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TMI Blog2016 (2) TMI 1274X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) was justified in considering the bank deposits as relating to business transactions. However, we are unable to understand as to why he considered them as relating to spare parts business and not related to mixer grinder business. Be that as it may, we notice that the Ld CIT(A) has estimated the rate of profit on the basis of statement given by the assessee and hence we do not find any reason to interfere with his order on this issue. Estimation of profit from sale of mixer-grinders - This addition has also been made on the basis of statement given by the assessee, wherein he had stated that he is selling approximately 1500 pieces of mixer-grinders in a year - AO has placed full reliance on the statement given by the assessee, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 60/- estimated by the ld. CIT(A) out of bank deposits is required to be telescoped against the above said income estimated by us. We modify the order of Ld CIT(A) and direct the AO to restrict the addition relating to bank deposits and sale of mixer grinders to ₹ 4,02,500/-. - I.T.A. No.6485/Mum/2012 - - - Dated:- 3-2-2016 - S/Shri B.R.Baskaran, AM And Amarjit Singh, JM Assessee by: Shri Shyam C Agarwal Revenue by: Shri Somanath C Ukkali ORDER B R Baskaran, AM: The assessee has filed this appeal challenging the order dated 17.8.2012 passed by the ld. CIT(A)-34, Mumbai for the assessment year 2008-09 on the following issues: a) Estimation of profit from spare parts business ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e confirmed the income of ₹ 4,50,000/- estimated from sale of mixer-grinders. Aggrieved, the assessee has filed this appeal before us. 4. The first issue relates to the income estimated by the ld. CIT(A) on the cash deposits found in the bank account of the assessee. The ld. CIT(A) was of the view that the deposits made by the assessee in the bank account represents business transactions pertaining to spare parts business and accordingly estimated profit there from at the rate of 12%, since the assessee had admitted in the statement that he has been making profit at 10 to 12% from trading in spare parts. Since the assessee is carrying on business in the mixer grinders and spare parts and since there has been successive depos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer has placed full reliance on the statement given by the assessee, which he has given on approximate basis. Further, the AO has not allowed any deduction towards expenses. We have noticed that the assessee has also stated that his income from spare parts business ranges from ₹ 5000 to 6000/- per month approximately, meaning thereby he is earning a sum of ₹ 60,000/- to 72,000/- per year from the business of spare parts. The ld. CIT(A) has, however, estimated the income from spare parts at ₹ 1,27,560/-, which is contrary to the statement given by the assessee. 7. Further, the Ld CIT(A) has not explained as to why he has considered the bank deposits as representing the transactions relating to spare parts business ..... X X X X Extracts X X X X X X X X Extracts X X X X
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