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TMI Blog2020 (11) TMI 472X X X X Extracts X X X X X X X X Extracts X X X X ..... count is that the assessee has been paying VAT and such entries are appearing all throughout the year on various dates. Payment of VAT does indicate purchase and sale of some goods, items or services. All these factors thus, go to show that some kind of business activity was carried out by the assessee. If the assessee had shown income u/s.44AD which is presumptive basis for taxation and looking to the nature of bank account entries and regular cash deposits and withdrawals this shows that assessee was doing some kind of business activities and preponderance of probabilities for such activities is definitely goes in favour of the assessee. Assessing Officer has tacitly accepted the business income by accepting the return of income from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s.148 and stated that she has declared income u/s.44AD and she does not have any documentary evidence in support of business activities carried out by during the year. It was stated by the assessee that entire deposits of ₹ 13,61,300/- in the bank account cannot be treated as total income, because there have regular withdrawals from her bank account for the business purpose. Alternatively, it was submitted that since there was were regular deposits and withdrawals, then in that case only earlier deposits be treated as undisclosed income and subsequent deposits may be treated as the source for these deposits. Regarding nature of business assessee explained that, she was engaged in providing coaching facilities to the students, busin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ious cities including Delhi and there are regular withdrawals also which shows that assessee has been making purchase from various vendors and selling to various places in different cities. Further, she has also been paying GST, which is evident from the bank details itself which indicates that she was buying and selling goods. Moreover, when the business income has been accepted by the Assessing Officer, i.e., he has accepted the return of income then the entire deposits cannot be added. 6. Ld. DR, on the other hand, submitted that the onus is upon the assessee to prove the source of deposit and explained the nature of business with cogent evidences. Not a single material or documents was furnished to substantiate that assessee carrie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the students. The aggregate cash deposits in her account for the entire year was ₹ 13,61,300/- though no cogent material or evidence has been filed in support of business activities. However, from a bare perusal of the bank statement which was basis for the addition, it is seen that assessee has received cash from various vendors/ purchasers outside the Delhi and the narration given in the account mentions by cash- Jhansi- Shipri Bazar , by cash cashupl-Solapur , by cash cashupl- Jodhpur , by cash Ajmer , and likewise wherein cash amount has been deposited in her bank account on various dates. However, one very glaring feature from the perusal of the bank account is that the assessee has been paying VAT and such entries ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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