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TMI Blog2021 (3) TMI 344X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee at 8% of the gross turnover instead of 10% adopted by the A.O. Addition u/s 69C/68 - contention of the A.R. is that once the income of the assessee estimated by applying the section 44AF of the Act, there cannot be any further addition for any lapse in the books of accounts - HELD THAT:- In the present case, the plea of the assessee that payment towards various cards like Citi Bank Card, ICICI Card, American Express card out of earlier withdrawals used for the business purpose and same was redeposited towards credit card payments and there should be due credit to be given. In our opinion, where the credit card withdrawals on earlier occasion from various credit cards was used for business purpose are to be established by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee are partly allowed. - SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER Appellant by : Shri Ravishankar S.V., A.R. Respondent by : Shri Sunil Kumar Agarwal, D.R. ORDER PER CHANDRA POOJARI, ACCOUNTANT MEMBER: These three appeals filed by the assessee are directed against different orders of CIT(A) for the above assessment years. The grounds in these appeals are common and there is only change in the figures in respect of different assessment years, which are as follows: 1. The order of the learned CIT(A) in so far as it is against the Appellant is opposed to law, equity and weight of evidence, natural justice, facts and circumstances of the case. 2. The Appellant denies himself to be liable to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he income from business estimated under the facts and circumstances of the case. 8. The learned CIT(A) is not justified in confirming the addition of ₹ 16,18,606/- by invoking the provisions of section 69C of the Act treating the payment made through the credit cards as unexplained expenditure under the facts and circumstances of the case. 9. The learned CIT(A) is not justified in law and in facts in confirming the addition of ₹ 13,42,500/- as unexplained cash credits under the facts and circumstances of the case. 10. The appellant denies the liability to pay interest under section 234A and 234B of the Act in view of the fact that there is no liability to additional tax as determined by the assessing officer. Without prejudice, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... round in all these appeals are dismissed as not pressed. 4. The next ground in this appeal is with regard to the estimation of income @ 10% of the total turnover. The details of the additions of A.O. is as follows: Particulars AY 2010-11 AY 2011-12 AY 2012-13 Gross Turnover 1,98,90,176 68,20,153 1,01,43,265 Turnover adopted by the A.O. 2,05,45,006 85,70,401 1,01,43,265 Estimation on sales by AO @ 10% 20,54,500 8,57,040 10,14,326 Income computed by the appellant 8,11,380 5,40,083 7,62,168 % of Turnover as per computation 4.08 7.91 7.51 Additions in appeal 12,43,120 3,16,957 2,52,158 In these assessment years, the income of the assessee estimated at 10% of gross turnover. The contention of the Ld. A.R. is that it is too high and it should be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... follows: Sl. No. Assessment year Addition u/s 69C of the Act (Rs.) Addition u/s 68 of the Act (Rs.) 1 2010-11 16,18,606/- 13,42,500/- 2 2011-12 7,99,339/- 4,77,243/- 3 2012-13 8,02,469/- 4,00,053/- 8. The contention of the A.R. is that once the income of the assessee estimated by applying the section 44AF of the Act, there cannot be any further addition for any lapse in the books of accounts. In these assessment years, except AY 2011-12, the turnover of the assessee is more than ₹ 1 crore strictly speaking provision of section 44AF of the Act cannot be applied. Since the assessee is not maintaining the books of accounts, the A.O. estimated the income of the assessee by taking the clue from the section 44AF of the Act. As such in our ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In our opinion, where the credit card withdrawals on earlier occasion from various credit cards was used for business purpose are to be established by the assessee by filing necessary evidence and establishing that assessee has used the credit card withdrawals for business purpose and thereafter it has withdrawn the money from the business to clear credit card dues. Accordingly, we remit this issue for the purpose of establishing the nexus between credit card withdrawals and by using it for business purposes and repay the card dues out of business receipts. 9. Further, Ld. Counsel for the assessee relied on the judgement of Hon ble Karnataka High Court in the case of Delux Roadlines Pvt. Ltd. in ITA No.213/Bang/2014 dated 14.10.2014 for th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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