Power Agent Cannot Be Taxed Fully- ITAT Restricts Addition to 50%

Advertisement K. Loganathan Vs ITO (ITAT Chennai) The assessee, a real estate mediator, acted as a power agent and sold property on behalf of his principal, depositing sale proceeds of ₹22.05 lakh in his bank account. The AO treated a major portion of these deposits as unexplained cash and made additions along with interest income and capital introduction. During appellate proceedings, evidence including affidavit from the principal confirmed that the assessee was merely holding funds in a fiduciary capacity. The remand report also accepted that part of the deposits and interest belonged ...