VIVEK JAIN,NEW DELHI vs. INCOME TAX OFFICER , NEW DELHI

The ld. Counsel submits that the solitary issue in the instant appeal is addition of Rs. 6,80,414/- made by the AO on account of payments made by the assessee towards the credit card outstanding. The ld. counsel placed on record statements of the credit card (at pages 1-41 of the paper book). The ld. Counsel further submits that the payments made by the assessee were towards the loans taken against the credit card in the preceding assessment years. The assessee is earning commission income for liaisoning between the seller and the purchaser of medicines. The assesee is receiving commission income in cash, therefore, the cash payments were made to repay the loan account. He further submits that the commission income earned by the assessee has already been offered to tax in the return of income. If the addition is sustained, it would result in double addition of the same income. 4. Per contra, Shri Manoj Kumar representing the department vehemently supported the impugned order and prayed for dismissing appeal of the asseseee. The ld. DR reiterated the findings of the AO and the CIT(A). 5. Both sides heard. Orders of the authorities below examined. The short issue in the instant appeal is with regard to the addition of Rs. 6,80,414/- made u/s. 69C of the Act. The AO has made addition disbelieving the assessee’s contention that the amount paid by the assessee towards credit card outstanding was from the commission income earned in cash. After examining the documents on record, I am satisfied that the explanation furnished by the