Unaccounted amount of Rs 103 cr credited to the account of a rickshaw driver: ITAT deleted the addition
Surendra Kumar Rajmani Mishra Vs ITO (ITAT Mumbai) (TS-442-ITAT-2025)
Facts:
1. The bank account in the name of M/s. Aqua Trading Company had huge credit transactions amounting to Rs.1,03,33,86,100/- in the bank account held with Dhanlaxmi Bank Ltd., Fort Mumbai.
2. Assessee was asked to explain the details in the aforementioned bank account. In his statement on oath, the assessee stated that the said bank account was not operated by him but by Shri Raju Bhimrajka and he was given only Rs.2,000/- per month i.e., Rs.24,000/- per annum as commission and the same has been offered for taxation by him in his return of income.
3. On receiving no supportive evidence, the AO treated the transactions of Rs. 1,03,33,86,100/- and made addition of the same to the returned income of the assessee.
ITAT Mumbai held as below:
1. AO did not make any verifications from the real culprits and taxed the entire amount in the hands of the auto-rickshaw driver i.e., the assessee.
2. We are of the considered view that the AO ought to have considered the transactions, once the assessee has stated on oath that he is not doing any business but the entire business is done by Shri Raju Bhimrajka, there is no evidence on record that the AO made any effort to trace the real business behind the alleged transactions and instead chose to make addition in the hands of the assessee.
3. We are of the considered view that such action of the AO cannot be justified on any count. Therefore, considering the peculiarity of the case, being that of an auto-rickshaw driver, the impugned addition cannot be sustained in his hands and is accordingly directed to be deleted.
4. It is made clear that considering the peculiarity of the case and considering that the assessee is an auto-rickshaw driver, our decision should not be considered as precedence in any other case.
The copy of the order is as under:
