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TMI Blog2016 (5) TMI 466X X X X Extracts X X X X X X X X Extracts X X X X ..... ned CIT (A) has erred in confirming the action of Assessing Officer in making addition of Rs. 1,97,871/- on estimated basis @ 10.55% of the turnover of Rs. 18.75.554/- not belonging to the assessee. 2. It is therefore prayed that the above addition made by Assessing Officer and confirmed by Commissioner of Income-tax (Appeals) may please be deleted. 3. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal. 2. Briefly stated facts as culled out from the assessment records are that assessee is an individual engaged in the business of textile and cheque discounting under the name and style of M/s Dhami Corporation. Return of income was filed on 28.3.2008 declaring total income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee and the income was assessed at Rs. 4,39,630/-. 3. Aggrieved, assessee went in appeal before ld. CIT(A) who partly allowed the appeal of assessee by deleting addition of Rs. 3,392/- and Rs. 96,000/- and sustained the addition of Rs. 1,97,871/-. 4. Aggrieved, assessee is now in appeal before the Tribunal. 5. Ld. AR submitted following in relation to 1. addition of Rs.l,97,87l/- being estimated Net profit @ 10.55 % on turnover of Rs. 18,75,554/- in the impugned bank account : A) The appellant was engaged in the cheque discounting business. He has shown the cheque discounting income in the Return of income filed by him for the year under consideration. B) The learned ITO has wrongly added Rs. l,97,871/- being the estimated Net ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vit was wrong and baseless. F) The appellant had also filed the affidavit of Vishnukumar Agrawal who had stated and confirmed therein that he lended this account to the appellant for carrying out the cheque discounting business only. The said Vishnu kumar Agrawal had never operated the said bank account for his own business. He carried out his business of textile and yarn brokerage only. G) The learned ITO in para 4.3 of the AO stated a wrong fact that the said Vlshukumar Agrawal had confirmed that the account belonged to him and not to the appellant. On the contrary he confirmed that he lended the account to the appellant to carry out cheque discounting business by the appellant. The appellant had also stated the same facts in his repl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entions and perused the material on record. Assessee has challenged the action of ld. CIT(A) in confirming the addition of Rs. 1,97,871/- which was calculated by the ld. Assessing Officer by applying 10.55% net profit rate on the total turnover shown at Rs. 18,75,554/- in the bank account operated by assessee but held in the name of Mr. Vishnu kumar Agarwal. We observe from the record that Vishnukumar Agarwal has given an affidavit submitting that he has lent the bank account to the assessee for operating his cheque discounting business to this account and assessee has also accepted during the course of assessment proceedings that transactions entered into in the impugned bank account in the name of Vishnu kumar Agarwal belongs to him which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he cheques have been deposited in regular intervals and money has been withdrawn by cash from that account. Had it been a genuine cheque discounting business then the amount withdrawn by cash would have been marginally less than the amount deposited by cheque to take care of the commission involved. However, in the case of the appellant, it is seen that there is no such co-relation between the cheque deposited and the cash withdrawn. For instance on 12th July, 2006 there are two deposits of Rs. 64,745/- and Rs. 65,000/- by cheque in this bank account but the cash withdrawn on that date is only Rs. 60,000/-. Similarly, on 17th July, there are cheque deposits of Rs. 55,273/-, Rs. 69,000/-, Rs. 98,020/- but the amount withdrawn by cash on that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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