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TMI Blog2018 (7) TMI 2326X X X X Extracts X X X X X X X X Extracts X X X X ..... off on account of amount from debtors and unsecured loan from relatives respectively should be given only if the estimation of income have been made only on the balance amount. Therefore, the claim that cash deposit of Rs.6,39,567/- should be considered and for set off against opening cash balance available with the assessee and after allowing set off of Rs.1,06,429/-, the balance figure comes to Rs.5,33,138/- only and this amount the profit should have been estimated by the AO. Assessee has shown cash sales amounting Rs.7.42 lakhs only for which bills have been produced during the course of assessment proceedings. Therefore, we are not persuaded with the contention that the set off of Rs.7.42 lakhs being cash sales should be given again ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st income on bank deposits under other source. Therefore, ground no.3 of appeal is dismissed. - SHRI C.M.GARG, JUDICIAL MEMBER AND SHRI O.P.MEENA, ACCOUNTANT MEMBER For the Assessee : Shri Sapnesh Sheth, CA For the Revenue : Shri Arvind Kumar Singh, Sr.DR ORDER PER O. P. MEENA, ACCOUTANT MEMBER: 1. This appeal by the assessee is directed against the order of learned Commissioner of Income tax (Appeals)-1, Surat (in short the CIT (A) ) dated 17.03.2015 pertaining to Assessment Year 2011-12, which in turn has arisen from the assessment order passed under section 143 (3) dtd. 11.02.2014 of Income Tax Act,1961 (in short the Act ) by the Income Tax Officer, Ward-6(2) Surat (in short the AO ). 2. Ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f income was considered as opening cash balance instead of Rs.6,90,734/- claimed by the assessee. Therefore, the net addition of Rs.15,00,271/- was made to the total income of the assessee. 5. Being aggrieved, the assessee filed appeal before the ld.CIT(A), wherein, it was claimed that cash deposits of Rs.16,06,700/- is out of opening cash balance of Rs.6,90,734/-, cash received from debtors at Rs.1,79,920/-, and cash sales of Rs.7,42,213/- which has been shown in the Return of income and unsecured loan from relatives at Rs.45,000/-. Without prejudice, it was also claimed that the addition if any can be made only to the extent of peak credit balance of Rs.3,51,042/- appearing on 27.12.2010 in the bank account. However, the CIT(A) observe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3/- in the Return of income. It was also contended that E-return filed by the assessee shows gross receipts of Rs.20.08 lakhs in column 51 of the A.Y. 2010-11. Therefore, the AO should have accepted the opening balance claimed by the assessee. In view of these facts, it was claimed that the total turnover of the assessee may be considered as total cash deposits made during the year at Rs.16,06,700/- on which net profit may be estimated as per provisions of section 44AD of the Act. 7. Per contra, the Senior Departmental Representative (Sr.DR) contended that the assessee has shown total turnover of Rs.7.42 lakhs in the Return of income, whereas cash deposits amounting to Rs.16.06 lakhs made in the bank account are not related with the sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount of the assessee, which are made during the month of December 2010 and January 2011 only. Therefore, it cannot be said that these cash deposits are representing unaccounted cash sales of the assessee. Further, the AO has also pointed out that these deposits are not related to cash sales as the bills produced were not matching with reference to sales bills. Therefore, this contention of the assessee is not found to be accepted. However, considering the totality of facts and taking a harmonious construction and considering the fact that the assessee has filed Return of income under the provision of section 44AD. Therefore, it would be reasonable to restrict the addition of cash deposit to the extent of peak credit balance of Rs.3,51,042 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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