The assessee is engaged in turmeric trading activity. During the assessment, the Ld. AO observed that the so-called Turmeric trading activity was not supported by any evidence, therefore, he treated the entire gross profit as unexplained cash credit u/s. 68. The assessee also carried out his business through agency and had received share of profits (net of commission). The AO opined that the amount received from such agent was nothing but the assessee’s income u/s. 68, thereby making further addition. On appeal, the Hon’ble ITAT observed that in support of the transactions, the assessee furnished all the purchase and sale bills. Further, the modus operandi of business was also supported by the agent of the assessee by giving a statement u/s. 131. The agent also provided agency services to more than 100 other persons and no addition was made u/s. 68 in respect of such persons. The Hon’ble ITAT held that there was no reason for the Ld. AO to hold that the transaction of the assessee with agent was non-genuine when the agents’ transactions with the other persons was held to be genuine. Further, it also observed that the Ld. AO repelled the statement given by the agent u/s. 131 without assigning any justifiable reason. Hence, the Hon’ble ITAT deleted the entire addition made u/s. 68. (AY. 2010-11)