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TMI Blog2022 (11) TMI 470X X X X Extracts X X X X X X X X Extracts X X X X ..... he has not earned income as reflected in her form 26-AS, the onus shifts of the Revenue authorities to prove such income of such assessee. The addition solely cannot be made by ignoring the submission of assessee. AO was not justified in absence of bringing any cogent evidence to make such addition of alleged profit, when the assessee specifically denied his involvement in the transaction of Multi National Commodity Exchange and has furnished his bank statement showing that there is no such credit in his books. Hence, we direct the Assessing Officer to delete the addition of alleged bogus profit. Appeal filed by the assessee is allowed. - ITA No. 1/SRT/2022 - - - Dated:- 27-10-2022 - Shri Pawan Singh, Judicial Member For the Appellant : Shri Deepak Bhatia, AR For the Respondent : Shri Ashok B. Koli, CIT-DR ORDER UNDER SECTION 254(1) OF THE INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [in short NFAC ) or CIT(A) ], dated 12/11/2021 for the Assessment Year (AY) 2011-12, which in turn arises against assessment order passed by the Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch information, the Assessing Officer made his belief that income of assessee to that extent has escaped assessment. The notice under section 148, dated 31.03.2018 was issued to the assessee. The Assessing Officer recorded that despite services of notice under section 148, the assessee has not filed any details. Again in para 3 of assessment order, the Assessing Officer recorded the assessee filed return of income on 23.11.2018, declaring total income of Rs.1,77,900/-. The reasons recorded were also provided to the assessee. The Assessing Officer after serving notice under section 143(2) and 142(1) called certain information, wherein the assessee was asked to furnish copy of return of income, bank account statement, and balance sheet as on 31.03.2011. The assessee in his reply submitted that he has not done any commodity transaction during the year under consideration. The Assessing Officer was of the view that details available on record, and as per the information from DGIT, Ahmedabad, the assessee was engaged in commodity transaction. The Assessing Officer by referring the modus operandi of such commodity that transaction held that M/s. Jet Air Agencies Private Limited, which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d address. The assessee sought to resort to deny and nothing more. The assessee was obliged to discharge the burden cast upon him by furnishing evidence of his non-involvement in the transaction. The assessee was under obligation to prove that entries appearing against his name do not in fact pertains to him and he is not liable for such consequence. Further aggrieved, the assessee has filed present appeal before this Tribunal. 6. I have heard the submission of ld. AR of the assessee and the Learned Senior Departmental Representative (ld. Sr. DR) for the Revenue and have gone through the order of lower authorities below. The ld. AR of the assessee submits that during the assessment proceeding, the Assessing Officer asked to furnish copy of bank account statement, balance sheet and return of income. The assessee furnished all such complete details vide his reply dated 23.11.2018. The assessee specifically stated that he has not done commodity transaction during the assessment year. The assessee again vide his reply dated 07.12.2018, contended that assessee has not dealt with Jet Air Agencies Private Limited as well as Anand Prakash in AY.2011-12 to earn commodity profit of Rs.3,9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee has not furnished the require details. On the other hand, in para no.3, the Assessing Officer recorded that return in response to notice under section 148 was filed on 23.11.2018, declaring total income of Rs.1,77,900/-. The Assessing Officer further recorded that assessee furnished return of income from bank account statement and balance sheet as on 31.03.2011. the Assessing Officer nowhere recorded that what else, was required from the assessee, which was not furnished/filed before him. I noted that in para no.4 of the assessment order, the Assessing Officer recorded general information regarding the modus operandi of tax evasion made by misuse of Multi National Commodity Exchange, in para no.5, the Assessing Officer mentioned apparently the fact in other cases, the bogus profit of Rs.7,22,450/- by bogus commodity trading of Rs.2,54,17,100/- is recorded. Ultimately in para no.6.1 of assessment order, the Assessing Officer held that in absence of explanation/details, the profit of Rs.3,96,370/- was added as unexplained cash credit. The Assessing Officer nowhere recorded that any investigation was carried out or any enquiry was made from the investigation conducted by official o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in view of said decision, the burden was on the department to show that the amount of demand drafts found to be credited in the assessee s account in the books of account of GMDC belonged to the assessee by bringing proper evidence on record and the assessee could not be expected to explain the source of income or to call responsible officers of the GMDC or bank to discharge the burden that laid upon the department. 12. I further find that in case Dr. Swati Mahesh Vinchurkar vs DCIT (supra), the Division Bench of Surat Tribunal also took view that once assessee denied that she has not earned income as reflected in her form 26-AS, the onus shifts of the Revenue authorities to prove such income of such assessee. The addition solely cannot be made by ignoring the submission of assessee. 13. In view of the aforesaid factual and legal position, I am of the view that Assessing Officer was not justified in absence of bringing any cogent evidence to make such addition of alleged profit, when the assessee specifically denied his involvement in the transaction of Multi National Commodity Exchange and has furnished his bank statement showing that there is no such credit in his books. He ..... X X X X Extracts X X X X X X X X Extracts X X X X
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