Bank Account Used as Conduit: Entire Credits Not Taxable; Only Commission Income Assessable

Jigar Thakorbhai Dave Vs ITO (ITAT Surat) The Surat Bench of the ITAT partly allowed the assessee’s appeals for AYs 2011-12 to 2014-15, holding that the entire bank deposits could not be treated as unexplained income of the assessee merely because the bank account stood in his name. The Tribunal accepted the assessee’s consistent explanation that the bank account was misused by a third party, Shri Mayur Barwaliya of Shree Impex, and that all credits in the account originated from Shree Impex and were immediately withdrawn by the said party. On examination of bank statements and surrounding...