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TMI Blog2023 (9) TMI 829X X X X Extracts X X X X X X X X Extracts X X X X ..... eturn filed taking into account the expenses to be incurred in deriving the commission. Based on these findings, the AO estimated the net profit at 0.75% of gross receipts. After perusal of the assessment order, the assessing officer himself admitted that the assessee has not furnished any books of accounts, proof of evidence in the form of bills /vouchers for total quantity of fish sold to the traders through mediation during the year to ascertain actual quantity of fish sold and also price per kg. and commission derived etc. Therefore, in the absence of such bills, the AO has estimated the profit @0.75%, but he has not verified the sources for cash deposits. Therefore, we are of the view that the Ld.Pr.CIT has rightly set aside the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner of Income Tax and could not approach the auditors in time. He finally approached auditors who had advised him to prefer an appeal on the order of the Ld. Pr. CIT. He pleaded that the delay is not intentional, therefore, the delay of 69 days may be condoned and the appeal may be admitted for adjudication. 2. We have heard the Ld. AR and find that the reasons mentioned in the petition for condonation of delay are reasonable and convincing, therefore, the delay of 69 days is condoned and the appeal is admitted for adjudication. 3. Brief facts of the case are that the assessee is an individual, deriving commission from trading in fish, filed his return of income for the A.Y. 2017-18 on 21.10.2017, admitting total income of Rs. 8,54,7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see has given his reply, stating that, he has explained the source for cash deposits made in the bank account of the assessee. Since the assessee is engaged in the business of fish trading in the name and style of M/s Sri Vishnu Fish Packers, all the deposits pertained to sale of fish. The AO called for the details and examined the same and estimated the profit @0.75% of the turnover, therefore, it is not prejudicial to the interest of the revenue. After considering the submissions of the assessee, the Ld. Pr. CIT did not satisfy with the submissions made by the assessee and stated that as per assessment record, copies of cash book, sales books and stock register are not found and in the absence of proper verification of business, there is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its in the present assessment year and therefore would have accepted that the cash deposits are nothing but cash sales of fish. 4. On the facts and circumstances of the case, the Ld.Pr.CIT ought to have appreciated that the appellant while furnishing online response to the Cash Transactions 2016 replied that the assessee is engaged in business of fish trading and the deposits pertain to fish sales and the Assessing Officer called for justification about the large deposits made into the bank account in the notice issued u/s. 142(1) of the Act and the appellant accordingly furnished the details of reasons for such deposits. Therefore, the observation Of the Ld.Pr.CIT that the appellant has not examined the cash deposits made into the ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same was also accepted in the previous year. Hence, there is no new apportion of cash deposits in the present assessment year and there is no prejudice to the interest of the revenue. He further submitted that the AO has compared with similar comparable cases and estimated the profit @0.75%. Hence, the order passed by the AO is not erroneous or prejudicial to the interest of the revenue. He, therefore, pleaded to set aside the order passed u/s 263. 6. Per contra, the Ld.counsel for the revenue submitted that the AO has not properly examined the cash deposits made by the assessee during the demonetisation period. He further submitted that as per the submissions of the assessee, all the cash deposits are out of the cash sales of fish in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion admitted in the return filed taking into account the expenses to be incurred in deriving the commission. Based on these findings, the AO estimated the net profit at 0.75% of gross receipts at Rs. 17,06,29,327/- which amounts to Rs. 12,79,720/-. After perusal of the assessment order, the assessing officer himself admitted that the assessee has not furnished any books of accounts, proof of evidence in the form of bills /vouchers for total quantity of fish sold to the traders through mediation during the year to ascertain actual quantity of fish sold and also price per kg. and commission derived etc. Therefore, in the absence of such bills, the AO has estimated the profit @0.75%, but he has not verified the sources for cash deposits. There ..... X X X X Extracts X X X X X X X X Extracts X X X X
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