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TMI Blog2018 (8) TMI 1909X X X X Extracts X X X X X X X X Extracts X X X X ..... e reasonable to total cash deposits of ₹ 14,30,000 which worked out to ₹ 1,14,400 and consequently, this much addition being net profit of business is sustained, considering fact that this bank account stands disclosed from A.Y. 2006-07 and therefore, these cash depo sits could be linked to outside sales being carried out in the name of M/s. Naresh Silk Mill. Therefore, considering the entirety of facts and taking a holistic approach in the matter, we are of the considered view that addition of net profit at ₹ 1, 14,400 is upheld and balance addition of ₹ 13, 15,600 is deleted. - Appeal of the assessee is partly allowed. - I.T.A. No. 1150/Ahd/2014 - - - Dated:- 10-8-2018 - Shri C .M. Garg, Judicial Member And ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duly confirmed by her husband in his statement recorded under section 131 by the AO and also by her in her statement recorded under section 131 of the Act. Further, a sum of ₹ 1,45,000 was received trough cash back from debtors to whom were advances were given. It was further submitted that the assessee has filed her return of income in ITR-4 in which only the proprietorship accounts were to be disclosed and not the personal set of accounts. Therefore, the assessee has not included this bank account in the ITR-4 of the return of income filed by the assessee. The assessee`s turnover is below prescribed limits hence, she was not required to maintain books of accounts as per provisions of section 44AF/44AD. However, in spite this she ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5.57% is adopted then, the addition amounts to ₹ 79, 651 and the addition if any should be restricted to the said amount only. 4. Per contra, the ld. Sr. DR relied on the order of lower authorities and submitted that the assessee has not disclosed this bank account in her return of income. Further, the cash in hand of ₹ 5.03 lakhs is not supported by regular books of accounts, as personal set of books of accounts is not reflected in her ITR-4. It was also submitted that when the assessee and her husband were maintaining bank account then what was the need of gift in cash, hence, explanation of gift is also not acceptable. Therefore, it was vehemently argued that the AO has correctly made the addition of cash deposits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh Silk Mill be applied to total cash deposits has also force therein. In view of this matter, we are of the considered opinion that net profit rate of 8% as per provisions of section 44AD would be reasonable to total cash deposits of ₹ 14,30,000 which worked out to ₹ 1,14,400 and consequently, this much addition being net profit of business is sustained, considering fact that this bank account stands disclosed from A.Y. 2006-07 and therefore, these cash depo sits could be linked to outside sales being carried out in the name of M/s. Naresh Silk Mill. Therefore, considering the entirety of facts and taking a holistic approach in the matter, we are of the considered view that addition of net profit at ₹ 1, 14,400 is upheld ..... X X X X Extracts X X X X X X X X Extracts X X X X
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