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TMI Blog2020 (1) TMI 474X X X X Extracts X X X X X X X X Extracts X X X X ..... AO could be a receipt from business transactions also. In view of these peculiar facts and circumstances of the case, direct the AO to treat all the unexplained cash credits also as the business turnover of the assessee and estimate the income thereon at the same rate at which the disclosed income is brought to tax. - Decided in favour of assessee. - I.T.A. No. 518/HYD/2018 (Assessment Year: 2014-15) - - - Dated:- 4-12-2019 - SMT. P. MADHAVI DEVI, JUDICIAL MEMBER For Assessee: Shri K.A.Sai Prasad, AR For Revenue: Shri Nilanjan Dey, DR ORDER This appeal filed by the assessee for the AY.2014-15, is directed against the order of the Commissioner of Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvinced with the contentions of assessee in toto. He therefore asked the assessee to explain why the peak credit of ₹ 15,14,186/-, appearing as on 25-07-2013 in the SB A/c of the assessee should not be treated as un-explained cash credit u/s.68 of the Act. Since the assessee did not offer any substantial evidence, the AO brought the same to tax u/s.68 of the Act. 3.2. Aggrieved, the assessee preferred an appeal before the CIT(A), who confirmed the addition. 4. Before the CIT(A), the assessee had also contended that the assessee has no other source of income other than Kirana business and therefore the unexplained deposits may also be treated as receipts from Kirana business and only the profit element ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , supported the orders of the lower authorities and also placed reliance upon the following decisions: i. Kale Khan Mohammad Hanif Vs. CIT (1963) [50 ITR 1] (SC); ii. CIT Vs. Devi Prasad Vishwanath (1969) [72 ITR 194] (SC); iii. CIT Vs. Maduri Rajaiahgari Kistaiah (1979) [120 ITR 294] (AP); 7. Having regard to the rival contentions and material on record, I find that in the case of Kale Khan Mohammad Hanif Vs. CIT (Supra), the assessee there-in was a trader, carrying on two businesses and he had submitted a return but as his accounts were not found to be complete and reliable, AO had assessed the Gross Profits of the business as certain percentage of total sales, which had also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns, but the peak cash credit added by the AO and confirmed by the CIT(A) also cannot be upheld because the assessee had declared the gross turnover of ₹ 30,00,000/- which is also part of the cash deposits. Therefore, the peak credit worked out by the AO could be a receipt from business transactions also. In view of these peculiar facts and circumstances of the case, I direct the AO to treat all the unexplained cash credits also as the business turnover of the assessee and estimate the income thereon at the same rate at which the disclosed income is brought to tax. 8. In the result, the appeal of assessee is allowed. Order pronounced in the open court on 4th December, 2019 - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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