9911796707
TMI Blog2014 (1) TMI 798X X X X Extracts X X X X X X X X Extracts X X X X ..... as to be treated as business receipt of the assessee - The entries found in the Bank A/c. may be assessed as business profit or as income from other sources, as the case may be - There is no rule that the amount credited to the Bank A/c. must be taken as income from other sources - It always depends upon the evidence and explanation furnished by the assessee - It is appropriate to estimate the income at the same rate of net profit as applied to the undisclosed turnover of the assessee i.e., at 15% instead of 100% as considered by the AO – Decided in favour of assessee. - ITA No. 791/Hyd/2013, ITA No. 792/Hyd/2013, ITA No. 793/Hyd/2013, ITA No. 794/Hyd/2013 - - - Dated:- 9-1-2014 - Shri Chandra Poojari And Smt. Asha Vijayaraghavan,JJ. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of deposits of sale proceeds finding place in the bank account and therefore no separate addition was called for. 7. The Hon'ble CIT(A) ought to have observed that the assessing officer erred in treating the deposits appearing in the bank account as income as the same represent sale proceeds and profit in respect of those sales was only liable for tax. 8. The Hon'ble CIT(A) erred in making addition of Rs. 34,97,574/- being deposits in the bank account representing sale proceeds and therefore the same is liable to be deleted in view of the fact that the assessee already declared profit in respect of such sale proceeds. 9. Alternatively, the Hon'ble CIT(A) ought to have observed that the overall declaration by the assessee for all the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 80 - 1,49,53,880 - 4. According to the AO, the assessee has not disclosed true profit and disclosed profit at 15% on sales in the regular accounts and not considered certain deposits in the A/c. No. 446 at Andhra Bank Jubilee Hills Branch, Hyderabad. Accordingly, he observed that the deposits are not fully considered for determining the income of the assessee. He considered the difference of the deposits so un-admitted as additional income of the assessee which is as follows: F.Y. Addl. Income on the basis of 15% of gross profit in M/s. Aditi Life Science (proprietary concern) Addl. Income admitted in the return of income Difference being in relation to deposits in Andhra Bank A/c. No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eipts of the assessee so as to estimate the income at 15% of the gross receipts. He submitted that the bank account does not have any nexus with the business of the assessee. 7. But the admitted fact is that there is no clear evidence to suggest that the assessee deposited the amounts into the account of Andhra Bank from any sources other than business receipts, though there was a search u/s. 132 of the Act on 12.8.2009 at the premises of the assessee. The assessee's only plea since beginning is that the deposits in the Andhra Bank A/c. represent sale proceeds of the assessee. Unless and until the Department locates any particular source of income, it has to be treated as business receipt of the assessee. The entries found in the Bank A/c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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