AHSAN AHMED SHAIKH, MUMBAI V. I.T.O.20(1)(1), MUMBAI

ITA 1801/MUM/2011

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 9383 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 11 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: I
• Next Hearing Date: 09-02-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 04-03-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Income from undisclosed sources; Peak credit; Additional evidence
• Section: 143(3); 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH I, MUMBAI BEFORE SHRI N. K. BILLAIYA ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA, JUDICIAL MEMBER ITA NO. 1801/MUM/2011 ASSESSMENT YEAR: 2006-07 MOHD. ARIF SHAIKH (LEGAL HEIR OF AHSAN AHMED SHAIKH) C/O. RAJ ENGINEERING CO., OPP. RUBY COACH, CHIMAT PADA, MAROL NAKA, ANDHERI (E), MUMBAI 400 059 PAN:-AAXPS 7925 F VS. ITO, WD- 20(1)(1) PIRAMAL CHAMBER LALBAUG MUMBAI (APPELLANT) (RESPON DENT) ASSESSEE BY : SHRI RAKESH JOSHI REVENUE BY : SH RI S ACCHIDANAND DUBEY DATE OF HEARING : 09 .02.2015 DATE OF ORDER : 25 .02.2015 O R D E R PER AMIT SHUKLA, JM: THE AFORESAID APPEAL HAS BEEN FILED BY THE ASSESSE E, AGAINST ORDER DATED 09.02.2011, PASSED BY LD. CIT(A)-31, FOR THE QUANTUM OF ASSESSMENT U/S 144 OF THE ACT FOR THE A.Y. 2006-07. IN THE GROUNDS OF APPEAL THE ASSESSEE HAS RAISED FOLLOWING GROUNDS: 1. THE ORDER PASSED BY THE CIT(APPEAL) IS CONTRAR Y TO THE FACTS, ARBITRARY, IMAGINARY AGAINST THE PROVISION OF INCOM E TAX ACT, AND THEREFORE LIABLE TO QUASHED. ITA NO. 1801/MUM/2011 ASSESSMENT YEAR: 2006-07 2 2. ON FACTS AND CIRCUMSTANCES OF THE CASE AND LAW O N THE SUBJECT, THE CIT(APPEALS) HAS ERRED IN CONFIRMING THE ADDITI ON OF RS.33,57,080/- IN RESPECT OF CASH DEPOSITS IN VARIO US BANK ACCOUNTS WITHOUT TAKING INTO ACCOUNT THE NATURE OF THE BUSINESS OF THE APPELLANT AND ALSO TAKING THE OPENING PEAL B ALANCE INTO ACCOUNT WHILE DETERMINING THE PEAK BALANCE AVAILABL E WITH THE APPELLANT. 2. THE BRIEF FACTS QUA THE ISSUE INVOLVED ARE THAT, ASSESSEE IS AN INDIVIDUAL AND HAS CLAIMED TO BE IN THE BUSINESS OF MONEY TRANSFER TO VARIOUS PLACES IN THE STATE OF UTTAR PRADESH FROM M UMBAI. THE TRADE NAME OF THE SAID BUSINESS WAS KNOWN AS RAJ QUICK S ERVICES. BEFORE THE ASSESSING OFFICER, THE ASSESSEE HAD EXPLAINED T HE MODUS OPERANDI, THAT HE COLLECTS THE MONEY FROM PERSONS WHO ARE MOS TLY LABOURERS AND WORKING CLASS IN MUMBAI WHO INTENDED TO SENT THEIR MONEY TO THE THEIR FAMILY AND RELATIVES IN VARIOUS PLACES IN U.P. HIS BROTHER, SHRI IRFAN A. SHAIKH IS BASED AT LALBAUG IN DISTRICT AZAMGARH OF UTTAR PRADESH, WHO RECEIVES THE MONEY IN HIS BAN ACCOUNT AND DISBURSES THE MONEY TO THE RESPECTIVE PERSONS. THE TRANSFER OF MONEY IS THROUG H BANKING