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TMI Blog2022 (12) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... rned CIT(A) went wrong in upholding the order passed u/s 154 by which assessee's application for rectification was rejected. He ought to have found that the total amount of income from timber commission business as per the Tribunal's order was Rs 18,53,750 where as the commission income from the said business assessed in the order giving effect to the Tribunal's order would come to Rs.28,53,750/- 2. The learnt CIT(A)ought to have found that the income of Rs 10,00,000 declared as business income outside books in the return of income filed after the date of search with the narration income from timber brokerage commission offered represent income from timber commission business and, as such, would form part of income from such activity determined by the Tribunal at Rs.18,53,750/- 3. The learnt CIT(A)ought to have found that the total addition made by the assessing officer and the amount of addition sustained by the CIT(A) had been challenged in appeals as the income earned from the timber commission business amounting to Rs 10,00,000 was already declared in the return. 2. Facts of the case are that the assessee filed rectification petition dated 11/05 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceedings, the assessee's representative was sought clarifications regarding the seized material VKP-132. The representative's reply is reproduced below: As alleged by you at the time of hearing the sum of Rs.2.06 crores is not my collection income. I have never stated in the sworn statement that this is collection income. This is the total amount drawn by me during the period for advancing to various local timber brokers to enable them to purchase standing trees from local small scale agricultural farmers. I am not dealing in local timber. The books of accounts with you will show that there is no transaction regarding local timber in those books. The advance given for the purchase of local timber to various parties will help me in selling the imported timber for the reason that most of the mill owners need local timber also the availability of which is restricted mostly to Muvattupuzha and Perumbavoor area. The locarbrokers themselves return the money to me in some cases and in other cases they will authorize me to collect. the amount from those mills where they had supply the timber. I had never bought or sold local timber. All the business transactions in VKP-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted. Against this assessee is in appeal before us. 4. We have heard the rival submissions and perused the materials available on record. In this case, the original assessment for the assessment year 2007-08 has been made as follows:- Income returned as per return Rs.27,13,830/- Add: Addition as per para 4.8 Rs.90,00,000 -do- para 5.7 Rs.82,00,000 Rs.1,72,00,000/- Assessed income Rs.1,99,13,830/- 5. The assessee went in appeal before this Tribunal with regard to addition of Rs.56 lakhs sustained by Ld. CIT(A) out of Rs.90 lakhs and the assessee also carried an appeal with regard to sustaining addition of Rs.60 lakhs out of Rs.82 lakhs. The Tribunal given findings with regard to addition of Rs.56 lakhs as follows in ITA Nos.383 384/Coch/2010 dated 9.3.2012:- 28. Now coming to the appeal for assessment year 2007-08, the first issue arises for consideration is estimation commission income to the extent of Rs.56 lakhs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds, the commission for the period of five months, i.e. 150 days which comes to Rs.18,53,751 has to be taken as unaccounted income from commission business. Accordingly, the orders of the lower authorities are modified and the assessing officer is directed to take the commission income at Rs.18,53,751 for the year under consideration. 5.1 Regarding the second issue, the Tribunal given a finding in para 34 of aforesaid order as follows:- 34. We have considered the rival submissions on either side and also perused the material available on record. In the remand proceedings, the assessing officer found that in the bank account of Shri P.A. Abdulla, prior to issue of cheque, an amount of Rs.27 lakhs was found credited. Since the assessee could not explain the source from which the credit of Rs.27 lakhs was made, the claim of the assessee was disallowed. The fact remains is that the deposit was made in the name of Shri P.A. Abdulla. Therefore, the assessing officer ought to have sought the explanation of Shri P.A. Abdulla to ascertain the source of amount deposited. If the explanation was not satisfactory, the addition was to be made in the hands of Shri P.A. Abdulla. Asking t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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