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TMI Blog2023 (9) TMI 775X X X X Extracts X X X X X X X X Extracts X X X X ..... rence between cash deposit in the bank account is on account of cash sales or recovery from earlier year and hence, AO has taken a possible view and estimated the net profit on the differential cash deposit treating the same as sales. AO has taken one of the possible views and hence, we find no infirmity in the assessment order and we find no error or prejudice in the order of the AO. Therefore, the order of PCIT is set aside and restore the order of the AO. Appeal filed by the assessee is allowed. - SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER Appellant by : Shri S. Sridhar, Advocate Respondent by : Shri S. Senthil Kumar, CIT ORDER PER MAHAVIR SINGH, VP: This app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e are inclined to condone the delay. Hence, delay is condoned and appeal is admitted. 3. The only issue in this appeal of assessee is as regards to the order of PCIT revising the assessment framed by the AO for the relevant assessment year 2017-18 vide order dated 21.12.2019, u/s. 263 of the Act for the reason that the order of the assessment is erroneous and prejudicial to the interest of Revenue because the AO has wrongly estimated profit rate @ 8% on the differential cash deposit of Rs. 12,16,370/-. For this, assessee has raised ground Nos. 1 to 8, which are factual, argumentative and hence, need not be reproduced. 4. Briefly stated facts are that the assessee is trading in cellular E-recharge of Vodafone Mobile Services Ltd. The A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of cash deposit, as pointed out by the AO. The debtor collection was also being done by cash which were deposited in the bank. It was claimed that certain amount of withdrawals from banks were not utilized for the purpose for which the same had been withdrawn and hence, they were once again deposited in the bank. The difference between cash deposited in bank and cash sales in its in entirety is not to be added as income. The difference pointed out is neither income nor omission to be added as income. By considering this, the AO had made an addition toward income of Rs. 1,00,000/- estimating @ 8% on an agreed basis, on the difference of Rs. 12,16,374/-. 5.2 But the PCIT noted that no additional expenditure was incurred by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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