2019 (6) TMI 1114

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..... on peak cash credit also estimated the unaccounted profits on the deposits found in the bank account of the assessee If the AO was of the view that such deposits were out of unaccounted income of the assessee, there was no reason with the AO to estimate profits on such deposits on the basis of the turnover. CIT(A) has also given relief to the assessee observing that the assessee himself has also declared certain profits in respect of its activities of sale / purchase of vehicles. It is apparent that the impugned additions have been made by the lower authorities on estimation basis. However, there was no reliable or un-rebutted evidences on the file to prove that the assessee had actually furnished inaccurate particulars of income or conceal .....

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..... the account of the assessee. On being asked to explain in this aspect, the assessee explained to the Assessing Officer that the said amount belonged to the clients / intending purchasers who used to handover certain amounts for the purchase of the vehicles of their choice through the assessee and as and when such vehicles are found available for the sale. However, the Assessing Officer did not get satisfied with the above explanation of the assessee and made the addition of ₹ 8.41 lacs taking the figure of peak cash credited in the account of the assessee. Apart from that, the Assessing Officer estimated 10% of the profits on the total amount found deposited in the bank account of the assessee. 5. In appeal, the Ld. CIT(A) after con .....

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..... naccounted income of the assessee, there was no reason with the Assessing Officer to estimate profits on such deposits on the basis of the turnover. The Ld. CIT(A) has also given relief to the assessee observing that the assessee himself has also declared certain profits in respect of its activities of sale / purchase of vehicles. Under the circumstances, it is apparent that the impugned additions have been made by the lower authorities on estimation basis. However, there was no reliable or un-rebutted evidences on the file to prove that the assessee had actually furnished inaccurate particulars of income or concealed particulars of his income. Though, the additions have been made by the Assessing Officer and further confirmed by the Ld. CI .....

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