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TMI Blog2022 (5) TMI 1412X X X X Extracts X X X X X X X X Extracts X X X X ..... count of such business or a sum higher than the aforesaid sum as may be declared by the assessee in his return of income notwithstanding anything to the contrary contained in Sections 28 to 43C - This income is to be deemed to be the profits and gains of the said business chargeable of tax under the head profits and gains of business. The said provisions are applicable where the gross receipts paid or payable does not exceed Rs.40 lakhs. As evident from the records that the appellant did not prove her nature of business and the source of credit of Rs.25,00,000/-; and she put forth different stand before the authorities below. Though the learned counsel for the appellant raised a plea that the appellant was represented by an Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rved on the appellant on 17.08.2012. In response, the relevant details were furnished by the appellant to the respondent. Thereafter, an assessment order under section 143(3) of the Act, dated 21.03.2014 came to be passed, making addition of Rs.25,00,000/- as unexplained investment under section 69 of the Act, on the premise that the cash deposits in the Savings bank account do not represent the business receipts claimed to be admitted under section 44AD, for which, the appellant was required to prove the sources for the peak cash balance of Rs.25,00,000/-, but she failed to do so. Challenging the order of assessment, the appellant preferred an appeal before the CIT (Appeals) Salem, who by order dated 23.06.2016, dismissed the appeal, after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n concluding that the cash deposits in the SB account do not represent the business receipts as admitted under section 44AD and that, the source for the peak cash balance of Rs.25,00,000/- was not proved by the appellant and accordingly, made addition of the said amount as unexplained investment under section 69 of the Act. Without properly appreciating the submission of the appellant, the conclusion so arrived at by the respondent was also affirmed by the appellate authorities and hence, the same is liable to be set aside. The learned counsel in support of his contention, placed reliance on a decision rendered by Punjab and Haryana High Court in the case of CIT v. Surinder Pal Anand [(2011) 242 CTR 61 , wherein it was held as follows: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs. 7. The short question that arises for consideration herein is relating to the unaccounted credit of Rs.25,00,000/- in the savings bank account of the appellant. According to the appellant, the said sum is to be taxed at 8% as per section 44AD of the Act, as the same is her business receipts. However, the assessing officer rejected the claim of the appellant and assessed the same under section 69 of the Act, by treating it as unexplained investment, with the following findings: 5.1. The assessee has initially claimed certain sources for the peak deposit of Rs.25,00,000/- and when she was confronted with the possibility of her sources being discredited in view of the facts and propositions expounded in this office letter dated 12. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the assessee in the previous year on account of such business or a sum higher than the aforesaid sum as may be declared by the assessee in his return of income notwithstanding anything to the contrary contained in Sections 28 to 43C of the Act. This income is to be deemed to be the profits and gains of the said business chargeable of tax under the head profits and gains of business. The said provisions are applicable where the gross receipts paid or payable does not exceed Rs.40 lakhs. 9.However, it is evident from the records that the appellant did not prove her nature of business and the source of credit of Rs.25,00,000/-; and she put forth different stand before the authorities below. Though the learned counsel for the appellant r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... additions. The assessee and her authorized representative are unable to produce any evidence in support in their claims even during the proceedings before me. Therefore, I do not find any reason to interfere with the Assessment Order. Hence, this ground of appeal is dismissed. Income Tax Appellate Tribunal 7. We heard the rival submissions and gone through the relevant material. Though, the assessee admitted the income u/s. 44AD, with regard to the sources of cash deposits made in the bank account, initially, she submitted that her nature of business of Spoken English Coaching Class Profession and gave certain sources for the cash deposits made on 18.10.2010 and explained the sources for the cash deposits made on 21.10.2010 as ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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