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TMI Blog2023 (9) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... savings bank account when the nature of business was not forthcoming from the record, held that when the assessee admitted the cash deposits pertaining to his retail business and nature of business was not forthcoming on record, the net income has to be determined on the basis of turnover of assessee. Thus,keeping in view that the total deposits in bank account of assessee, therefore deem it fit and proper to estimate the income of assessee @ 10% of credit / deposits in assessee s bank account. - Shri Pawan Singh, Judicial Member For the Assessee : Shri Sapnesh R Sheth, CA For the Revenue : Shri Vinod Kumar, Sr-DR ORDER UNDER SECTION 254(1) OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o return of income was filed by assessee for the year under consideration, i.e., 2011-12. The Assessing Officer was having information as per details in the ITD systems that assessee has made cash deposit of Rs. 13,27,000/- in his bank account with the State Bank of India Branch and also received an amount of Rs. 1,00,800/- on account of contract receipts on which Tax Deducted at Source (TDS) under section 194C was deducted. On the basis of such information, the Assessing Officer was having belief that the income chargeable to tax had escaped assessment to the extent of Rs. 14,27,800/-. The Assessing Officer after recording the reasons of re-opening issued notice under section 148 on 23.03.2018. The Assessing Officer recorded that despite s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee challenged the validity of re-opening as well as additions on merit. 4. The NFAC/Ld. CIT(A) after considering the submission of assessee upheld the validity of re-opening as well as additions on merit. While upholding the validity of re-opening, Ld. CIT(A) held that neither assessee disputed the issuance of notices nor filed return of income for the impugned assessment year. At the stage of reopening, only a reasonable belief is required that income has escaped assessment. The reopening is based on basic and valid information of cash deposit. The Ld. CIT(A) also rejected the contention of assessee that assessment order was passed beyond the limitation. The Ld. CIT(A) held that assessment order was passed within nine months from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ebit entries in assessee s bank account. The Ld. AR for the assessee submits that Hon'ble jurisdictional High Court in the case of Commissioner of Income-tax- Vs. Pradeep Shantilal Patel (2014) 42 tamann.com 2 (Guj)/[2014] 221 Taxman 436 (Guj)[19-11- 2013] held that where assessee admitted that cash deposits pertained to his retail business but details and nature of business were not forthcoming from record, considering total turnover of assessee, net income had to be determined under section 44AF. The Ld. AR for the assessee submits that Assessing Officer has already taxed @ 8% of contract receipt, therefor on reasonable estimation of income may be upheld and not the entire transaction. The Ld. AR for the assessee further submits that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relates to AY 2011-12 and no useful purpose will be served in sending the matter back to the assessing officer, if reasonable estimation of income is made by the Tribunal. 9. I have considered the submission of both the parties and perused the order of lower authorities carefully. I have also deliberated case law relied by Ld. AR for the assessee. Though I find that assessee has raised specific ground of appeal regarding validity of re-opening, however, no submission was made against such ground of appeal before me. Therefore, Ground Nos. 1 2 are treated as not pressed and thereby dismissed. 10. Ground No.3 relates to addition of Rs. 14,29,763/-. I find that Assessing Officer made addition of entire credit in the bank account of ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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