9911796707
TMI Blog2014 (6) TMI 284X X X X Extracts X X X X X X X X Extracts X X X X ..... ils on account of concealed income, i.e., cash deposits into Bank Account and accepting it as sale proceeds without any documentary evidence. 2. The facts are that ITS information was received in this case according to which, there were cash deposits of Rs. 11,88,000/- in the assessee's bank account as on 31.03.2005. No return of income had been filed by the assessee. Notice u/s 142 (1) dated 18.09.2007 was issued to the assessee asking him to file his return of income by 19.10.2007. However, no such return of income was filed. Again, notice u/s 142 (1) along with show cause notice dated 01.11.2007 was issued to the assessee asking him to explain the source of cash deposits in his bank account and to explain why this amount should not be a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de in cash; that the margin of profit on the sales was in the range of 6% to 7%; that since the assessee's income for the year under consideration was below the taxable limit, no return of income was filed; that the AO wrongly treated the entire cash deposited in the assessee's bank account as the assessee's income; that the AO did this on the basis of mere assumptions and incomplete information; that out of the assessee's bank passbook, as summoned by the AO and not available with the assessee being old, was incomplete; that in the cash account made on the basis of bank account and Profit & Loss Account, the net profit of the assessee stood shown at Rs. 69,570/-, on a turnover of Rs. 9,85,870/-; that the assessment having been framed u/s 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period from 1.7.04 to 31.9.04, i.e., a period of three months and not of one month; that during these three months, the assessee had made cash withdrawals of Rs. 6,23,672/- and had made cash sales of Rs. 2,51,800/-; that apropos the credit entry of Rs. 1,07,000/-, dated 14.10.04, this amount had been transferred to the assessee's bank account from the bank account of a customer, against the sale of sarees and it was not a transfer from the assessee's current account, since the assessee did not have any bank account other than the savings bank account (affidavit to this effect had been filed); that withdrawals of Rs. 21,371/- had been made from the bank account and an amount of Rs. 53,400/- had been withdrawn by the assessee from his busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 000 18,000 28.05.2004 Cash Withdrawal 50,000 68,000 31.05.2004 Cash Withdrawal 5,000 73,000 05.06.2004 Cash Deposit 2,50,000 (1,77,000) 23.06.2004 Cash Withdrawal 1,00,000 (77,000) 01.07.2004 to 30.09.2004 Cash Withdrawal Cash deposit 6,23,677 4,73,372 5,46,677 73,305 14.10.2004 Cash Deposit 1,07,000 (33,695) 16.10.2004 Cash deposit 37,628 (71,323) 06..1.1.2004 Withdrawal slip 1,00,000 28,677 09.11.2004 Cash deposit 6,000 22,677 16.11.2004 Cash Withdrawal 40,000 62,677 18.11.2004 Cash deposit 40,000 22,677 23.11.2004 Cash deposit 60,000 (37,323) 25.11.2004 Cash deposit 45,000 (82,323) 02..12.2004 Cash Withdrawal 10,000 (72,323) 08.12.2004 Cash deposit 55,000 (1,27,323) 14.12.2004 Cash Withdrawal 50,000 (77,32 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts duly taken into consideration and discussed in detail by the ld. CIT (A) in the impugned order. We find the approach of the ld. CIT (A) in adopting the peak of the deposits and withdrawals during the year, to be well justified. The same is, thus, sustained, rejecting the grievance of the department. 11. In the result, the appeal filed by the department, for the above discussion, stands dismissed. ITA No.3496/Del/2013 12. This is Department's appeal for Assessment Year 2005-06, against the order dated 26.03.2013, passed by the Ld. CIT (A)-XXVII, contending that the ld. CIT (A) has erred in deleting the penalty of Rs. 3,14,754/- correctly levied on the assessee u/s 271 (1)(c) of the IT Act. 13. Pursuant to determining the assessee's in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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