9911796707
TMI Blog2015 (12) TMI 1412X X X X Extracts X X X X X X X X Extracts X X X X ..... . Assessing Officer failed to substantiate his conclusion for computing the profit at @ 10% of the turnover. Taking into consideration the finding of the Commissioner of Income Tax(A), we do not see any reason to interfere in his orders in all the assessment years. Thus, grounds of appeal of the assessee as well as by the revenue on this issue, in all these assessment years are rejected. The Ld. Assessing Officer shall compute the profit from the benami bank accounts @ 2.45% of the turnover - Decided against revenue. Addition on account of cash credit - CIT(A) deleted the addition - Held that:- In the absence of any infirmities having been pointed out in the reasoning adopted by the ld. CIT(A), we see no reasons to disturb the conclusion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. The assessee before us is, as the Assessing Officer himself puts it, one of the entities in Rathi group of cases which was subjected to survey proceeding on 31st January, 2006. As the assessee was unable to produce the books of account, which were stated to have been destroyed in the floods, the gross profit was estimated @ 10% - as against 5.07% claimed by the assessee. The Assessing Officer further noted that while the books of accounts of the assessee show deposit of ₹ 3,00,000/- from Gitadevi R. Rathi and payment of interest of ₹ 3,115/- on the same, but the assessee has not been able to discharge obligation of proving genuineness of the loan transaction. It was in this backdrop that the Assessing Officer added back ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the course of appellate proceedings, the ld. AR submitted that the confirmation of the depositors along with name, address and PAN were submitted to the AO during the course of assessment proceedings. The ld. AR filed copies of the same before me also. Further, regarding addition to capital, it was submitted that complete confirmations and source was filed before the AO. Copies of the same have been filed before me also. After going through the details, I m of the considered view that the identity and creditworthiness of the creditor stands established and there was no justification in treating this amount as unexplained cash credits and that the source of capital addition is also satisfactorily explained. Addition on this account is dire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... maintained and income has been offered, accounts are audited. Thus, Assessing Officer formed an opinion that expenses relatable to benami transaction must have been debited by the assessee in the regular business. Therefore, a straight gross profit rate to the turnover is to be applied for working out of the profit. The Ld. Assessing Officer lost sight of the fact that turnover in the benami account is multi-fold than the whole business in the regular books of accounts. The expenditure to this magnitude cannot be adjusted in the regular books of accounts. The assessee has specifically pointed out that turnover of regular books of accounts would even less than packing expenses in the benami transaction. Therefore, Assessing Officer was not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue, as to why alleged books of accounts should not be rejected. But after rejection of the books, the ld. Assessing Officer failed to substantiate his conclusion for computing the profit at @ 10% of the turnover. Taking into consideration the finding of the Commissioner of Income Tax(A), we do not see any reason to interfere in his orders in all the assessment years. Thus, grounds of appeal of the assessee as well as by the revenue on this issue, in all these assessment years are rejected. The Ld. Assessing Officer shall compute the profit from the benami bank accounts @ 2.45% of the turnover and assessed it in the hands of Shri S.N. Rathi individual. 6. As regards the grounds of appeal number two and three also, we find that no ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
