Commission Agent Theory Accepted; Entire Bank Credits Not Taxable U/s 68

Dhwani Jayeshkumar Patel Vs ITO (ITAT Ahmedabad) The ITAT, Ahmedabad Bench held that entire cash deposits in bank a/c cannot be treated as unexplained u/s 68 when the assessee acts only as a commission/discounting agent and has offered commission income to tax. In this case (AY 2017-18), the assessee deposited ₹31.28 crore across five bank accounts, which the AO taxed in full as unexplained cash credits, despite the assessee’s explanation that the funds belonged to 266 third parties and were merely routed through his accounts for cash-to-cash settlement at Halol, a major plastics trading h...