9911796707
TMI Blog2012 (7) TMI 549X X X X Extracts X X X X X X X X Extracts X X X X ..... of real estate is not in the nature of civil contract and therefore, provisions of sec 44AD are not applicable so far as the deposits in the bank account - receipt in the bank account are in relation to the business activity of the assessee - CIT(A) is just and proper in estimating the profit of the said activity at 10% of the deposits pertaining to the year under consideration - ITA No. 4618/Mum/2010, ITA No. 4580/Mum/2010 - - - Dated:- 25-5-2012 - SHRI VIJAY PAL RAO, SHRI N K BILLAIYA, JJ. Assessee by Sh A D anwani Revenue by Sh K R Vasudevan ORDER PER VIJAY PAL RAO, JM These cross appeals are directed against the order dated 26.3.2010 of the Commissioner of Income Tax (Appeals) for the Assessment Year 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the year under consideration u/s 44AD and declared a profit of Rs. 2,21,460/- on a turn over of Rs. 25,42,600/-. As per the AIR information, the Assessing Officer noticed that the assessee had deposited cash of Rs. 23,89,500/- in the Saving Bank Account with Cosmos Co-Op Bank Ltd . The case was selected for scrutiny and during the course scrutiny assessment; the Assessing Officer further noticed that the assessee had deposited the following amounts in the SB Ac/c with Cosmos Coop Bank Ltd: Name of the Bank A/c No. Total deposit in Rs. Cash deposit in Rs. Cash withdrawals in Rs. Cosmos Coop Bank Ltd SB 230042 14043054 2389500 8953000 Cosmos Coop Bank Ltgd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the Assessing Officer has taken the entire bank deposits as income of the assessee from other sources and made the addition u/s 69 of the Act without taking into consideration the withdrawals made by the assessee. The ld AR has further submitted that the cash deposits recorded in the bank statement cannot be treated as unexplained u/s 69 of the I T Act. This amount, in the bank account represents the advance received by the assessee from various parties for the purchase of plot of land and the withdrawals is the amount which is returned by the assessee to the parties. Therefore, the transactions in the bank account are related to the business of the assessee. He has further submitted that the assessee has produced the confirmation t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tablish that the said money deposited in the account was received for the purchase of plot. The assessee failed to produce the concerned parties; therefore, the addition is justified and the Commissioner of Income Tax(Appeals) without any material in support of the claim of the assessee has reduced the addition by taking the profit at 10% of the deposits. 7.3 In rebuttal, the ld AR has submitted that the Assessing Officer has not disputed the business of the assessee as civil contract. Even in the earlier years, the return filed u/s 44AD was accepted by the Assessing Officer. 8 We have considered the rival contention and carefully perused the relevant material on record. The Assessing Officer noticed that the assessee had deposited in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, this activity of real estate is not in the nature of civil contract and therefore, provisions of sec 44AD are not applicable so far as the deposits in the bank account. 9 Having regards to the facts that the receipt in the bank account are in relation to the business activity of the assessee, we find that the CIT(A) is just and proper in estimating the profit of the said activity at 10% of the deposits pertaining to the year under consideration i.e. Rs.. 1,62,06,447/-. 10 In view of the above discussion, we do not find any error or illegality in the impugned order of the ld CIT(A), qua this issue. 11 In the result, the appeal filed by the revenue as well as the assessee are dismissed. Order pronounced on this 25th, day of M ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
