9911796707
TMI Blog2023 (2) TMI 260X X X X Extracts X X X X X X X X Extracts X X X X ..... t, the learned Commissioner of Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in reopening the assessment u/s 147 of the Income Tax Act, 1961 and issuing notice u/s 148 of the Income Tax Act, 1961. 2. On the facts and in the circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in not considering the plea for 8% G.P. amounting to Rs. 2,81,750/- from bank account transaction of business. 3. On the facts and in the circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Appeals) has erred in confirming the addition of Rs. 8,12,229/- on account of peak c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sponse to notice under Section 133(6) of the Act. The Assessing Officer on the basis of such details, noted that there was a total credit of Rs. 35,21,733/- which includes cash deposit of Rs. 24,45,800/- and other credit of Rs. 10,75,853/-. The Assessing Officer again issued show cause notice on 11/09/2019 as to why total credit of Rs. 35,21,733/- should not be treated as unaccounted income. The Assessing Officer recorded that the assessee filed his return of income on 27/09/2019 declaring income of Rs. 2,81,750/- on gross total turnover of Rs. 35.21 lacs under Section 44AD of the Act. The Assessing Officer after serving notice under Section 143(2) and supplying the reasons recorded, proceeded for assessment. The assessee was issued show ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the deposit in undisclosed bank account. The bank deposits contained deposits as well as subsequent withdrawal and adding back the entire deposits would be arbitrary and harsh. The ld. CIT(A) find that the peak credit is Rs. 8,12,229/- and accordingly restricted the addition to that extent and thereby deleted the remaining addition. Further aggrieved, the assessee has filed the present appeal before this Tribunal. 4. At the outset of hearing, the learned Authorised Representative (ld. AR) of the assessee submits that he is not pressing ground No. 1 of the appeal which relates to validity of reopening under Section 147 and notice under Section 148 of the Act. The learned Senior Departmental Representative (ld. Sr. DR) for the revenue has n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the income form such cash deposits may be made. To support his submission, the ld. AR has relied on the following case laws: (i) CIT-VII Vs Pradeep Shantilal Patel (2014) 42 taxmann.com 2 (Guj) (ii) Mukesh Gamanbhai Patel Vs ITO ITA No. 1636/Ahd/2013 dated 16/10/2018 (iii) Bharat GAnpatram Vys Vs ITO ITA No. 186/Srt/2022 (iv) Jagdishbhai Savjibhai Patel Vs ITO ITA No. 67 & 68/srt/2019 dated 27/07/2022. (v) Nikhil Jatinkumar Lapsiwala Vs ITO ITA No. 219/Srt/2021. 7. On the other hand, the ld. Sr. DR for the revenue has vehemently supported the orders of the lower authorities. The ld Sr DR for the revenue further submits that even if it is considered that the assessee was doing some business as claimed, the entire depos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee was doing a small business of mobile, accessories and recharge coupons etc. Thus, after considering the submissions of the ld AR for the assessee, I find merit in his submission that the assessee was doing some business activity, though it was not disclosed to the department. 9. The Hon'ble Gujarat High Court in CIT Vs Pradeep Shantilal Patel (supra) held that where assessee admitted that cash deposit pertains to his retail business but details and nature of business were not forthcoming from record, considering the total turnover of assessee, net income had to be determined under Section 44AF. Further the Coordinate Bench of this Tribunal in Smt. Krushangi Keyur Bhagat Vs ITO in ITA No. 1434/Ahd/2013 dated 26/09/2018 almost on si ..... X X X X Extracts X X X X X X X X Extracts X X X X
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