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TMI Blog2024 (5) TMI 1072X X X X Extracts X X X X X X X X Extracts X X X X ..... ons as nature of business does not require any capital to be invested. In the bank account, no huge balance ever remained at any point of time. Merely the assessee was unable to file party wise details, entire bank transaction cannot be taxed as income. HELD THAT:- We find that no details of customer or persons to whom the assessee made transactions is given. Assessee in his submission explained that no details of such persons are maintained and the nature of business is peculiar. This Tribunal in various cases as relied by the ld. AR of the assessee has made/restricted the addition @ 0.125% to 0.35%, however, this combination in case of ITO Vs Shri Deepak Viothaldas Suchak [ 2021 (8) TMI 1028 - ITAT SURAT] wherein the ld. CIT(A) restricted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oth these appeals were clubbed, heard together and are being decided by this consolidated order to avoid the conflicting decision. For appreciation of facts, the appeal in ITA No. 542/Srt/2023 for the A.Y. 2010-11 is treated as a lead case . In this appeal, the assessee has raised following grounds of appeal: 1. The Ld. CIT(A), grossly erred in confirming the addition of Rs. 2,24,77,252/- as unexplained cash credit u/s 68 of the Act being bank transactions of Axis Bank A/c No. 910010002119147 as per para 5.2 of the appeal order. 2. The Ld. CIT(A), gross erred in not estimating reasonable profit on business activity of cheques/draft discounting through the said bank account and erred in taxing entire transactions of the said bank account. 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that he earned commission income @ 0.5% on demand draft made from his bank in favour of Gujarat Mineral and Development Corporation (GMDC). Further all the deposits in his banks pertains to other persons for whom the assessee got prepared Demand draft and handed over to GMDC for procurement of coal. The reply of assessee was not accepted by Assessing Officer by taking a view that the assessee failed to explain why this bank account was not reflected in his books of account. The Assessing Officer on perusal of details of bank deposit was of the view that there was total deposit of Rs. 2.24 crores during the financial year and that the assessee failed to provide supporting bills, vouchers to justify huge transaction. As per directions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nfirmed the addition made in the assessment order. Further aggrieved, the assessee filed appeal before the ld. CIT(A). 4. We have heard the submissions of the learned Authorised Representative (ld. AR) of the assessee and the learned Senior Departmental Representative (ld. Sr. DR) for the revenue. The ld. AR of the assessee submits that the case of assessee was reopened on the direction of ld. CIT(A). During the assessment, the assessee was asked to explain the nature of transaction. The assessee in his reply submitted that he used to receive commission @ .50% for issuing the demand draft through his bank account in favour of GMDC. The Assessing Officer was not satisfied and made addition of entire credit entry by holding that the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was unable to file party wise details, entire bank transaction cannot be taxed as income. The ld. AR of the assessee submitted that in a similar assessees who were also engaged/indulged in similar cheque discounting or Shroff business, various Benches of the Tribunal has restricted addition to the extent of 35 paise to 12.5 paise per Rs. 100/- as commission income. Copy of such decision in Rohit P Panwala ITA No. 608 to 612/Ahd/2010, Umeshchandra Garg Vs ACIT (2004) 91 TTJ Agra 549 and C.K. Telang Vs ACIT ITA No. 4538/Del/1993 and ITA No. 361/Srt/2018 in ITO Vs Shri Deepak Vithaldas Suchak is filed. 5. The ld. AR of the assessee further submits that he has filed a complete detail of his bank account wherein amount deposited through cheques ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that no details of customer or persons to whom the assessee made transactions is given. The ld. AR of the assessee in his submission explained that no details of such persons are maintained and the nature of business is peculiar. 8. We find that the Coordinate Bench of this Tribunal in various cases as relied by the ld. AR of the assessee has made/restricted the addition @ 0.125% to 0.35%, however, this combination in case of ITO Vs Shri Deepak Viothaldas Suchak in ITA No. 361/Srt/2018 wherein the ld. CIT(A) restricted the addition on similar type of transaction @ Rs. 50 per lac on total turnover of Rs. 98.22 crores. However, on appeal before the Tribunal, this combination increased the disallowance to Rs. 75 per lac, therefore, taking a c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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