Nanak Motumal Pherwani vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Nanak Motumal Pherwani, engaged in the business of cheque discounting and transfer of money. He filed his return of income for the assessment year 2013-14 on 31.01.2014. The case was reopened based on a survey action involving M/s Hari Corporation, managed by his brother Harish Pherwani. The Assessing Officer added a 1.00% commission of total transactions/credit received in the assessee's bank account. The assessee argued that the commission earned was already shown in the return of income and varied from 0.15% to 0.20% per Rs.100. The Assessing Officer also added Rs.1.20 lakh under section 69 of the Income Tax Act, which the assessee claimed was already shown in his balance sheet.…

Legal Issues

• 1. Addition of commission income at 1.00% of total transactions/credit in the bank account of the assessee.
• 2. Addition of Rs.1.20 lakh under section 69 of the Income Tax Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Narmada Commodities Trading Pvt. Ltd. vs. ITO, Ward-6(3)

  Kolkata Bench benchAY 2010-11 & 2011-12Partly Allowed

• Advanced Computers and Mobiles India Private Limited Vs DCIT, Circle – 1(1)(1), Mumbai

  Mumbai Bench benchAY 2018-2019Partly Allowed

• Jagdish Muljibhai Makvana Vs. Income Tax Officer

  Rajkot bench

• Hanoze Harish Thakkar vs. Income Tax Officer

  Mumbai bench

• Rupesh Gupta Vs. ITO-3(1), Raipur

  Raipur bench

• Narendra Madhavrav Soni Vs. I.T.O., Ward 2(2)(5), Surat

  Surat bench