CHANNEL SERVICES WHERE CASH IS DEPOSITED AND COLLECTED FROM THE BRANCH LOCATED IN AZAMGARH. IN THIS PROCESS THE ASSESSEE GETS 3% C OMMISSION AS HIS INCOME. IT WAS ALSO STATED BY THE ASSESSEE THAT HE HAS REGISTERED HIMSELF UNDER THE CATEGORY OF BUSINESS AUXILIARY S ERVICES OF SERVICE TAX, UNDER SERVICE TAX LAWS. THE ASSESSING OFFICER NOTED THAT, THE ASSESSEE HAD SHOWN NET PROFIT FROM MONEY TRANSFER B USINESS AT RS.1,23,800/- HOWEVER, NO PROFIT AND LOSS ACCOUNT W AS FILED. AS PER THE INFORMATION GATHERED BY HIM, THE ASSESSEE IS HAVING BANK ACCOUNT IN CANARA BANK AND BHART CO-OP BANK. ONLY ONE ACCOUNT IN CANARA BANK WAS DISCLOSED IN THE BALANCE SHEET AND NOT THE OTHE R BANK ACCOUNTS. EVEN THE BANK BALANCE SHOWN IN THE CANARA BANK DOES NOT TALLY WITH THE FIGURE SHOWN IN THE BALANCE SHEET. AS PER THE AIR I NFORMATION, THE ITA NO. 1801/MUM/2011 ASSESSMENT YEAR: 2006-07 3 ASSESSEE HAD DEPOSITED SUM OF RS.43,85,936/- IN THE CANARA BANK ACCOUNT IN CASH. THE ASSESSEE HAD FAILED TO GIVE TH E NAME AND ADDRESSES OF THE PERSONS FROM WHOM HE HAS ACCEPTED THE MONEY FOR TRANSFER TO AZAMGARH U.P. AND THE PERSONS TO WHOM T HE MONEY WAS DISTRIBUTED OR HANDED OVER. HE FURTHER NOTED THAT I N THE TWO BANK ACCOUNT OF BHARAT CO-OP. BANK THE ASSESSEE HAS DEPO SITED RS.26,60,060/- AND RS.23,62,741/-, AGGREGATING TO R S.50,22,801/-. SINCE, THE ASSESSEE NEITHER FURNISH ANY NECESSARY E VIDENCE NOR APPEARED BEFORE THE AO TO CLARIFY HIS ACCOUNTS, HE TREATED THE ENTIRE SUMS DEPOSITED IN BOTH THE ACCOUNTS AS UNDISCLOSED INCOME U/S 68. ACCORDINGLY, FOLLOWING ADDITION WAS MADE AS INCOME FROM UNDISCLOSED SOURCES. (A) DEPOSITS IN TWO ACCOUNT OF BHARAT CO-OP. BANK A CCOUNT RS.50,22,801/- (B) DEPOSIT IN CANARA BANK ACCOUNT RS.43,85,936/- BESIDES THIS, HE HAS ALSO TAXED THE COMMISSION INCO ME OF RS.1,23,800/- SHOWN ON ACCOUNT OF MONEY TRANSFER BUSINESS. 3. BEFORE THE LD. CIT(A), FIRST OF ALL ENTIRE IS MO DUS OPERANDI OF MONEY TRANSFER BUSINESS WAS EXPLAINED AND WAS SUBMI TTED THAT ENTIRE CASH DEPOSITED IN THE THREE UNDISCLOSED BANK ACCOUN T OF THE ASSESSEE CANNOT BE CONSIDERED AS UNEXPLAINED INCOME. BECAUSE THE SAID MONEY DOES NOT BELONG TO THE ASSESSEE AS HE IS ENGAGED IN THE BUSINESS OF ANGADIA SERVICES. THIS MONEY TRANSFER BUSINESS I S DONE MAINLY FOR THE LABOURERS BELONGING TO VARIOUS PLACES OF UP WORKING IN MUMBAI. THE ASSESSEE USED TO DEPOSIT THE CASH IN THE BANK ACCOU NT OF SUCH PERSONS/ CUSTOMERS TO BE TRANSFERRED TO THE VARIOUS PLACES I N UP. THE CASH DEPOSITED WAS TRANSFER IN THE BANK ACCOUNT IN UP AN D FROM THERE MONEY ITA NO. 1801/MUM/2011 ASSESSMENT YEAR: 2006-07 4 WAS WITHDRAWN BY HIS BROTHER AND DISBURSED TO THE C ONCERNED RELATIVES OR FAMILY MEMBERS OF THE CUSTOMERS. THE ASSESSEE ON LY GETS COMMISSION ON SUCH TRANSFER OF MONEY AND THIS BUSINESS IS BEIN G REGULARLY CARRIED OUT BY HIM FOR LAST SEVERAL YEARS AND THE INCOME EA RNED THEREON HAS BEEN DISCLOSED IN RETURN OF INCOME FILED REGULARLY. ALTERNATIVELY, IT WAS SUBMITTED THAT IF THE CASH HAS BEEN DEPOSITED IN TH E BANK ACCOUNT, THEN THERE ARE CORRESPONDING WITHDRAWALS ALSO FROM THE S AME BANK ACCOUNT AND THEREFORE, ENTIRE CASH DEPOSIT CANNOT BE TAXED. THE ASSESSING OFFICER SHOULD HAVE THE WORKED OUT THE PEAK BALANCE OF THE CASH FOR THE PURPOSE OF MAKING THE ADDITION. THE ASSESSEE HAD AL SO FILED CERTAIN ADDITIONAL EVIDENCES IN THE FORM OF LIST OF THE PER SONS FROM WHOM THE CASH WAS COLLECTED AND TRANSFERRED TO VARIOUS PLACE S IN UP ALONG WITH COPY OF CERTAIN DEMAND DRAFTS TO SHOW THE GENUINENE SS OF THE TRANSACTION. THE LD. CIT(A) DIRECTED THE AO TO VERI FY ALL THE RELEVANT BANK ACCOUNTS WHICH HAS NOT BEEN DISCLOSED BY THE A SSESSEE IN HIS REGULAR BOOKS OF ACCOUNT AND IN THE BALANCE SHEET. AO WAS ALSO DIRECTED TO VERIFY THE CLAIM OF THE ASSESSEE REGARDING TRANS FER OF MONEY THROUGH BANKING CHANNEL. IN THE REMAND REPORT, THE AO SUBMI TTED THAT ASSESSEE HAD SUBMITTED LIST OF FIVE BANK ACCOUNTS, THE DETAI LS OF WHICH RELEVANT AS UNDER:- SL NO. NAME OF THE BANK BRANCH TYPE OF ACCOUNT ACCOUNT NO. (I) CANARA BANK SAKINAKA OD 1208 (II) CANARA BANK SAKINAKA SB 27731 (III) CANARA BANK SAKINAKA SB 29646 (IV) THE BHARAT CO-OP. BANK ANDHERI (E) SB 8781 (V) THE BHARAT CO-OP. BANK ANDHERI (E) SB 8926 ITA NO. 1801/MUM/2011 ASSESSMENT YEAR: 2006-07 5 OUT OF THESE BANK ACCOUNTS, THE LAST THREE BANK ACC OUNTS HAVE NOT BEEN DISCLOSED BY THE ASSESSEE IN HIS BOOKS OF ACCOUNT. THE TOTAL ADDITION OF RS.94,08,737/- WAS NOT ONLY MADE ON ACCOUNT OF CASH DEPOSITED BUT ALSO INCLUDED OPENING BALANCE, AMOUNT COLLECTED BY CHEQU E OR TRANSFER ENTRIES. THE THREE BANK ACCOUNTS, NOT DISCLOSED; WE RE MAINTAINED BY THE ASSESSEE JOINTLY EITHER WITH HIS WIFE, SMT. KESHARI BEGUM SHAIKH OR HIS DAUGHTER, SHABNUM SULTANA. HE ALSO REPORTED THAT NO SCRUTINY ASSESSMENT IN THE CASE OF THE ASSESSEE PRIOR TO THI S YEAR HAS BEEN MADE THEREFORE, IT CANNOT BE SAID THAT DEPARTMENT HAS AC CEPTED THE ASSESSEES BUSINESS OF MONEY TRANSFER. HE REPORTED THAT FOLLOW ING CASH WERE DEPOSITED OR WITHDRAWN FROM THE THREE UNDISCLOSED B ANK ACCOUNTS. SR. NO. ACCOUNT NO. CASH DEPOSITED CASH WITHDRAWAL 1 THE BHARAT CO-OP BANK A/C NO. 8781 22,54,165/- 16,45,000/- 2 THE BHARAT CO-OP BANK A/C NO. 8926 20,86,460/- 14,13,393/- 3 CANARA BANK A/C. NO. 29646 32,50,170/- 38,70,000/- TOTAL 75,90,795 62,98,393/- THE AO FURTHER REPORTED THAT ASSESSEE COULD PRODUCE ONLY FIVE PARTIES FOR VERIFICATION AND COPIES OF CONFIRMATION FROM SO ME OF THE RELATIVES OF THE CUSTOMERS WERE FILED. THE ASSESSEES SUBMISSION ON AND COMMENTS GIVEN BY THE AOS IN HIS REMAND REPORT, HAS BEEN DE ALT BY THE LD. CIT(A) IN DETAIL FROM PAGES 6 TO 11 OF THE APPELLATE ORDER . 4. LD. CIT(A) ADMITTED THE ADDITIONAL EVIDENCES AND ALSO NOTED THE RELEVANT OBSERVATION OF THE AO GIVEN IN THE REMAND REPORT. HE NOTED THAT AS PER THE DETAIL FINDING OF THE AO AND CATEGO RICAL ADMISSION OF THE ITA NO. 1801/MUM/2011 ASSESSMENT YEAR: 2006-07 6 ASSESSEE THAT NO PROPER DETAILS AND SUPPORTING EVID ENCES RELATING TO MONEY TRANSFER BUSINESS FOR CASH DEPOSIT COULD BE F URNISHED, THEREFORE, IT CANNOT BE HELD THAT THE CASH DEPOSIT SHOULD BE T REATED AS DISCLOSED RECEIPTS. HOWEVER, LD. CIT(A) AGREED WITH THE ALTER NATE CONTENTION OF THE ASSESSEE THAT THERE HAD BEEN REGULAR CASH WITHD RAWAL AND CASH DEPOSIT IN THE SAME BANK ACCOUNT, THEREFORE, THE EN TIRE CASH DEPOSITED CANNOT BE ADDED AS UNDISCLOSED INCOME. THE EFFECT O F BOTH DEBITS AND CREDITS HAS TO BE TAKEN INTO CONSIDERATION AND PEAK CREDIT SHOULD BE ADDED. ACCORDINGLY, HE HELD THAT THE POSITIVE PEAK CASH BALANCE DURING THE RELEVANT ACCOUNTING YEAR WORKED OUT FOR ALL THE UNDISCLOSED BANK ACCOUNTS SHOULD BE CONSIDERED AS UNACCOUNTED INCOME OF THE ASSESSEE. THE PEAK CREDIT WORKED OUT TO AT RS.29,69,518/- HE FURTHER OBSERVED THAT THE CREDITS MAINTAINED IN THE BANK ACCOUNT WIT H SBI LALGANJ AZAMGARH IS ALSO TO BE CONSIDERED AS PART OF ASSESS EES TOTAL TURNOVER, BECAUSE THE MONEY WAS DEPOSITED IN THE SAID BANK AC COUNT FOR DISBURSEMENT AND THEREFORE, IT IS ALSO PART OF HIS TURNOVER. THEREAFTER HE HELD THAT COMMISSION INCOME @ 3% SHOULD BE SEPARATE LY ADDED ON ACCOUNT OF TOTAL CREDITS DEPOSITED IN THE BANK ACCO UNTS I.E. THREE UNDISCLOSED BANK ACCOUNT AND ONE THAT OF THE SBI LA LGANJ, AZAMGARH. THE AGGREGATE CREDIT DEPOSITS IN THESE BANK ACCOUNT S WAS AT RS.1,29,18,737/-. THUS, HE WORKED OUT THE COMMISSIO N INCOME OF RS.3,87,562/- ON SUCH TURNOVER. FINALLY THE ADDITIO N TO THE EXTENT OF RS.33,57,080/- WHICH CONSISTED OF PEAK CREDIT OF RS .29,69,518/- AND COMMISSION INCOME OF RS.3,87,562/- WAS SUSTAINED BY THE LD. CIT(A). 5. BEFORE US, LEARNED COUNSEL, SHRI RAKESH JOSHI, A FTER EXPLAINING THE ENTIRE FACTS AND THE NATURE OF ASSESSEES BUSINESS, SUBMITTED THAT, IT CANNOT BE DISPUTED IN ASSESSEES CASE THAT, HE WAS ENGAGED IN THE ITA NO. 1801/MUM/2011 ASSESSMENT YEAR: 2006-07 7 BUSINESS OF MONEY TRANSFER. THE DEPOSITS IN THE BAN K ACCOUNTS CANNOT BE SAID TO BELONGING TO THE ASSESSEE OR TREATED AS UNEXPLAINED INCOME. IF THE SOURCE OF EACH AND EVERY DEPOSITS COULD NOT BE SATISFACTORY EXPLAINED THEN AT THE MOST, INCOME ELEMENT WHICH IS THE COMMISSION INCOME SHOULD BE TAKEN AS THE REAL INCOME OF THE AS