Addition of ₹5.48 Lakh brokerage income was upheld and seized records reflected mock trading which was not unexplained income

Pradeep Jain Vs DCIT (ITAT Jaipur) Conclusion: Since the transactions in seized records were only notional mock trading entries and not unexplained cash credits, only brokerage income at 1% of transaction value was taxable. Held: During search proceedings under section 132, certain loose papers (Exhibit-11) containing notings of transactions were found from assessee’s chamber, AO treated the difference in debit and credit balances (₹2.76 crore) as unexplained income under section 68, holding that assessee failed to prove that the transactions were only mock trades done for clients. Assesse...