9911796707
TMI Blog2021 (7) TMI 414X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee is an individual and running liquor shop. She has filed her return of income on 25th September, 2012 declaring total income of Rs. 3,50,336/-. The case of the assessee was selected for scrutiny assessment through CASS. During the assessment proceedings the A.O found certain discrepancies and defects in the books of account and consequently rejected the books of account of the assessee under Sec. 145(3) of the Income tax Act. The Assessing Officer then estimating the income of the assessee by applying G.P Rate 18.33% which was declared by the assessee in the immediately preceding assessment year. Apart from trading addition of Rs. 69,710/- the A.O has also made an addition of Rs. 1,51,386/-on account of unexplained investment in purchases. The A.O noticed that purchases to the tune of Rs. 1,51,386/- made on 22nd February, 2012 have not been disclosed in the audit report. Accordingly, the A.O treated the said purchases as unexplained investment and added to the total income of the assessee. The assessee challenged the action of the Assessing Officer before the CIT(A) but could not succeed. 3. Before the Tribunal the ld. A.R with the assessee has submitted that once the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income by applying the G.P rate 18.33% which was declared by the assessee in the immediate preceding assessment year. So far as the rejection of the books of accounts and estimation of the income by applying G.P rate at 18.33% is concerned the assessee has not challenged the said action of the A.O. Therefore, to that extant the issue of rejection of books of accounts and trading addition has attained finality. The assessee is aggrieved by the addition made by the A.O on account of unexplained investment for purchases made to the tune of Rs. 1,51,386/-on 22nd February, 2012. It is pertinent to note that the A.O has not disputed the fact that the sales shown by the assessee are of inclusive of the alleged unexplained/unaccounted purchases. Therefore, once the books of accounts of the assessee is rejected and the income of the assessee is estimated by applying the G.P rate then no further addition can be made on account of unexplained purchases. Even otherwise the purchases being an item of trading account is covered under the estimation of the income by applying G.P rate. Therefore, once the income of the assessee is estimated by G.P rate no further addition can be made on account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st the facts." 8. After the scrutiny assessment framed u/s 143(3) the A.O reopened the assessment by issuing a notice u/s 148 on 25th March, 2017 whereby the A.O proposed to assess the income on account of deposits made in the bank account of the assessee with Bank of Baroda of Rs. 11,05,000/-. The A.O has recorded that despite the sufficient time elapsed the assessee has not explained the source of deposits of Rs. 11,05,000/- in the bank account maintained with Bank of Baroda and also failed to produce books of account with supporting bills and vouchers. Accordingly, in the absence of any evidence in support of source deposits the A.O made an addition of Rs. 11,05,000/- while framing reassessment u/s 147 r.w.s 143(3). The assessee has challenged the action of the A.O before the CIT(A) but could not succeed. 9. Before the Tribunal the ld. A.R of the assessee has submitted that the assessee has explained the source of the deposits made in the bank account of the assessee being sale proceeds and the deposits were also used by the assessee for payments to the excise department. He has further, submitted that the deposits as well as the payments made by the assessee are part of the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uly claimed & entered in the Books of Accounts and claimed in the Financial Statements. This can be verified from the Bank Statements of A/C no. 3949100000021 BOB, on 10-11-2011 the amount of Rs. 4, 10,920/- which for issuing the Demand Drafts and Draft Commission of Rs. 920/-. The Copy of Bank Drafts made of Rs. 3, 65,000/- and Rs. 45,000/- is enclosed as Annexure 4. It is humbly submitted that the cash Deposits in the Bank A/c enclosed for your reference as Annexure 5 the amount were entered in the Ledger A/c of the Assesse which were rejected in the Original Assessment Proceedings. The Ld. Assessing Officer has proceeded to add the amount u/s as Unexplained Investment which is against the facts &, the amounts are explained and deserves to be deleted. That further it is submitted that the Total Cash Deposits are not of Rs. 11, 05,000/- but of Rs. 8, 68,000/ only. The remaining is Bank Transfers from A/c No. 06980100007271 of Bank of Baroda, of Mr. Rajendra Kesarwani on 31/03/2012 and other of the Appellant A/c 394901000000022 on made on 03/12/2011 or amounts credited on cancellation of drafts on 26/12/2011, the segregation is as under :- Source Amount Credit Cash Transfer ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