SESSEE. HE FURTHER SUBMITTED THAT, EVEN PEAK WORKED OUT BY THE LD. CIT (A) IS NOT CORRECT, BECAUSE FIRSTLY, THE LD. CIT(A) HAS NOT CONSIDERED THE OPENING BALANCE OF RS.12,39,133/- WHICH SHOULD BE REMOVED FROM THE WORKING OF PEAK CREDIT; SECNDLY, THE DEPOSIT OF HIS BROTHERS ACCOU NT HAS ALSO BEEN TAKEN INTO CONSIDERATION, WHILE TAKING THE FIGURE OF PEAK CREDIT; THIRDLY, NOT ONLY THAT SOME OF THE ACCOUNT WITH BHARAT CO-OP BAN K BELONGS TO ASSESSEES WIFE AND NOT TO THE ASSESSEE, AS ON THE SAID BANK ACCOUNT IS SHOWN IN HER BALANCE SHEET AND SHE IS SEPARATELY AS SESSED TO TAX. IN SUPPORT OF HIS CONTENTION, HE DREW OUR ATTENTION TO ASSESSMENT ORDER PASSED U/S 143(3) FOR THE A.Y. 2006-07 IN THE CASE OF THE ASSESSEES WIFE; LASTLY, IN THE ALTERNATIVE, HE SUBMITTED THAT IF PEAK CREDIT IS TO BE ADDED THEN FURTHER ADDITION OF COMMISSION INCOME CA NNOT BE SEPARATELY ADDED. 6. ON THE OTHER HAND, LD. DR STRONGLY RELIED UPON T HE ORDER OF THE LD. CIT(A) AND SUBMITTED THAT IF THE ASSESSEE HAS F AILED TO PROVE THE SOURCE OF THE CASH DEPOSITED, THEN THE SAME HAS TO BE TREATED AS UNDISCLOSED INCOME. THE LD. CIT(A) HAS VERY RIGHTLY HELD THAT PEAK CREDIT SHOULD BE ADDED. 7. WE HAVE HEARD THE RIVAL SUBMISSIONS AND ALSO PER USED THE RELEVANT FINDING GIVEN IN THE IMPUGNED ORDER AND ALSO THE MA TERIAL PLACED ON RECORD. THE MAIN ISSUE INVOLVED IS UNACCOUNTED CASH DEPOSITS MADE IN THE VARIOUS BANK ACCOUNTS OF THE ASSESSEE. THE ASSE SSEES CASE HAD ITA NO. 1801/MUM/2011 ASSESSMENT YEAR: 2006-07 8 BEEN THAT, HE IS ENGAGED IN THE BUSINESS OF MONEY T RANSFER, WHEREIN VARIOUS CUSTOMERS APPROACHED HIM FOR TRANSFER OF TH E MONEY TO THEIR NATIVE PLACE AND FROM NATIVE PLACES TO MUMBAI. THES E CLIENTS USED TO HAND OVER THE MONEY TO THE ASSESSEE, WHO USED TO DE POSIT THE SAME IN THIS VARIOUS BANK ACCOUNT AND SEND IT TO HIS BROTHE RS BANK ACCOUNT IN AZAMGARH FROM WHERE THE MONEY WAS DISBURSED OR VICE VERSA. FROM THE PERUSAL OF THE DETAIL FINDING GIVEN IN THE CIT(A)S ORDER INCLUDING THAT OF AOS COMMENT IN THE REMAND REPORT, IT IS SEEN THAT ASSESSEE HAS BEEN UNABLE TO EXPLAIN THE SOURCE OF CASH DEPOSITS VIS-A -VIS ANY CORROBORATIVE EVIDENCE. WHATEVER MATERIAL HAS BEEN PLACED ON RECO RD THOUGH ESTABLISHES THAT ASSESSEE WAS IN SOME KIND OF MONEY TRANSFER BUSINESS, HOWEVER, THE ONUS IS UPON THE ASSESSEE TO CORRELATE THE CASH DEPOSITS WITH SOME EVIDENCE OR THE SAME HAS BEEN RECORDED IN REGULAR BOOKS OF ACCOUNT. IT IS ALSO AN UNDISPUTED FACT THAT THREE O F THE ASSESSEES BANK ACCOUNTS WAS NOT DISCLOSED, EITHER IN THE BALANCE S HEET OR IN THE BOOKS OF ACCOUNT. IN SUCH A CASE ONES LIES HEAVILY UPON T HE ASSESSEE TO PROVE THE SOURCE OF THE CASH DEPOSITS IN THE BANK ACCOUNT . SINCE THERE WAS A REGULAR CASH DEPOSITS AND REGULAR WITHDRAWALS FROM SAME NATURE OF TRANSACTION, THEN POSITIVE PEAK CREDIT HAS TO BE WO RKED OUT FOR THE PURPOSE OF ADDITION WHICH HAS RIGHTLY DONE BY THE LD. CIT(A). ACCORDINGLY, THE LD. CIT(A)S CONCLUSION THAT PEAK CREDIT SHOULD BE ADDED IS AFFIRMED. 