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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 ..... lay for eight days in filing hard copy of appeal is allowed. 2. The appeal is against order dated 27.04.2022 of the Learned Commissioner of Income Tax (Appeals) and assessment order dated 26.02.2015 of the Income Tax Officer (AO) determining total income as Rs. 41,75,050/- against income of Rs. 3,31,930/- for the assessment year 2012-13. 3. Brief facts of the case are that assessee filed return of income for the year 2012-13 on 21.03.2013 electronically declaring income as Rs. 3,31,930/-. The case was selected for scrutiny through CASS. Notice under section 143(2) of the Income Tax Act, 1961 (hereinafter called "the Act") was issued on 08.08.2013. Further notices under section 142(1) were issued on 28.08.2014 and on subsequent dates. In compliance of notices Learned Authorised Representative of the assessee attended the proceedings and filed written submissions, details documents etc. As per information available with system, the assessee has done transactions with the Commodity Stock Exchange. Assessee submitted no reply to notices under section 142(1) of the Income Tax Act, 1961. Information was called upon from Pace Commodity Broking Pvt. Ltd. After receiving information from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount received from customers. The cash withdrawals are refund of security amount to customers. The gross amount of hire charges/gross charges from business are Rs. 4,25,562/- and expenses on maintenance of jewellery etc. are Rs. 35,690/-,the net profit from the business is Rs. 3,89,872/-. The Assessee has also earned Rs. 19,318/- from other sources which is commission from Cox and kings Ltd. the company has deducted TDS on this commission Rs. 1,932/-. The Assessee has also earned Rs. 1,599/- on her saving bank as interest. But the same been left inadvertently to show in the computation. The assessee submitted that she was engaged in forward/future trading of commodity and shares, initial margin money has to be paid for starting these transactions. Analysis of bank account at AXIS bank revealed that the assessee has made payments of Rs. 12,55,000/- during the year towards pace company at Delhi. Assessee received Rs. 5,50,000/- from pace company payments from pace is profit generated as a result of these transactions. 7. During the year withdrawals were made through ATM card on numerous occasions, Narration of the bank account reveals the place where the ATM card was used. It was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TM withdrawals done at any place does not change the nature of transaction, GOA 4 The Learned CIT (A) has erred on fact and law in making addition of Rs 15,88,118 as income from undisclosed source which is part of circulation of cash transaction. The Ld Assessing officer has in denial of fact that simple bank receipts or deposits cannot be consider as income of assessee. GOA 5 The appellant reserves the right to add, alter, amend, or delete any further ground of appeal during appeal proceedings." 10. Learned Representative for appellant / assessee submitted that all the additions made in the assessments are based on surmises and estimations without any adverse material on record. Learned CIT(A) erred in upholding addition of Rs. 12,55,000/- for payment made to company as unexplained investment. Learned Assessing Officer and Learned CIT(A) failed to consider submissions of assessee regarding genuine share transactions. Learned CIT(A) and Learned Assessing Officer erred in making additions to the income of assessee of Rs. 5,50,000/- in income from pace company during the assessment year Amount Deposit with Co Date of debit in Bank account Remarks 1,00,000 28.06.2011 28.06 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and receipts to and from Broker can never be considered as the income of the appellant and it is away from all legal and practical hypotheses. The addition of payments of Rs. 12,55,000/-, which was made to PACE, is alleged to have been deposited in her Bank Account in cash by the appellant from some other income sources. It is quite evident that the Cash is mainly deposited from withdrawals made from the same Bank Account and from Security money received from customers. Thus an accumulated addition of Rs. 12,55,000/- made by the Ld CIT(A) is far away from the factual position. The payments received from PACE Companies Rs. 5,50,000/- cannot, under any imagination or hypothesis, constitute profit in the hand of appellant, when complete transaction wise details obtained by the Ld AO directly from PACE is clearly showing losses of Rs. 8,130/- during the year under review. Further, the Ld. AO erred in principle and in law in proceeding on the fallacious assumption that the bank deposits constitute undisclosed income completely overlooking the fact that the sources of deposit need not necessarily be income of the assessee. Hon'ble ITAT New Delhi in I.T.A. No. 3814/Del/11 in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8,38,342.90 Loss in Future and Options Trading (-)1,15,218.80 (-)7,31,254.10 (-)8,46,472.90 Total - Turnover For 44AB 5,26,575.60 11,58,240.20 16,84,815.80 Net PROFIT PROFIT Rs. (+) 2,96,138.00 LOSS Rs. (-) NET LOSS Rs. (-) 8130 17. It is a fact that the total investment were through banking channel and specific after withdrawals from Axis Bank Account No.911010019578198. Once source of deposits of this account is explained and admitted then again making addition on account of withdrawals from there amount it unjustified. Assessee had made withdrawals in Goa during family visit which is as under:- 05.11.2011 to 07.11.2011 Rs. 20,000/- x 9 times = Rs. 1,80,000/- 19.12.2011 Rs. 20,000/- x 5 times = Rs. 1,00,000/- 06.02.2012 Rs. 20,000/- x 5 times = Rs. 1,00,000/- Rs. 1,00,000/- 18. The addition of Rs. 4,80,000/- is on account of credit in bank account or somewhere else is totally irrational. Once the source of deposit is explained then making of addition on account of withdrawals of amount is erroneous. 19. Addition of Rs. 17,41,020/- from undisclosed source which is part of circulation of cash transaction is regarding the bridal bu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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