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TMI Blog2024 (4) TMI 932X X X X Extracts X X X X X X X X Extracts X X X X ..... ization was transferred to other accounts as is apparent from the transactions appearing therein. Thus, when the assessee has is not directly benefit for cash deposit by making any personal investment but has transferred the money for services he rendered to the party whose service are availed and the commission arising out of that activity was already taxed in the hands of the assessee. The bench also noted that the activities of the assessee are genuine based on the fact that during the period of two months of demonetization the assessee had deposited only Rs. 27,500 as SBN out of total deposit of more than 56 Lacs and there is no allegation against the assessee that the assessee had deposited amount in SBN. Based on the discussion so recorded and evidences in the form of form no. 26AS bank statement and TDS deducted on commission the cash deposited by the assessee cannot be taxed u/s. 69A of the Act. Appeal of the assessee is allowed. - Dr. S. Seethalakshmi, JM And Shri Rathod Kamlesh Jayant Bhai For the Assessee : Sh. Mukesh Khandelwal (CA) For the Revenue : Sh. Monisha Chaudhary (Addl. CIT) ORDER PER: RATHOD KAMLESH JAYANTBHAI, AM The present appeal arises on account of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in his ITR filed for the relevant period. In support of his claim, he has furnished copy of bank account, daily transaction summary, payment sheet of M/s Aksh Optifibre Ltd., details of cash deposits during December along with copy of deposit slips for verification. He has further stated that during the demonetization period, the assessee has deposited total cash of Rs. 56,01,800/-, He furnished the details that during the month of November-2016, amount of Rs. 5,44,512/- and in December-2016 amount of Rs. 28,19,777/- was collected in cash, from customers for payment of electricity / PHED bills and university fee payment. He has also explained that In December-2016, he has deposited amount of Rs. 35,13,200/- out of which SBN was only Rs. 27,500/- Other than M/s Aksh Optifibre Ltd., he is also authorized agent of M/s Nova Pay Solutions and M/s Pay Point India. He has filed the copy of statement of Nova Pay for the month of December only. He has not filed any details regarding that for which purpose the cash was collected, from whom such cash was collected. Therefore, in absence of the full details, the source of such deposits cannot be acceptable. As, the assessee has produced / furn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as claimed that the nature of work is identical in both the cases. During the assessment proceedings, the appellant could not provide complete details of source of money collected from the customers, which was further deposited by the appellant in his bank account. The Id. AO has pointed out that the appellant did not provide the details of customers and the purpose of the money deposited by them. During the appellate proceedings too, the appellant has uploaded a ledger account wherein debit and credit transactions are reflecting but complete name of the customers and other details mainly the purpose of the money deposited has not been provided. Thus, I am of considered opinion that the appellant has failed to explain the source of cash of Rs. 22,37,511/- deposited in his bank account during the demonetization period. Therefore, the ground of appeal on this issue is dismissed and not allowed. 5. The ground no. 2 3 of the appeal are against the initiation of penalty proceedings u/s 271AAC(1) 271A(1)(d) respectively. The initiation of these penalty proceedings are related to the addition made by the Id. AO u/s 69A which has already been upheld, thus, these grounds of appeal are also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was deposited and hence he taxed this sum of Rs. 22,37,511/- as unexplained credit of the assessee u/s 69A. Order of the ld. CIT (A) : An appeal was preferred against such order of the ld. AO wherein also he sustained the action of the ld. AO on the same logic. Submissions before the Hon`ble Bench : The appellant has placed following documents in support of his contention about genuineness of the cash deposit :- 1. Form 26AS (APB 6-9) 2. Summary of form 26AS (APB 10) 3. Transaction statement with Novapay Solutions (APB 96-99) 4. Agreement with Novapay Solutions (APB 94-95) 5. Bank account statements of the assessee (APB 11-92) From the above documents it is amply proved that the assessee was engaged into the business of depositing utility bills and booking for hotels, railway tickets, money transfer, mobile recharge etc. against which he was paid commission by the respective companies and from customers also. Since the matter in this case revolves towards cash deposit in bank accounts during two months of demonetization only and hence the analysis of commission receipt during these two months is as under :- SN Name of Party Commission TDS 1. EBIX Travels P Ltd. 400.00 20.00 2. Nova ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpanies other than Aksh Optifibre) was earned during the period of two months of demonetization. Even if we assume a bare rate of 1% on the transactions of hotel booking, ticket booking, mobile recharge, money transfer etc. carried by the assessee during these two months a sum of Rs. 19.90 Lacs stand verified and for rest of the amounts for which no TDS was deducted and the commission charged from customers balance deposit may be considered as reasonable and the addition so made by ld. AO may pleaser be deleted. 6. Since the business quantum in terms of earning was very small, the assessee did not maintain any books of account having details about the persons whose money and for what purpose he took the money and where this amount was remitted. However an exercise has been carried with the transaction details as provided by Novapay company during the period from 16.12.2016 to 31.12.2016 which is enclosed at APB 100 101. This analysis shows that during this period the assessee had deposited Rs. 21,14,100 through his bank accounts (wherein also money had been deposited in cash) and there from he transferred a sum of Rs. 21,19,792 to various person as detailed in the analysis. Althoug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to M/s. Aksah Optifibre is not under dispute and therefore the commission income based on that cash deposit and then transferred to M/s. Aksah Optifibre cannot be added in the hands of the assessee. 8. The ld DR is heard who has relied on the findings of the lower authorities. The ld. DR submitted that the lower authorities have already considered the cash deposited based on the documents placed on record and as regards the addition in the absence of details / evidence the addition is rightly made in the hands of the assessee. 9. We have heard the rival contentions and perused the material placed on record. The assessee earns income from running of an E Mitra kiosk and undertaking transactions of money transfer, recharge of mobile , hotel and ticket booking on behalf of his customers. He receives money in cash from persons who are paying their utility bills such as electricity bills, water bills, fees payments, buying train tickets, hotel booking and transferring money from one location to other which is deposited by him in his bank account and is transferred to various portals for above said purpose and in return the assessee earns commission. The case of the assessee was selecte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ates Hotels Ltd. 2035.00 40.00 6. Vodfafone M-Pesa Ltd. 97.97 4.90 From the above analysis it is very apparent that during these two months the assessee carried both types of work viz. deposit of utility bills and Hotel and Ticket bookings. The assessee had executed an Agreement with Novapay on 28.12.2016 which is a portal for money transfer mainly. The assessee was working for this portal earlier also, but the quantum of commission was very low as is evident from the entries appearing in form 26AS. It is apparent from TDS made by above named Novapay that during the months of December 2016 to March 2017 the quantum of commission has recorded growth as compared to commissions in the months of April, 16 to November, 2016. The bank statements of the assessee evidences that the amount deposited by the assessee in the bank accounts during these two months of demonetization was transferred to other accounts as is apparent from the transactions appearing therein. Thus, when the assessee has is not directly benefit for cash deposit by making any personal investment but has transferred the money for services he rendered to the party whose service are availed and the commission arising out o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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