9911796707
TMI Blog2021 (2) TMI 742X X X X Extracts X X X X X X X X Extracts X X X X ..... orm of commission as agent of Life Insurance Corporation of India (LIC). For Assessment Year 2010- 11, the assessee filed return of income declaring total income of Rs. 3,94,130/-. In the course of assessment proceedings, the AO scrutinized the details of the credit in the bank statement of the assessee with SBM, Holenarasipura Branch which was furnished by the Manager of SBM, Holenarasipura Branch in response to a notice issued by the AO calling for the details. On perusal of the reply of the Manager SBM, Holenarasipura Branch, the AO found that some of the credit entries had a description "NSC commission received from Post Master, Holenarasipura". According to the AO, the assessee could not explain the credits in the form of NSC commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessee that the credits appearing in his bank account towards amounts received from the Post Office, Holenarasipura represented the maturity proceeds of Savings Certificates of his customers and accordingly, ought to have refrained from making addition of such credits under section 60 of the Act. Without prejudice to the above, it was contended that the AO erred in making the addition of Rs. 45,500 in respect of the credit appearing in the bank account on 1.3.2010 being the amount transferred from the state bank of Mysore, Doddaballapur Branch. Without prejudice to the above, it was contended that the AO ought not to have made the addition of Rs. 65,000 in respect of the credit appearing in the bank account on 20.3.2010 being the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accounts of the assessee. It was submitted that the bank statement cannot be considered as books of accounts and consequently the addition made under section 68 of the Act cannot be sustained. It was also submitted by him that the Tribunal cannot take recourse to the provisions of section 69A of the Act and in this regard relied on the decision of Hon'ble Allahabad High Court in the case of Smt. Sarika Jain Vs. CIT 407 ITR 254 (Allahabad) wherein the Hon'ble High Court took the view that the Tribunal does not have the power to change the addition made under section 68 of the Act and sustain addition under section 69A of the Act. Learned DR on the other hand submitted that the Hon'ble Karnataka High Court in the case of Fidelity Business Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- being the credit appearing in the bank account as on 03.04.2010 is a credit appearing in the books of accounts of the assesseee of the previous year relevant to Assessment Year 2010-11 and therefore this addition cannot also be sustained and the same is also directed to be deleted. With regard to other credits, the issue is remanded to the AO for considering afresh as the CIT(A) has not adjudicated the issue and the issue requires verification at the AO's end. The AO is directed to afford the assessee right to cross-examine the persons from whom the AO received information and based on which he made the impugned addition. The AO will afford opportunity of being heard to the assessee. 8. The next issue that arises for consideration is th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... king the disallowance of 40% of the expenditure claimed by the appellant. Having regard to the nature of business carried on by the appellant and the quantum of commission received by him, the expenditure of Rs. 8,86,479/- clamed by the appellant is fair and reasonable. The AO ought not to have disallowed 40% of the expenditure to Rs. 3,54,592/- in the facts and circumstances of the case. The assessing officer has made the above addition since the assessee could not furnished any details in support of the expenses claimed during the scrutiny proceedings. The appellant has not furnished any evidences in support of his claim even during the appellate proceedings before me. Therefore, the addition made is hereby upheld." 10. It is clear from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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