9911796707
TMI Blog2022 (12) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... )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 11/05/2015 stating that the Tribunal had determined his income from Timber Commission Business at Rs. 18,53,751/-. Since the assessee had included Rs. 10,00,000/- as timber commission income in the return of income, the net addition was Rs. 8,53,751/- only. In the order giving effect to the Tribunal's order, the income from timber commission business was taken at Rs.18,53,751/-. The assessee requested for rectifying this. 2.1 The assessment in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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-132 is reflected in my regular books of accounts. The amount drawn by the amounting to 2.06 crores is the gross amount. The major source of this drawings is from the money returned by those brokers who had been given advance. The gross amount used for advancing to timber brokers is only 2.06 crores and not 6.17 crores as alleged by you. It may also be noted that VKP- 132 includes entry tax paid 55.78 lakhs advance given to Mangalapuram Depot Manager ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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. 29. We have heard the ld. representative for the assessee and the ld. DR. The assessing officer made addition of Rs.90 lakhs on the basis of material found for 50 days. However, on appeal by the assessee, the Commissioner of Income-tax(A) estimated the income at Rs.56 lakhs. The Commissioner of Income-tax(A) for the first quarter of financial year 2007-08, i.e. for the period 01-04-2007 to 3006-2006 fixed the income at Rs.11 lakhs and after increasing Rs.2 lakhs in each quarter for the period 01-01-2007 to 31-03-2007, the commission income was estimated Rs.17 lakhs. Accordingly, the total commission was estimated at Rs.56 lakhs by the Commissioner of Income-tax(A) instead of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 the assessee to explain how the deposit was made in the account of Shri P.A. Abdulla may not be justified at all. It is not the case of the revenue that the assessee's funds were deposited in the account of Shri P.A. Abdulla. If the revenue has any material to suggest that the assessee's funds were deposited earlier in the account of Shri P.A. Abdulla, then the matter would have stood on a different footing. In the absence of any material to suggest that the deposit was made earlier merely because the assessee could not explain the source of deposit in the account of Shri P.A. Abdulla that cannot be a reason to disallow the claim of the assessee that the amount was received from Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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