9911796707
TMI Blog2022 (9) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... by AO that assessee had failed to file any evidence regarding his business activities is not a good reason as his return of income filed on the basis of same business has been accepted for making additions on account of cash deposits. AO has started with the returned income based on the basis of such business only. Therefore, we do not agree with the findings of AO - Since all the documents supporting the argument of the assessee are available in the file and case is very old which relates to AY 2014-15 there is no point in setting aside the matter to ld. CIT(A) who had passed an ex-parte order and has not decided the issue on merits. Therefore, on the basis of documents available on record, direct the Assessing Officer to calculate the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd is simple based on mere hypothesis, conjuncture surmises and needs to be cancelled and the income as returned by the appellant be accepted. 6. Because the order of the Learned CIT (Appeal) is arbitrary, capricious, misconceived, erroneous and against the principal of natural justice. 2. The ld. AR, at the outset submitted that assessee is a small time trader who owns a bakery shop and also enjoys income from trading in Khoya. It was submitted that the return of income was filed declaring gross receipts of Rs. 22,95,763/- and Rs. 2,15,330/- was declared as net income of the assessee. The ld. AR submitted that during the year under consideration, the Assessing Officer required the assessee to explain cash deposits of Rs. 53,30, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmission of the assessee was not accepted. 3. The ld. AR submitted that assessee is a very small time trader and is not financially sound also and it will be appropriate if the appeal of the assessee is decided here itself on the basis of documents already on record and there is no fresh evidence being filed as the bank statement was also available with the Assessing Officer and which he had relied for the purpose of making additions. 4. The ld. DR, fairly agreed that the entire amount of deposits could not have been added as there is clear evidence of making payments and for making substantial withdrawals from the said account. 5. I have heard the rival parties and have gone through the material placed on record. I find that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and has also accepted the net profit declared by the assessee on the basis of turnover therefore there is no reason to reject the contentions of the assessee that on the deposits in the bank account only net profit rate of 8% should have been applied. The Assessing Officer did not accept the contentions of the assessee by holding that the assessee failed to produce any evidence regarding his business activities and did not produce cash book day book etc. While holding so, the Assessing Officer ignored the provisions of Section 44AD of the Act, which allows the assessee to calculate his income on the basis of turnover and which enables assessee not to maintain books of account. The reasons cited by Assessing Officer that assessee had failed ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
