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TMI Blog2025 (3) TMI 409X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of purchases for liquor from Telangana State Breweries Corporation Limited. Assessee is providing services to various persons who are not aware of process of online submission of application form and online procurement of liquor from Telangana State Breweries Corporation Limited. Therefore, assessee is into the business of providing services to various liquor merchants and earned commission. CIT(A) after considering all the relevant facts has rightly treated the assessee as a facilitator and considered the total cash credits/deposits in the bank account as his business receipts and estimated @ 10% profit on total credits appearing in the bank account. The finding of fact recorded by the learned CIT(A) is uncontroverted by the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, SBI, Gopalpuram Branch, Warangal and IDBI, Warangal Branch. The facilities include depositing of the money into the bank account and getting the Demand Drafts issued by the bank. In order to verify the genuineness of the transactions, the Assessing Officer issued summons u/sec.133(6) of the Act and obtained bank statements. The Assessing Officer noticed that the aggregate of the deposits made into the said two bank accounts of the assessee were at Rs. 3,44,85,085/-. The Assessing Officer noted that since the assessee failed to prove his onus i.e., identity, genuineness and creditworthiness of the transactions with respect to the cash deposits made in his two savings bank accounts, the Assessing Officer treated the total cash deposits of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9;s business. 4. The Id CIT(A) erred in directing to treat the entries in the bank accounts as liquor purchase in the absence of any valid proofs and even in the absence of liquor license in the name of the assessee." 5. During the course of hearing, Learned DR at the very out submitted that the order of the learned CIT(A) was received in the office of PCIT-1, Hyderabad on 22.06.2024 and that the Assessing Officer could not file the appeal on or before the due date due to administrative exigencies and that the appeal was filed before the Tribunal on 21.08.2024 with a delay of 25 days [instead of 28 days]. He submitted that in the interest of justice the delay of 25-28 days in filing the appeal before the Tribunal may please be condoned. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and the appeal of the Revenue is admitted for adjudication. 8. Learned Counsel for the Assessee submitted that that in so far as additions made by the Assessing Officer towards cash deposits into bank accounts and estimation of 10% profit by the learned CIT(A), the assessee has furnished all evidences including relevant affidavits from various parties to whom the assessee has provided services in connection with submission of bids to Excise Department for allotment of liquor shop and on successful bidding for initial procurement of liquor from the Telangana State Breweries Corporation. The assessee had also filed relevant ITR return filed by various parties to prove that persons who gave cash to the assessee has filed their income tax re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnished relevant evidences including their income tax returns to prove source for cash given to the assessee. Therefore, the Assessing Officer opined that the total credits including cash deposits into bank account were treated as unexplained cash credits of the assessee and thus, addition has been made u/sec.68 of the Income Tax Act, 1961. It was the argument of the assessee before the Assessing Officer that, he was acting as a facilitator for various people for procuring license from Telangana State Breweries Corporation for online submission of applications and for this purpose he has received cash from various parties and the same has been converted into DDs and transferred to Prohibition & Excise Department for procuring excise license ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee had also extended services to few people who got licenses from State Excise Department and for procurement of liquor from Telangana State Breweries Corporation Limited, he has taken DDs in favour of Corporation, which is evident from funds transferred to Telangana State Breweries Corporation Limited. The assessee has treated the amount received from various parties as his income and amount transferred to Telangana State Breweries Corporation Limited as his expenses and net commission income has been treated as his income. This fact is further strengthened by statements recorded by the Assessing Officer from various persons from whom the assessee claimed to have received cash for online submission of the application and online pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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