoretically, the explanation of the assessee seems to be okay. But, what is the fact? Inspite of carrying on the business on a large scale, the assessee has not maintained books of accounts. The assessee is also carrying private auctioning business by using the documentation prescribed under Tamil Nadu Pawn Brokers Act, 1943. The assessee has not produced the details of persons who paid cash to the assessee against a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... find that the Assessing Officer has rightly made additions in the hands of the assessee. 13. During the course of hearing, the learned counsel has argued that even if additions were called for, the gross amounts of cash deposits could not be added for the reason that the assessee being an auctioneer, is entitled only for margin/commission. The learned counsel also contended that alternatively the peak amount alone should have been added. But, we are not in a position to accept the above alternative grounds, because the facts of the case do not justify even those alternative grounds. The basic reason for addition is the absence of evidence and details with the assessee to prove the genuineness of the source of deposits. When that is the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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