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TMI Blog2024 (5) TMI 1078X X X X Extracts X X X X X X X X Extracts X X X X ..... icion. Considering the nature of business of hiring bridal items by the assessee the gross income generated therefrom of Rs. 4,25,562/- and accepted by the department, the security amount can easily be calculated at 10% times of the hire charges, which works out at Rs. 38,68,745/-. Therefore assessee had satisfactorily explained the bank entries regarding cash deposits and withdrawals. In view of above material facts and circumstances passing of impugned orders has led to miscarriage of justice which is required to be remedied. Assessee appeal allowed. - Shri M Balaganesh, Accountant Member And Shri Vimal Kumar, Judicial Member For the Assessee : Shri K.K. Juneja, Advocate, Shri Suriya Juneja, Advocate For the Department : Shri A S Rana, Sr. DR ORDER PER VIMAL KUMAR, JM Application for condonation of delay of 8 days in filing hard copy is due to Authorised Representative suffering from viral fever. In application it is mentioned that appeals was electronically filed on 25.06.2022. Authorised Representative was supposed to file hard copy before Tribunal Dehradun office. Due to viral fever Authorised Representative could not travel to Tribunal office Dehradun from Noida. Although e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of income no profit or loss from the trading in commodities and shares is reflected. No books of accounts have been maintained and produced. As per the information available from pace stock broking services pvt. Ltd. following amount of credit entries were found in the ledger account of the assessee:- Pace stock broking services pvt. Ltd. Rs. 19,92,390/- Pace commodity brokers pvt Ltd. Rs. 1,80,894/- Pace commodity brokers pvt. Ltd. Rs. 53,92,099/- Total Rs. 73,65,383/- 5. As per ledger accounts of the assessee in the books of pace stock company Delhi turnover of the assessee during the year under consideration was Rs. 75,65,383/- and assessee was liable to maintain books of accounts and get it audited under section 44AB of the Income Tax Act, 1961. But the assessee failed to maintain audited books of accounts. Hence penalty under section 271A for non-maintenance of books of accounts and under section 271B of the Income Tax Act, 1961 for failure to get accounts audited was initiated. In absence of books of accounts income of the assessee was computed on the basis of the material. 6. Second main source of information was bank account of the assessee at AXIS bank. The assessee was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out Rs. 12,55,000/- and Rs. 4,80,000/-are out of consideration for possible circulation of deposits. The remaining cash deposits came to be Rs. 23,37,172/-out of this 30% i.e. Rs. 7,79,057/- was considered for circulation of deposits and balance of Rs. 15,58,115/- as income of assessee from undisclosed sources. 8. Appellant/assessee preferred appeal before Learned CIT(A) challenging assessment order. Vide order dated 27.04.2022 the appeal of appellant/assessee was dismissed. 9. Being aggrieved assessee preferred appeal with following grounds:- GOA 1 The learned commissioner of Income Tax (Appeals) has erred on facts and have in passing the impugned order w/s 280 read with section 284 which is contrary to law, equity and justice and facts and material on record, arbitrary, based on conjectures and surmises, passed without granting proper opportunity to defend. GOA 2 The learned commissioner of Income Tax (Appeals) has erred in upholding addition of Rs 12,55,000/- for payment made to company as unexplained investment. The Ld. Assessee officer has erred to consider the assessee submission regarding the genuine shares transactions. The Ld. CIT (A) has failed to consider the fact that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red were submitted during the assessment proceedings. The Ld. AO also obtained all the financial ledgers from both PACE companies directly. ..... As per information available with system the assessee has done transactions with the commodity stock exchange. Since the assessee submitted no reply to the notice under section 142(1) of the IT Act, 1961 information was called for from Pace Commodity Broking Pvt Ltd...... From the perusal of the statements provided by the broker it is clearly evident that both transactions of receipt payments of the Pace Companies are all from Banking Channels and are duly verified. As regards payments made to PACE Companies on different dates amounting to Rs. 12,55,000/-, the appellant had explained that the amounts are deposited by her in small amounts on various dates from her own Bank withdrawals and the security money received from her Bridal Business activities. The Ld CIT(A) had not doubted the Bridal Business Activities and accepted the profit disclosed per ITR but on the other hand added the payments of Rs. 12,55,000/- made by her to PACE Broking without having any adverse material on record. 12. Learned representative of appellant/assessee submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wal constitutes a taxable business income in the hands of the appellant is neither supported by any precedent nor is permissible under the tax laws. This amount is added to the income of the appellant without any basis and is NOT taxed under the presumptive section 69C of the Act. Therefore appeal may be accepted. 14. Learned Representative for the Department submitted that assessee failed to explain source of investment and bank entries as well as withdrawals of cash accounts. Impugned orders are legal. The appeal may be rejected. 15. From examination of record in light of rival contention it is crystal clear that Learned Assessing Officer obtained financial ledger from both company :- Amount Deposit with Co Date of debit in Bank account Remarks 1,00,000 28.06.2011 28.06.2011 It is worth to mention that in all these entries the bank has specifically named all such entries as PACE, the name of the company, where the amount is deposited. 3,55,000 06.08.2011 06.08.2011 1,00,000 23.08.2011 23.08.2011 50.000 29.08.2011 29.08.2011 1.50,000 03.09.2011 03.09.2011 1,00,000 12.09.2011 12.09.2011 2,00,000 19.09.2011 19.09.2011 2,00,000 14.03.2012 14.03.2012 12,55,000 TOTAL 16. The assessee s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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