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TMI Blog2015 (11) TMI 1201X X X X Extracts X X X X X X X X Extracts X X X X ..... siness receipt can be treated income only after deducting the relevant expenses in relation to business receipt. Besides it is important to note that all the cash was deposited in the business bank of the assessee and the same was duly disclosed in the balance sheet. On this basis we are inclined to apply the effective rate of income on the undisclosed receipts of the assessee. Hence we allow this ground of appeal to the file of AO with the direction to adjudicate this ground afresh as per law. - Decided in favour of assessee for the statistical purpose. Addition as unexplained money - Held that:- Assessee prayed not to treat the entire sum of ₹ 2,98,520/- to the income of assessee and offered to apply the gross profit rate on the sum deposited with the banks. However, the assessee could not explain the source of money deposited in the bank. It was also found that the same bank account was also not disclosed in the income of return. Therefore, in the absence of any documentary evidence from the side of assessee we are of the view that the addition made by AO and confirmed by Ld. CIT(A) has been correctly done. Therefore we do not interfere into the orders of Authorities be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Branch as unexplained investment. (b) That on the facts and in the circumstances of the case, Ld. CIT(A) has failed to appreciate that cash deposits were made in O.D. A/c No. 32 out of cash sales of meat in order to keep the liability within the sanctioned limit. (c) That even assuming that cash Sales as represented by cash deposits in OD A/c No. 32 are not included in disclosed turnover, Ld. CIT(A) is wrong and unjustified in confirming the total deposit of ₹ 19,58,770/- as undisclosed income instead of the profit element embedded in the such undisclosed sales. 3. That on the facts and in the circumstances of the case, and keeping in view similar logic as stated in ground No. 2 (c) Ld. CIT(A) is wrong in confirming addition of ₹ 2,98,520/- as deposits in C.C A/c No. 345 and Saving A/c No. 8913 with Allahabad Bank without considering withdrawals from these accounts which represented business expenses. 4. That on the facts and in the circumstances of the case, Ld. CIT(A) while confirming the action of Assessing Officer to deny exemption of ₹ 25,000/- as agricultural income has relied on irrelevant facts and extraneous considerations. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. 6. We have heard the rival parties and perused the material available on record. Ld. AR has submitted a paper book running from page nos. 1 to 41. Before us the Ld. AR of assessee submitted the pass-book issued by post office in support of recurring deposit account no. 410299 wherein withdrawal of ₹ 81,115/- was clearly recorded on dated 31-07- 2004. Out of this amount of money, a sum of ₹ 80,000/- was invested in the KVPs. The pass book of the post office for such FD account no. 410299 is placed at pages 16 to 25 of the paper book. However for the another investment of ₹ 35,000/- in the KVPs, the Ld AR has taken a new plea that the amount of money invested was out of the maturity of another recurring deposit vide no. 401273 with the post office for the amount of ₹ 40,557/-.The pass book of the post office for such FD account no. 410273 is placed at pages 26 to 35 of the paper book.In respect of this additional FD account no. 410273 the Ld. AR submitted that this FD statement amounts to additional evidence not submitted before authorities below so the Hon ble Tribunal may confine the findings only in respect of disputed addition of ₹ 80,000/-. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... belongs to his wife. Hence the CIT(A) disregarded the claim of the assessee and upheld the order of the AO. Aggrieved assessee preferred appeal before the Tribunal. 9. Before us the Ld. AR of assessee has pleaded that treating the entire cash deposit as the income of the assessee is against the principal natural justice. The bank account where cash was deposited was a bank current account and used only for the business purpose. This account was duly reflected in the balance sheet of the assessee. So all the transactions should be treated business transactions. The Ld. AR prayed to tax the business receipt by applying GP ratio. The assessee also suggested some alternate method for applying the tax on the receipt of money in bank which was presented in the form of cash flow. On the other hand, Ld. DR relied on the orders of Authorities below. 10. We have heard rival contentions and examined the facts and circumstances of the case. The assessee failed to substantiate the argument that the cash deposit belongs to his wife/ daughter. It was observed that the Ld AR submitted before the AO that the cash receipt belongs to the daughter of the assessee but he changed his statement be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wever, the assessee could not explain the source of money deposited in the bank. It was also found that the same bank account was also not disclosed in the income of return. Therefore, in the absence of any documentary evidence from the side of assessee we are of the view that the addition made by AO and confirmed by Ld. CIT(A) has been correctly done. Therefore we do not interfere into the orders of Authorities below. This ground of assessee s appeal is dismissed. 13. Coming to last ground raised by assessee for the disallowance of agricultural income of ₹ 25,000/-. During the assessment proceedings assessee has shown an income of ₹ 25,000/-which the assessee claimed exempted from tax. The assessee treated the income from the broiler business as income from agricultural activity, hence claimed exemption. However, the AO disregarded the claim of the assessee and added this income of ₹ 25,000/- to the total income of the assessee. Aggrieved, assessee preferred appeal before Ld. CIT(A) who has upheld the order of AO. Now, aggrieved by the order of CIT(A) , assessee preferred appeal before Tribunal. 14. Before us the Ld. AR submitted that the assessee has been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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