9911796707
TMI Blog2015 (1) TMI 786X X X X Extracts X X X X X X X X Extracts X X X X ..... ard in respect of purchases made by his wife and in absence of any material to show how and when such repayments were made by his wife to him. - Decided against assessee. Addition on investment as peak deposit - Held that:- The assessee has brought no material before us to show that there was any error in the finding of the CIT(A) that the assessee made peak deposit of ₹ 5,26,869/- on 19.11.2007. Further, the assessee has brought no material to explain the source of the said peak deposit.- Decided against assessee. Unexplained credit card expenditure - purchase of trading goods - CIT(A) deleted the addition - Held that:- No material was brought on record by the Revenue after making necessary enquiries to show that payments from credit card was not made for purchase of trading goods, but was made for any personal expenses cannot be brushed aside simply on the basis of surmises and conjectures and without bringing on record material to controvert the explanation of the assessee. In absence of any material brought before us to show that the explanation of the assessee was not plausible, we find no good reason to interfere with the order of the CIT(A). - Decided against Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rading and has declared profit @5% on gross turnover u/s 44AF of the I.T. Act for which no books is required. He also submitted that the source of payment is amount received from the retail sales turnover made by him and his wife against the above referred purchases. In response to the above reply of the assessee, the assessee vide letter dtd 4/11/2010 was requested to explain how the purchase made for his wife (Neeta Anand Mehta) is paid through his credit card. Further, no evidence has been produced to justify the claim that the purchases were made for himself and his wife and payment of credit card bills are made out of the sale of provisional goods and accordingly ₹ 41,99,552/- was proposed to be added to his income. In response to this, the assessee vide letter dtd. 18/11/2010 submitted as under :- I inform you and you also aware that the source of payment of expenses is credit card through which I have made the payment for me and on behalf of my wife. So there is no question of addition of ₹ 41,99,552/- as there is no undisclosed source for expenses for which credit card is itself is a source of its payment . The contention of the assessee is carefully e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 84,18,580/-. In the statement dated 16.1.2012, the appellant has also agreed with the existence of other credit cards. 2.5 The present appeal is to be decided keeping in view the above mentioned facts. As discussed above the appellant is engaged in the business of retail trading. Since the appellant is engaged in retail trading, accordingly, I am of the considered view that entire payment made against credit card cannot be treated as appellant's income. The appellant is earning profits from retail business. The facts available on record further indicate that the appellant has made total purchases during the year under consideration of ₹ 84,18,580/-. The appellant's contention that purchases were made for different entities like Sunrise Trading, Sunrise Provision Store and Vallavdas Mehta cannot be accepted as all the purchases were made against the credit card of the appellant and the appellant has failed to file cogent evidences to prove the existence of three retail businesses. In view of above, I hold that I income generated from the purchases made against all the six credit cards should be assessed in the hands of the appellant. Since the appellant is engaged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s his submission that, as the assessee had trading business for which payments were made through credit card, therefore, no disallowance u/s 69C could be made. 7. On the other hand, the Departmental Representative supported the order of the Assessing Officer and submitted that the assessee, when called upon by the Assessing Officer to file evidence to justify the claim that the purchases were made for himself and his wife and payment of credit card bills for the sale of provisional goods, the assessee could not file any evidence in support of his claim and, therefore, the Assessing Officer rightly made addition of ₹ 41,99,552/- which comprised of the total payments made through credit card for expenses during the year. 8. We have heard the rival submissions and perused the orders of the lower authorities and material available on record. In the instant case, the assessee has filed his Return of Income disclosing total income at ₹ 1,18,810/- after claiming deduction under Chapter VIA of ₹ 99,445/- from Gross Total Income of ₹ 2,18,250/-. The Gross Total Income included Business Income of ₹ 1,50,200/- which was disclosed u/s 44AF on business turnov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to show that any trading goods so purchased remained unsold at the end of the relevant year. The assessee s turnover also includes the business expenditure and profit of the assessee, besides the purchases. The assessee was not able to bring any material before us to show the amount of its other business expenses and the amount of gross profit earned by it. Thus, we find no infirmity in the order of the CIT(A) in estimating assessee s turnover at ₹ 90,00,000/- which was most reasonable in the facts and circumstances of the case. The contention of the assessee that purchases of ₹ 13,73,600/- was shown by his wife in her Return of Income merits no interference with the finding of the CIT(A) as the assessee miserably failed to bring on record any material to show that payments were made from his credit card in respect of purchases made by his wife and in absence of any material to show how and when such repayments were made by his wife to him. 13. Further, we find that the assessee has brought no material before us to show that there was any error in the finding of the CIT(A) that the assessee made peak deposit of ₹ 5,26,869/- on 19.11.2007. Further, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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