ITAT Mumbai Slams AO for Not Probing Real Culprits – Quashed Rs. 103 Cr Benami Addition on Auto-Rickshaw Driver
AO taxed Rs. 103.33 Cr in hands of an auto-rickshaw driver:
The assessee, an auto-rickshaw driver, was taxed on Rs. 103.33 crore credited to the account of M/s Aqua Trading Company. The AO made the addition solely because the account was in his name, ignoring his limited means. No effort was made to assess whether he was genuinely involved in the business.
Assessee claimed he earned only Rs. 2,000/month as commission:
The assessee deposed that he lent his name for Rs. 2,000 per month and had no control over the transactions. He identified Shri Raju Bhimrajka as the actual operator of the business. The AO disregarded this statement and made no inquiry into Bhimrajka’s role.
AO failed to probe real operators of the business:
Despite having access to transaction trails and related entities, the AO failed to investigate the real beneficiaries. Funds flowed through multiple accounts, yet no effort was made to trace the actual handlers. The entire burden was wrongly placed on the assessee.
ITAT lambasts the action, deletes addition in entirety:
The Tribunal held it unimaginable for a rickshaw driver to manage Rs. 103 crore and found the addition unjustified. It deleted the entire sum and criticized the AO’s inaction against the real culprits. The relief was granted considering the unique facts, without setting a precedent.
The copy of the order is as under:
