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TMI Blog2014 (3) TMI 684X X X X Extracts X X X X X X X X Extracts X X X X ..... 02/Agra/2014 (A.Y. 2007-08): 3. This appeal by the Revenue is directed against the order of ld. CIT(A)-II, Agra dated 06.09.2013 for the assessment year 2007-08, challenging the order of ld. CIT(A) in applying net profit rate of 5% on the total cash deposit in the bank account and restricting the addition to Rs.25,370/-. 4. In this case, the assessment order has been passed u/s. 143(3) read with section 147 vide order dated 23.11.2011 determining the assessed income at Rs.5,98,410/- as against returned income of Rs.83,808/-. The assessment was reopened on the basis of findings given in assessment year 2008-09, in which it has been found that certain amounts deposited by the assessee in the bank account maintained with ING Vaishya Bank Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dered the rival submissions and perused the orders of the authorities below. It is admitted fact that the assessee opened the bank account in question, in which several cash deposits were made on different dates totaling to Rs.31,62,300/-. Copy of the bank account is filed at page 1 to 11 of the paper book. The statement of assessee on oath was recorded at the assessment stage, in which in answer to question No. 8, the assessee explained that during the financial year relevant to assessment year under appeal, he had deposited cash in the bank account on different dates, which pertains to his small business. Whatever amounts were received from the business persons were deposited in the said bank account and same amount was paid through chequ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ash deposits on various dates in the financial year and on the debit side, the payments have been made to different parties through banking channel. Names of the parties and concerned bank through whom the payments have been cleared are mentioned. Thus, the parties are identifiable to whom the assessee made payments from same bank account. Further, the amounts have been deposited time to tome and payments have been made to different parties time to time. The assessee did not maintain any books of account of this business. The details contained in the bank account would clearly support the contention of the assessee that the assessee was involved in Dalali business of selling ladies suits and whatever amount was received against the sale of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment clearly prove that the amount deposited in the bank account was in fact sale proceeds of the goods, which were sold by the assessee from time to time against whom the assessee issued cheques to various dealers and earned commission. Therefore, the addition u/s. 69 of the IT Act is wholly unwarranted and unjustified in the case of the assessee. Our findings are also supported by the fact that the assessee has shown meager income in the return of income as income from salary and interest. The authorities below, therefore, should have considered the true nature of the transaction carried out by the assessee. Considering the totality of facts and circumstances, we are of the view that the authorities below are not justified in making ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vour of assessee. The ld. CIT(A) correctly followed the order of the Tribunal. There is, thus, no infirmity in the order of ld. CIT(A). The departmental appeal is, accordingly dismissed. ITA No. 03/Agra/2014 & C.O. No. 02/Agra/2014: 7. The departmental appeal as well as cross objection by the assessee are directed against the order of ld. CIT(A)-II, Agra dated 06.09.2013 for the assessment year 2009-10, challenging the order of ld. CIT(A) in applying the net profit rate of 6% against bank deposits and confirming the addition to the extent of Rs.3,96,974/- only. The assessee in the cross objection stated that the ld. CIT(A) ignored the order of the Tribunal for the assessment year 2008-09. Therefore, instead of applying net profit rate of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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