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TMI Blog2015 (10) TMI 1391X X X X Extracts X X X X X X X X Extracts X X X X ..... case the Income-tax Officer may tax the cash credit entered in the books of account of the business, and at the same time estimate the profit must, however, depend upon the facts of each case. Therefore, the facts have to be examined before arriving at any conclusion. The gross receipts of the assessee were at ₹ 1,87,25,469, 5 per cent. of which will come to ₹ 9,36,273, which is more than the sundry creditors shown at ₹ 8,81,683. Further, since books of account were rejected, the detailed scrutiny of sundry creditors was not done. There is no other source of income earned by the assessee. In view of the above discussion, we are of the opinion that no separate addition is called for in regard to sundry creditors. - Decided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officer. As far as addition regarding sundry creditors is concerned, the learned Commissioner of Income-tax (Appeals) confirmed the addition, inter alia, observing that in case of Sai Construction v. ITO [2010] 127 TTJ (Cuttack) 15; ITO v. Nityananda Swain (I. T. A. No. 491/ Ctk/2011/C.O.No. 35/CTK/2011) and Nityananda Swain v. ITO (I. T. A. No. 529/CTK/2011) dated March 22, 2012, it has been held that notwithstanding the estimation of profit addition on account of unexplained deposits can be made. Being aggrieved by the order of the learned Commissioner of Income-tax (Appeals), the assessee is in appeal before us and has taken the concise grounds of appeal as under : 1. That the estimate of profit at 6 per cent. made by the Com mis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have considered the submissions of both parties and perused the record of the case. The hon'ble Supreme Court in the case of CIT v. Devi Prasad Vishwanath Prasad [1969] 72 ITR 194 (SC) has, inter alia, observed that whether in a given case the Income-tax Officer may tax the cash credit entered in the books of account of the business, and at the same time estimate the profit must, however, depend upon the facts of each case. Therefore, the facts have to be examined before arriving at any conclusion. The gross receipts of the assessee were at ₹ 1,87,25,469, 5 per cent. of which will come to ₹ 9,36,273, which is more than the sundry creditors shown at ₹ 8,81,683. Further, since books of account were rejected, the detailed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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