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TMI Blog2022 (9) TMI 816X X X X Extracts X X X X X X X X Extracts X X X X ..... imed expenditure relatable to his professional receipts of the relevant year and arrived at net profit of Rs. 3,18,600/-. Hence, the Ld. Pr. CIT opined that the entire undisclosed cash deposits of Rs. 11,68,000/- should have been treated as unexplained investment u/s. 69 of the Act and taxed @30% as contemplated u/s. 115BBE of the Act instead of 8% of the receipts and treated the order of the AO as erroneous and prejudicial to the interest of the revenue. CIT has directed the AO to recompute the total income by passing a consequential order. Hence no infirmity in the order passed u/s. 263. Grounds raised by the assessee's dismissed. - I.TA. No. 419/Viz/2019 - - - Dated:- 19-8-2022 - SHRI DUVVURU RL REDDY , HON BLE JUDICIAL MEMBER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional receipts during the year under consideration and the same were not disclosed while filing the return of income for the A.Y. 2014-15. The assessee agreed to offer income @8% on the same and the AO accepted the explanation rendered by the assessee. Accordingly, the AO completed the assessment by making an addition of Rs. 93,470/- being 8% of the above cash deposits. 3. The case was taken up by the Ld. Pr. CIT u/s. 263. The Ld. Pr. CIT observed that the assessee during the assessment proceedings admitted professional receipts amounting to Rs. 4,55,800/- and arrived at net profit of Rs. 3,18,600/- (being 69.89%) of the receipts), after claiming the expenditure relatable to his professional receipts of the year. It is therefore obvious ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hdrawn on 03.04.2014 (correct date of withdrawal is 30.09.2013) for the purpose of doing some business. As the same was not materialized, the loan amount was deposited in the bank account. During the assessment proceedings the assessee had accepted the said receipts as his professional receipts and admitted net profit of 8% thereon in order to avoid any further litigation with the department. The Ld. Pr. CIT observed that the assessee before the AO in respect of cash deposits, submitted initially, that he had taken loan from his wife and uncle aggregating to Rs. 9,00,000/- for a specific purpose, but as the same was not materialised, the assessee deposited the amount back in the Andhra Bank. The Ld. Pr. CIT further observed that later on, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t u/s. 69 of the Act including the addition of Rs. 93,470/- already made in the assessment order and re-compute the total income by passing a consequential order. 4. On being aggrieved, the assessee preferred an appeal before the Tribunal and raised the following grounds: 1. That under the facts and circumstances of the case the orders passed u/s. 263 of the I.T. Act is erroneous both on facts and as well as in law. 2. The learned Pr. Commissioner of Income Tax (in short Pr. CIT ) has wrongly assumed jurisdiction when the facts of the case does not warrant invoking provisions of section 263 of the I.T. Act. 3. The learned Pr. CIT ought to have known that the orders passed by the Assessing Officer (in short AO u/s. 143(3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l of the assessee. 6. Per contra, the Ld. DR relied on the order of the Ld. Pr. CIT and requested to uphold the order of the Ld. Pr. CIT and dismiss the grounds raised by the assessee. 7. We have heard both the parties and perused the orders of the authorities below. It is evident from the records that during the assessment proceedings, the assessee had initially agreed to offer income @8% on the cash deposits of Rs. 11,68,400/-. The Ld. Pr. CIT observed that later on, the assessee retracted his statements for three times and changed his version at every stage of appellate proceedings. The Ld. Pr. CIT further observed that the assessee had claimed expenditure relatable to his professional receipts of the relevant year and arrived at n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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