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TMI Blog2023 (9) TMI 1415X X X X Extracts X X X X X X X X Extracts X X X X ..... , as these contra-entries / (cheque dishonour) details were available in the bank statement, which could be examined by the Assessing Officer, during the assessment stage. Therefore, I note that the details of contra-entry/ cancelled cheques were on the file of the Assessing Officer, hence the second inning should not be given to the assessing officer to examine the same facts again. We note that the total credit in the bank statement, after eliminating contra-entries, comes to Rs.23,24,831/-. Therefore, to meet the end of justice an addition at the rate of 5% on total credit in the bank statement may be a reasonable addition in the hands of the assessee. For this, we rely on the judgment of Smt. Krushangi Keyur Bhagat vs ITO [ 2018 (9) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of mistake committed by the consultant of the assessee and since the assessee s consultant has committed the mistake, the assessee should not be penalized. Therefore, I note that ld Counsel has explained the sufficient reasons therefore having regard to the reasons given in the petition, I condone the delay and admit the appeal for hearing. 3. The grounds of appeal raised by the assessee are as follows: 1. On the facts and in the circumstances of the case as well as law on the subject, the learned commissioner of the Income Tax (Appeals) has erred in confirming the action of the assessing officer in re-opening the assessment u/s 147 of the Act and issuing notice u/s 148 of the Income Tax Act. 2. On the facts and in the circu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear (A.Y.) 2010- 11, a total of Rs. 33,65,094/- was found to be credited in the said account. Further, return of income filed by the assessee for the said assessment year (A.Y.) has been perused by the assessing officer and assessing officer observed that the assessee had shown a total turnover of Rs.14,16,654/- for the year under consideration. The turnover shown by the assessee for A.Y. 2010-11 did not commensurate with the total credits/deposits made in the said bank account. During the assessment proceedings, the assessing officer allowed lot of opportunities, however assessee did not submit documents and explanation, Therefore, assessing officer made addition of Rs.33,65,094/- on account of unexplained investments. 5. Aggrieved by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, ld Counsel contended that real addition should be at Rs.23,24,831/-. 8. The Ld. Counsel further contended that it is the mistake of the assessee not to disclose the above said bank account, however the assessee should not be penalized by making addition of all the entries of bank statement, therefore Ld. Counsel argued that a reasonable profit may be estimated on the total credit in the bank account. The Ld. Counsel stated that total credit in bank account is to the tune of Rs.23,24,831/-, and 5% of the same may be reasonable estimate of income. 9. On the other hand, the Senior Departmental Representative (ld. Sr. DR) for the Revenue submitted that assessee has not submitted the details of contra-entry/returned cheques, during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the total credit in the bank statement, after eliminating contra-entries, comes to Rs.23,24,831/-. Therefore, I am of the view that to meet the end of justice an addition at the rate of 5% on total credit in the bank statement of Rs.23,24,831/- may be a reasonable addition in the hands of the assessee. For this, I rely on the judgment of Co-ordinate Bench of ITAT, Surat in the case of Smt. Krushangi Keyur Bhagat vs ITO, in ITA No.2706/Ahd/2015 for AY.2008-09, order dated 26.09.2018, wherein the Tribunal sustained the addition at the rate of 5% of total deposits. The findings of the Coordinate Bench of ITAT, are reproduced below: 7.We have heard the rival submissions and perused the relevant material on record. We find that the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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