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TMI Blog2014 (6) TMI 571X X X X Extracts X X X X X X X X Extracts X X X X ..... n. The withdrawals may be for the purpose of business and since estimation was done on the basis of the receipts only, the withdrawals cannot be given credit - no books of account were maintained or no reasonable explanation was offered, the profit at the rate of 12.5% may meet the justice at both the ends - Based on the facts of the case, the profits of the assessee, deserved to be estimated at 12.5% on the turnover as quantified - assessee choose not to maintain books of accounts nor furnished any return of income inspite of various notices issued - CIT(A) is very considerate in estimating the income at 12.5% - there was no reason to interfere with the order of the CIT(A) – Decided partly in favour of Assesee. - ITA. No. 544/Hyd/2013 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been issued to the assessee calling for return of income. As there is no response, various notices were issued including summons under section 131of the IT Act 1961. As there was no compliance, assessment has been completed exparte under section 144 of the I.T. Act. The A.O. obtained bank statement from ICICI Bank, Syndicate Bank, DCB Bank and Allahabad Bank and noticed that assessee has deposits in the bank accounts to an extent of Rs.1,34,24,696/-. In the absence of any information submitted by the assessee nor production of books, the total bank deposits were treated as gross receipts and net profit was estimated at 15%, thereby assessing the total income at Rs.20,13,704/-. 5. Before the Ld. CIT(A), assessee submitted that it has not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the counts. 7. It was the contention of the Ld. Counsel that the deposits in Allahabad Bank to an extent of Rs.48,78,480/- pertain to the period prior to 31.03.2008 relevant up to A.Y. 2008-09 and not to the impugned A.Y. 2009-2010. With reference to the source of deposits in Syndicate Bank being withdrawals from ICICI Bank, he reiterated the same submissions made before the Ld. CIT(A). With reference to estimation of income, he submitted that assessee being in real estate business, reasonable estimation of 8% is appropriate. 8. Learned D.R. however, reiterated the findings of the A.O. and Ld. CIT(A) and submitted that there is no mistake in the orders of the authorities and both the turnover and estimation are based on the facts on r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yndicate Bank, for correct quantification of the deposits/gross receipts, is examined. It was the argument of the appellant that said amounts withdrawn from one bank were available for depositing into another bank, which will explain the part of the deposits shown as gross receipts, but only duplication of the same receipts. However, on facts, such explanation is found to be not acceptable as the cash withdrawals from the ICICI Bank not explaining the deposits into Syndicate Bank, since such deposits into Syndicate Bank are by transfer/clearing but not by cash, as withdrawn from ICICI Bank, as could be seen from the entries into both current as well as loan accounts maintained with Syndicate Bank. Hence, the explanation offered to explain t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also falls in the category of real estate business, which are subject to the decisions on similar ratio. Hence, based on the facts of the present case, where no books of account were maintained or no reasonable explanation was offered, the profit at the rate of 12.5% may meet the justice at both the ends. Based on the facts of the case, I am of the considered opinion that the profits of the appellant, deserved to be estimated at 12.5% on the turnover of Rs.1,34,24,696/-, as quantified. Accordingly, the A.O. is directed to workout the profit @ 12.5% on the gross receipts of Rs.1,34,24,696/- and recomputed the income. 12. Considering the fact that assessee choose not to maintain books of accounts nor furnished any return of income inspite ..... X X X X Extracts X X X X X X X X Extracts X X X X
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