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TMI Blog2017 (3) TMI 681X X X X Extracts X X X X X X X X Extracts X X X X ..... s can be seen from the trading results. Thus, argument on payment of excise rental at higher rate does not stand. As seen from the order of the CIT(A), Ld.CIT(A) followed the decision in the case of M/s. Amaravathi Wine Shop [2012 (8) TMI 706 - ITAT, HYDERABAD] and that assessee has not made out any case to differ from the estimation of profit at 5% on cost of stock put to sale, subject to income from the business is not less than the profit earned as per the P&L A/c. Cash deposits in the bank account - Held that:- If it is a money deposited earlier and withdrawn and utilised in the business the same would not be available for further deposits. Since the same was not shown in the balance sheet as on 31-03-2008, the credit for the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld not be remitted on that day. 02-04-2016 and 03-04-2016 being public holidays, the appeal could be filed only on 04-04-2016. Thus, there was a delay of three days. Considering the prayer and objections of the Ld.DR, the three days delay is condoned and appeal is admitted. 2. Briefly stated, assessee is engaged in the business of retail trade in liquor. He filed return of income of ₹ 3,20,180/-. The Assessing Officer (AO) has examined assessee s transactions and found that assessee did not comply with the direction for production of books of account, therefore, invoked the ITAT order in another case and estimated the profit at 25% on the purchases and income was estimated at ₹ 5,50,715/-. In addition to that, AO also found t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing not less than the returned income. Assessee is aggrieved on the above direction. With reference to the deposits in the bank account, after considering assessee s submissions that there are withdrawals in the earlier year to an extent of ₹ 8 Lakhs (drawn on 22-03-2008) and the payments to AP Beverage Corporation are fully recorded in the books of account, the Ld.CIT(A) gave a finding that the sequence of transactions is that deposits were followed by withdrawals and not withdrawals by the deposits. Therefore, the entire cash deposits made in the bank account represents the suppressed income of the appellant. The addition was accordingly confirmed. Assessee is also aggrieved on the above confirmation of the amount. 4. It was the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5-2008 4,00,692 1,00,500 4,00,000 1,01,192 07-05-2008 1,01,192 -- 20,000 81,192 08-05-2009 81,192 3,00,000 -- 3,81,192 09-05-2009 3,81,192 2,00,000 -- 5,81,192 Peak balance 28-05-2008 5,81,192 -- 1,00,000 4,81,192 13-06-2008 4,81,192 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... however, relied on the orders of the AO and CIT(A) and submitted that assessee has maintained an unaccounted bank account, the transactions of which are not reflected in the books of account. It was submitted that there is enough evidence that assessee has earned incomes outside the books of account. It was also further submitted that since books of account were not submitted for verification, CIT(A) order of estimation at 5% based on the ITAT order is to be approved. With reference to cash deposits, Ld.DR relied on the order of the CIT(A). 6. I have considered the rival contentions and perused the details placed on record. As far as the direction of the CIT(A) in estimating the income at 5% of the stock put to sale, this is in tune with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also furnished a peak working to justify the total addition is not warranted. As seen from the bank account, there are deposits and withdrawals which may be pertaining to the business. But assessee chose not to reflect the transactions in the books of account or in the statement of accounts, till it was pointed out by the AO in the assessment procedure. Further, it was noticed that the balance sheet as on 31-03-2008 indicates that assessee s capital was only to the extent of ₹ 4,31,041/-. What happened to ₹ 8 Lakhs withdrawn as on 22-03-2008 was not explained. If it is a money deposited earlier and withdrawn and utilised in the business the same would not be available for further deposits. Since the same was not shown in the ba ..... X X X X Extracts X X X X X X X X Extracts X X X X
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