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TMI Blog2022 (6) TMI 454X X X X Extracts X X X X X X X X Extracts X X X X ..... d reasonable to estimate the income of the assessee as reflected in the entries appearing in the undisclosed bank account maintained with Bank of Baroda by applying net profit rate of 10%. Now, in the audited income and expenditure account prepared and furnished by the assessee, the net profit as reflected in the transactions appearing in the undisclosed bank account is shown at around 20% and keeping in view all the facts of the case including the fact that expenditure was incurred by the assessee in cash which is not fully verifiable,it would be fair and reasonable to estimate the income of the assessee from the transactions as reflected in the undisclosed bank account maintained with Bank of Baroda at 25% of the gross receipt of Rs.30,53 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00/- in the total sales/receipts as declared by the assessee at Rs.1,24,89,322/- and the total sales/receipts as reflected in Form No.26AS at Rs.1,44,96,122/-. In this regard, it was explained by the assessee that one new current account opened with Bank of Baroda was omitted to be accounted for in the books of accounts and therefore receipts and expenses of business made through the said new account had remained to be accounted for. On perusal of the bank statement of the said account, the Assessing Officer however found that the total receipts/deposits made therein were to the tune of Rs.46,63,371/-. In this regard, the explanation offered by the assessee was found to be partly accepted by the Assessing Officer and accordingly the receipt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion and in his remand report submitted to the learned CIT(A) on 14.08.2020, the Assessing Officer commented that keeping in view the nature and character of assessee s business as well as the entries appearing in the bank account of the assessee maintained with Bank of Baroda, it would be fair and reasonable to estimate profit earned by the assessee at 10% of the undisclosed credit entries as reflected in the said bank account. The learned CIT(A) did not agree with this comment made by the Assessing Officer in his remand report. According to him, the onus was on the assessee to establish his claim of expenses on the basis of relevant accounts, supporting bills, vouchers etc. which were required to be duly audited and since the assessee, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The learned DR, on the other hand, has contended that this audited income and expenditure account furnished by the assessee for the first time before the Tribunal requires verification and the matter, therefore, may be restored to the file of the Assessing Officer for giving him an opportunity to verify the same. Although this contention raised by the learned DR has some merit, I am of the view that no meaningful purpose will be served by sending the matter back to Assessing Officer for verification keeping in view that the matter was already remanded by the learned CIT(A) to the Assessing Officer earlier and in his remand report the Assessing Officer himself accepted the claim of the assessee of having incurred the expenditure through the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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