Only Commission Income Taxable in Money Transfer Activity; Entire Cash Deposits Cannot Be Treated as Income

Bhanushankar Kasalshibhai Dave Vs ITO (ITAT Surat) The Surat Bench of the ITAT allowed the assessee’s appeal for AY 2012-13 and deleted the addition of ₹29.31 lakh made on account of cash deposits in a bank account. The Tribunal accepted the assessee’s explanation that he was a salaried teacher and the bank account was merely used by his son for carrying out a money transfer business. Cash collected from labourers was deposited into the account and immediately transferred to beneficiaries through banking channels, with the assessee/son earning only a fixed commission per transaction. The...