Parv Bansal Vs DCIT (ITAT Delhi)
ITAT Delhi restricts addition u/s 68 to ₹2.22 crore & cuts commission to 1% – Relief in entry transaction case
A survey u/s 133A was conducted on 11.04.2011 at the business premises of Late Shri Anil Kumar Bansal, a practicing Chartered Accountant. Loose papers & diaries showing cash & cheque entries in coded form were found. AO completed assessment u/s 143(3) making addition of ₹126.59 crore u/s 68 for alleged unexplained cash transactions. In first appeal, CIT(A) upheld the addition, but on second appeal, Tribunal (order dated 25.10.2017 in ITA Nos.590 & 591/Del/2017) restored the matter to AO with directions to recompute income based only on entries of cash transactions in the seized material & to prepare a fund-flow statement taking one side of transactions as income.
In the set-aside proceedings, AO made addition of ₹18.85 crore u/s 68, which was later rectified u/s 154 to ₹10.08 crore. CIT(A) partly allowed relief but sustained ₹8.11 crore. Both parties appealed again.
Before Tribunal, Assessee argued that the cash transactions under common codes corresponded to cheque transactions already accepted by Revenue, hence both should be treated alike. Assessee also filed a peak working, claiming that only the peak balance of ₹1.30 crore should be taxed as income. Revenue contended that fund flow & common-code deductions were not verifiable.
