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TMI Blog2018 (9) TMI 2092X X X X Extracts X X X X X X X X Extracts X X X X ..... Jari business is estimated @ 10% of total turnover of the assessee and we direct the AO to calculate the income of the assessee accordingly on the turnover of Rs. 11,84,036/-. Accordingly, ground No.1 of the assessee is dismissed and ground No.2 of the assessee is partly allowed. - ITA Nos. 571 & 572/Ahd/2015/SRT - - - Dated:- 18-9-2018 - SHRI C.M. GARG, JUDICIAL MEMBER AND SHRI O.P. MEENA, ACCOUNTANT MEMBER For the Assessee : Shri P.M.Jagaseth, C.A. For the Revenue : Smt. Smitha V. Nair, Sr. D.R. ORDER PER C.M. GARG, JUDICIAL MEMBER: These two appeals have been filed by the Assessee directed against the common order of Commissioner of Income Tax (Appeals)-1, Surat ( CIT(A) for short) dated 09.02.2015 for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onfirming the action of the assessing officer and calculating of gross profit of Rs.3,15,190/-, which is product of 26.62% of turnover of Rs. 11,84,036/- during the relevant financial period of 07.07.2005 to 31.03.2006. 4. The ld. AR has also submitted that as per order of ITAT (SMC) A Bench dated 09.12.2015 in assessee s own case for AY 2008-09 i.e., ITO vs. Shri Shasikant Tansukhlal Mandlesara, the Tribunal has dismissed appeal of the Revenue by confirming the conclusion drawn by the ld. CIT(A), wherein peak balance during the year and estimated additional capital requirement as unexplained investment has been treated as income of the assessee in the subsequent assessment year. The ld. AR also pointed out that in that year also the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he provision of s. 44AD of the Act and under this provision 8% of turnover can be treated as income of the assessee therefore, there was no justification of estimating the income from undisclosed turnover @ 26.62%. 7. On careful consideration of above rival submissions, the ld. AO as well as the ld. CIT(A) has not disputed the fact that the assessee is in the Jari sale business and he is selling goods to the purchasers located in the South India and except amount deposited to his bank account no other transaction have been traced or brought on record. In this situation, we are in agreement with the contention of the ld. AR that this amount was received through bank account from the purchasers located in the South India and this amount is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eposited to the bank account of the assessee by the respective purchasers cannot be treated as income of the assessee only profit element therein can be treated as income of the assessee from Jari business. Therefore, in our considered opinion, the all possible leakage of revenue would be covered if, the profit/income earned from the Jari business is estimated @ 10% of total turnover of the assessee and we direct the AO to calculate the income of the assessee accordingly on the turnover of Rs. 11,84,036/-. Accordingly, ground No.1 of the assessee is dismissed and ground No.2 of the assessee is partly allowed. 9. Since, facts and circumstances of AY 2006-07 are quite identical and similar to the facts of AY 2007-08 therefore, our conclusi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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