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TMI Blog2017 (1) TMI 1728X X X X Extracts X X X X X X X X Extracts X X X X ..... are ground no.2 and 3 which are against the enhancement of the income at the rate of 1.50% on total cash credit in the banks by the ld. CIT(A) as against the 1.00% applied by the AO. 4. Facts relating to the issue are that the assessee filed return of income on 14.10.2009 declaring total income of Rs. 1,09,080/-. The AO received information from ITO-Ward 8(4), Surat, Gujarat vide letter dated 5.1.2012 that the assessee proprietor of M/s Darshan Trading Co., M/s Ratan Enterprises and M/s Jayesh Corporation has entered into bogus and hawala transactions with Shri Saurabh Jain who has been into the business of providing hawala/accommodation entries without doing any actual business. Thereafter the AO reopened the assessment by issuing notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n this particular decision, he should follow and adopt the net profit @ 1.5% instead of 1% only. In this connection, a show cause notice u/s 251 (1 )(a) dated 31.10.2014 was issued to the appellant as to why the difference of 0.5% .i.e. Rs. 91,34,654/-of the total income should not be enhanced as net income of the appellant. The AR of the appellant appeared in response to the show cause notice on 10.11.2014 and objected to the proposed enhancement. But the verbal objection without any documentary evidence/case laws to support his objections not acceptable. I have considered the case law relied upon by the AO, and observed that the estimate made by the AO is not on the higher side and arbitrary as challenged and objected by the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... very reasonable and not arbitrary. Therefore net income comes to Rs. 2,73,98,537/-i.e., an enhancement of Rs. 91,32,846/- i.e.,(182,65,691/- +Rs. 91,32,846). Therefore, this ground of appeal is dismissed." 6. The ld. AR submitted before the Bench that the ld.CIT(A) has enhanced the assessment by estimating the income at 1.5% of the total cash credit entries in the book pass books/statements of the assessee and his proprietary concerns. The ld. AR submitted that total cash credit entries as calculated by the AO at Rs. 1,82,65,69,168/- was not correct as the AO also included the various cheques/RTGS returned unpaid and inter-bank transfers in the various bank accounts of the assessee and his proprietary concerns which was substantiated and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... documentary evidences/details as required by the AO. Therefore the AO has no option but to proceed ex-pare and frame the assessment on the basis of information available on record accordingly framing assessment by estimating the income of the assessee at !% of total credit appearing in the banks of the assessee which was further enhanced by the FAA in the appellate proceedings to 1.5% . During the course of hearing the ld.AR took us through the bank statements of the assessee and his proprietary concerns of Rajkot Nagrik Sahakari Bank, Axis Bank etc of and pointed out various anomalies and mistakes in the arriving at total credits in the various banks on the basis of which the income of the assessee was estimated. We find that there are sev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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