8. HOWEVER, IT IS NOTED THAT WHILE ARRIVING AT THE PEAK CREDIT OF ALL THE BANK ACCOUNTS, IT IS SEEN THAT FIRSTLY, THE LD. CIT (A) HAS NOT GIVEN CREDIT OF OPENING BALANCE AS ON 1 ST OF APRIL 2005 AND SECONDLY, HE HAS ALSO INCLUDED THE CASH DEPOSITS MADE SBI BANK ACCOUNT OF LALGANJ AZAMGARH WHICH BELONGS TO HIS BROTHER. IF THE SAID BANK ACCO UNT BELONGS TO HIS ITA NO. 1801/MUM/2011 ASSESSMENT YEAR: 2006-07 9 BROTHER THEN NO ADDITION ON ACCOUNT OF UNEXPLAINED CREDIT CAN BE MADE IN THE HANDS OF THE ASSESSEE. THOUGH THE SAID BANK ACCOUNT MAY BE RELEVANT TO WORK OUT THE ASSESSEES COMMISSION INCO ME BUT DEFINITELY CANNOT BE TAKEN AS UNDISCLOSED BANK ACCOUNT OF THE ASSESSEE AS IT BELONGS TO ASSESSEES BROTHER WHO IS SEPARATE AND D ISTINCT FROM THE ASSESSEE. THUS, WE DIRECT THE AO TO WORK OUT THE PE AK CREDIT ONLY FROM THREE UNDISCLOSED BANK ACCOUNT OF THE ASSESSEE, AFT ER EXCLUDING THE OPENING BALANCE AND THE ENTRY IN BANK ACCOUNT BELON GING TO HIS BROTHER FOR THE PURPOSE OF ADDITION ON ACCOUNT OF UNEXPLAIN ED DEPOSITS IN THE BANK ACCOUNT. 9. ONCE THE ADDITION ON ACCOUNT OF PEAK CREDIT IS B EING MADE, THEN NO SEPARATE ADDITION ON ACCOUNT OR COMMISSION INCOM E SHOULD BE MADE SEPARATELY AS MADE BY CIT(A). THE REASON BEING, THE UNEXPLAINED PEAK CREDIT ITSELF TAKES CARE OF INCOME ELEMENT AND SECO NDLY, IF COMMISSION INCOME IS TO BE ADDED THEN IT LEADS TO AN INFERENCE THAT ALL THE CREDITS AND DEPOSITS ARE ACCEPTED AND ONLY THE INCOME QUA T HE TRANSACTION IS TO BE TAKEN AS AN INCOME. HERE-IN-THIS CASE WE HAVE AL READY UPHELD THE ADDITION ON ACCOUNT OF PEAK CREDIT THEREFORE, NO SE PARATE ADDITION ON ACCOUNT OF COMMISSION INCOME SHOULD BE ADDED SEPARA TELY. ACCORDINGLY, THE ADDITION OF RS.3,87,562/- AS MADE BY THE LD. CI T(A) IS DELETED. THE FINAL ADDITION WILL BE ON ACCOUNT OF PEAK CREDIT WH ICH WOULD BE WORKED IN ACCORDANCE WITH THE AFORESAID DIRECTION. THE AO IS DIRECTED TO WORK OUT THE PEAK CREDIT IN THE MANNER INDICATED ABOVE. ACCO RDINGLY, THE GROUND RAISED BY THE ASSESSEE IS PARTLY ALLOWED. ITA NO. 1801/MUM/2011 ASSESSMENT YEAR: 2006-07 10 10. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 25 TH DAY OF FEBRUARY, 2015. SD/- SD/- (N.K. BILLAIYA) (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 25.02.2015 *SRIVASTAVA COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT(A) CONCERNED, MUMBAI THE DR I BENCH //TRUE COPY// BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.