9911796707
TMI Blog2024 (12) TMI 387X X X X Extracts X X X X X X X X Extracts X X X X ..... once the AO has accepted the business activity of the assessee as a commission agent as well as dealership in drip irrigation system on behalf of the farmers, then the income of the assessee was required to be assessed on some reasonable basis. Though the CIT (A) has estimated the income of the assessee @ 8%, however, in the subsequent A.Y, the CIT (A) has deleted the addition made by the Assessing Officer on account of unexplained cash deposits in the bank account. It is not clear from the order of the CIT (A) for the A.Y 2017-18 whether the assessee has offered any income on account of commission or not. Accordingly, we are of the considered opinion that this matter requires a proper verification and examination of the relevant facts in the light of order of the learned CIT (A) for the A.Y 2017-18 as well as the assessment order in case of Shri Anand Rao Moglikar as relied upon by the assessee. Since the deposits in the bank account of the assessee represents two kind of receipts (i) as a commission agent and another (ii) activity of the assessee in respect of drip irrigation system under the scheme of the State Govt. Therefore, there cannot be a single percentage of commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d AR has also referred to the remand report of the Assessing Officer, submitted that, during the appellate proceedings before the learned CIT (A) and submitted that the Assessing Officer has duly examined the supporting evidence filed by the assessee and accepted that the assessee is carrying on the business activity in the rural areas on behalf of the farmers, as per scheme run by the State Govt. along with his commission agency business in the Agricultural Market Committee. Therefore, the assessee received cash from the farmers and deposits in his bank account for making Demand Draft on behalf of the farmers. The transactions in the bank account are related top that business only. However, the learned CIT (A) confirmed the addition made by the Assessing Officer without appreciating the remand report of the Assessing Officer. He has further submitted for the subsequent A.Y i.e. A.Y 2017-18, the learned CIT (A) has deleted the addition made by the Assessing Officer and accepted the income declared by the assessee as commission @ 1.5%. He has filed a copy of the order of the learned CIT (A) dated 27/06/2024 for the A.Y 2017-18. The learned AR has also referred to the assessment orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commission agent as well as dealer of the drip irrigation scheme system under the Govt. of Telangana to provide irrigation system to the eligible farmers at subsidized rate. The learned CIT (A) called for a remand report from the Assessing Officer which reads as under: GOVERNMENT OF INDIA MINISTRY OF FINANCE, INCOME TAX DEPARTMENT To, The Appeal Unit Dated: 16/05/2024 DIN Letter No: ITBA/ NFACIFI24/2024-25/1064932726(1). Sub:- Remand Report the case of NARAYANA REDDY SURKUNTI (CVWPS8341F) for AY 2015-16 with reference to Appeal Number NFACI2014-15/10129558- reg. The assessee, Sri Narayana Reddy Surkunti is a non- filer for the A.Y. 2015 16. The case was reopened u/s 147 basing on the information that an amount of Rs. 2,04,44,804/- cash was deposited into the bank accounts of the assessee during the year had escaped assessment. The nature and source of cash deposit made in the bank accounts was not explained by the assessee during the scrutiny proceedings even after providing sufficient opportunities. Accordingly, FAO completed the assessment by adding the unexplained cash deposits of Rs. 2,04,44,804/- u/s 69A of the Income Tax Act and assessed the income at Rs. 2,04,44,800/-. Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is carrying business activity in the rural area on behalf of farmers as per the scheme run by the State Government along with his commission business in agricultural market committee and the assessee received the cash from the farmers and deposited the same in his bank accounts for making DDs on behalf of farmers, the transactions in the bank account are related to that business only. Submitted for kind perusal of Learned CIT(A) for deciding the case on merits Yours faithfully, Assessing Officer 6. Thus, the Assessing Officer has accepted the claim of the assessee that, the assessee is carrying on business activity in the rural areas on behalf of the farmers as per the scheme run by the State Govt. along with his commission business in agricultural market committee. By considering this remand report, the learned CIT (A) has restricted the addition to 8% of the total deposits as against the addition made by the Assessing Officer of total deposits in the bank account. Now the assessee is seeking further relief by claiming that, the income of the assessee is only 1.5% of the deposits as the commission income and relied upon the order of the learned CIT (A) for the A.Y 2017-18 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
