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TMI Blog2015 (9) TMI 653X X X X Extracts X X X X X X X X Extracts X X X X ..... income from business by applying net profit @ 5% of the business receipts by ignoring the material facts that the assessee had failed to prove the sources of cash credits. 2. The assessee is an employees of Indian Airlines, accordingly he filed his return declaring an income of Rs. 1,82,610/-. The same was accepted as correct under Section 143(1) of the Income Tax Act, 1961. Consequently, the notice u/s. 148 of the Act was issued. As per the information received it was found that the assessee is having bank account with CITI Bank and with HSBC besides having a separate salary account with Central Bank of India. The Bank accounts with CITI Bank, Central Bank of India and HSBC Ltd. shows that total deposits amounting to Rs. 2,61,800/-, Rs. 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ashita Murgai, who is a separate assessee, declared here salary during the year of Rs. 6,38,345/- and filed here ITR accordingly. In the said A/c the entire deposits pertains to the credit of her salary received during the year from her employer, therefore, by taking the said deposits of Rs. 5,34,658/- in her bank a/c during the year, presumed to be treated as unaccounted deposits of the assessee vitiates the proceedings initiated u/s. 147 of the Act by the Assessing Officer, therefore, it was challenged before the Assessing Officer primarily prior to the commencement of the proceedings, that the said proceedings so initiated after recording the reasons for which the copy has also been supplied are against the law and to the facts of the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has not maintained and was not required to maintain any books of accounts for the said transactions under the provisions of law contained u/s 44AF of the Act, therefore, 5% profit deduced/derived there from could maximum be added to the income of the assessee from undisclosed sources which comes to Rs. 13,090/- and no further additions could have been warranted and to have been made in the income of the assessee, as has been done by the Assessing Officer. The additions made by the Assessing Officer in the income of the assessee of Rs. 2,61,800/- is perverse to the provisions of and to the facts of the case. That in support of assessee's contention, the copies of purchase bills complete in all respects, confirming the procurement o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r assessment year the tax effect was below four lakhs hence for A.Y. 2003-04, 2004-05, 2005-06, 2007-08 and 2008-09 appeal was not filed by the Department. The DR relied upon the Assessment Order and further pointed out page 4 of the Assessment Order which is reproduced herein below :- "The above stated contention cannot be accepted since no documentary evidence has been furnished along with the letter suggesting that such credits in the bank accounts are on account of sales made to the customers and deposited in the bank to pay off the credit card dues. Further the assessee's contention of doing business on which profit u/s 44AF (comes @ 5%) has been earned is also not acceptable since no declaration has been made in the return originally ..... X X X X Extracts X X X X X X X X Extracts X X X X
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