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TMI Blog2025 (1) TMI 1162X X X X Extracts X X X X X X X X Extracts X X X X ..... s to be seen. Even if assessee's plea is not substantiated that this account was opened fraudulently by some Shri Ashish Agarwal and now that he has already died and assessee cannot prove his bonafide, then also if at all it can be inferred that it could be some kind of undisclosed business. Thus, the proper course would be that whatever withdrawal has been made should have been added or some kind of net profit can be applied. The reason being if the amounts have been deposited through some transfer entry of cheque and same cheque has been issued to some other firm, then without giving benefit of the withdrawals and transfer through cheque, the entire deposit cannot be added. It would be appropriate to apply net profit rate of 1% on the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this case information was received from DDIT (INV), Ahmedabad wherein it was mentioned that assessee has entered into large financial transaction and accordingly, notice u/s.148 was issued on 31/03/2016 to assess the income for A.Y.2009-10. In response to the notice u/s.148, assessee filed return of income declaring total income at Rs. 1,49,700/- which was on account of some commission received. As per the information, assessee has received the credit entry amounting to Rs. 6.23 Crores from various entities which had been routed through his bank account with HSBC of a proprietorship concern M/s. Riddhi Siddhi Silks. In response to the notice assessee submitted that he is completely unaware of any such entries nor does he have bank account d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve carried out such huge transaction. However, the ld. AO in absence of any documentary evidence has added back the entire credit entries of Rs. 6,23,20,835/-. 5. The ld. CIT(A) also has confirmed the said addition observing and holding as under:- "3.2. At the time of the appeal, the assessee made similar argument that the said Ashish Agarwal fraudulently obtained blank cheque books of the bank account after getting them signed by the appellant. The amount deposited in the bank account was never known to the appellant. Therefore, it was misused by Ashish Agarwal for his own purposes, never known to the appellant. 3.3. The argument of the assessee is not at all acceptable. The assessee is an independent businessman and the compulsion o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... do not intend to interfere with the action of the AO by treating the entire credit in the bank account as Unexplained Cash Credit u/s. 68. The assessment is, therefore, sustained and the appeal of the assessee is dismissed." 6. Before us, ld. Counsel for the assessee Shri Bhupendra Shah stated that he is appearing pro bono looking to the fact that the assessee is a very poor person deriving meagre salary income from small private firm. He pointed out that, from the perusal of the bank statement itself it can be seen that there are huge transfer cheque entries and on the same day or next day the same cheque is transferred to some firm M/s Silver Shine Export and only withdrawal made during the year is only Rs. 11,00,000/-. He reiterated th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5/- and there were equivalent withdrawals of Rs. 6,22,81,480/- giving the credit balance of Rs. 39,354/-. Further it is seen that there was no opening balance and there are deposits through some cheques and immediately thereafter, the same amount has been transferred to some entity named Silver Shine Export. The pattern of deposits and withdrawals itself shows that there is some kind of transaction for some export business. Two withdrawals were for Suman Finstock Pvt. Ltd. which assessee was not aware. Further, there are also some cash withdrawals which is of Rs. 11 lakhs. Once there are deposits and corresponding withdrawals through cheques and the transfer of amount from one account to other, the entire deposit cannot be treated as income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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