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TMI Blog2017 (1) TMI 1728X X X X Extracts X X X X X X X X Extracts X X X X ..... ank accounts which required to be verified and ascertained at the level of AO. All this has happened due non cooperation by the assessee during the assessment proceedings. - Restore the issue back to the file of the AO to make the assessment afresh as per law and facts after providing reasonable opportunity of hearing to the assessee to present his case. Assesssee is also to cooperate in the assessment proceedings and to file all the documents and information may be required by the AO to determine the income of the assessee. Appeal of the assessee is allowed for statistical purposes. - I.T.A. No. 7766/Mum/2014 - - - Dated:- 16-1-2017 - SHRI AMIT SHUKLA, JM AND SHRI RAJESH KUMAR, AM For the Appellant : Shri Prakash Jhunjhunwala ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or his authorized representative appeared before the AO to attend the hearing and finally, the AO had to frame the assessment ex-partee u/s 144 r.w.s. 147 of the Act assessing he income of the assessee at ₹ 1,83,74,770/-by making an additions of ₹ 1,82,65,691/- being 1% of total cash credit in the all the bank accounts of the assessee and his proprietary concerns M/s Darshan Trading Co., M/s Ratan Enterprises and M/s Jayesh Corporation which were ₹ 1,82,65,69,168/- representing total accommodation entries issued by the assessee by relying on the decision of the Tribunal in the case of P C Mundra V/s ACIT (80 TTJ(JP) 945). 5. Aggrieved by the order of the AO, the assessee preferred an appeal before the first appellate au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of billing business. The AO has not given any valid reason to deviate from the rate adopted by the Hon,ble ITAT which case was relied upon by him. The AO himself has concluded that the rate at prevailing market practice as in most of the cases of hawala operators, the charging of commission on the sum of transactions between @ 0.5% to 2.5% only. In view of the decision followed by the AO and the huge credits in the various banks of the appellant for which no proper explanation was offered by the appellant regarding the sources of those transactions, the rate of net profit adopted by the AO has to be enhanced accordingly. Moreover, the total cash credits and the bank accounts were also not disclosed to the department. There is no an iota ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts of the assessee. In defence of his arguments , the ld.AR referred and relied on the decision of Co-ordinate Bench of the Tribunal in the case of Ramesh Kumar Jain V/s ACIT I ITA No.3512 and 3513/Mum/2013 (AY-2004-05 and 2005-06) dated 22.4.2015 wherein the net commission income has been estimated at 0.10%. 7. On the contrary, the ld. DR relied heavily on the order of authorities below and submitted that the assessee was not co-operative throughout the assessment proceedings and the AO has to rely on the documents and material available with him and estimated the income at the rate of 1% which was enhanced by the FAA to 1.5% by the ld.CIT(A) and the decision relied upon by the AO in the case of P.C Mundra (supra) was not applied corre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at there can not be any income on unpaid or returned cheques/RTGS/inter bank transfers in assessee s banks. In our view the income of the assessee has to be calculated on the basis of correct amount of credits appearing in the bank accounts which required to be verified and ascertained at the level of AO. We would like to mention that all this has happened due non cooperation by the assessee during the assessment proceedings. We therefore consider it fit and proper to restore the issue back to the file of the AO to make the assessment afresh as per law and facts after providing reasonable opportunity of hearing to the assessee to present his case. The assesssee is also to cooperate in the assessment proceedings and to file all the documents ..... X X X X Extracts X X X X X X X X Extracts X X X X
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