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TMI Blog2023 (12) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... provided by the assessee. Indeed, for estimating the income, the element of guesswork is always involved but the same should not be unrealistic. Primary onus lies upon the assessee which he failed to fulfil and therefore we are of the view that the income estimated by the learned CIT-A in the given facts and circumstances is reasonable and commensurate if the other facts of the assessee are seen in aggregation. As such, the assessee in the later years has purchased expensive cars and has also shown borrowed money but the assessee failed to justify the source of money for the purchase of cars as well as justifying the source of deposits in the bank. Thus, we are of the view that the profit estimated by the learned CIT-A is reasonable and commensurate with the activities carried on by the assessee. Hence the ground of appeal of the assessee is hereby dismissed. Estimating the household expenses from undisclosed sources - HELD THAT:- AO and the learned CIT(A) found that the assessee has earned income from the sale of demolished material of building (imlo). As such the assessee claimed that that he earned net profit at ₹ 25 lakh after making payment of 6.5 crores whereas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of making some investment or expenditure. Thus, in the absence of such information, it can be presumed that the amount of income which has suffered tax in the earlier year has been utilized for the purchase of the car. The earlier income after adjusting household expenses stands at ₹ 42.75 lakhs and the cost of the car purchased in the year comes at ₹ 21.25 lakhs only. Still the balance income available with the assessee stands at ₹ 21.50 Lakhs ( ₹ 42.75 lakhs - ₹ 21.25 lakhs). In view of the above, we hold that there was sufficient tax paid money available with the assessee which has been used for acquiring the car on hand. Therefore, no separate addition on account of purchase of car is required to be made. Hence, the ground of appeal of the assessee is hereby allowed. - Shri Waseem Ahmed, Accountant Member And Ms Madhumita Roy, Judicial Member For the Assessee : Shri Mehul Ranpura, A.R For the Revenue : Shri Ashish Kumar Pandey, Sr. D.R ORDER PER BENCH: The captioned appeals have been filed at the instance of the assessee against the orders of the Learned Commissioner of Income Tax(Appeals)-11, Ahmedabad, (in short ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs from M/s Amidhara Developers Pvt Ltd for ₹ 6.5 crore on a due basis. Thereafter he sold the imlo of demolished part of building to local ceramic manufacturer and scrapper in cash. Out of such cash, generated from the sale of imlo, cheque and demand draft were purchased from Angadiya to make payment to M/s Amidhara Developers Pvt Ltd. In the process, he earned profit of ₹ 25 Lakh only. The assessee also stated that no formal account was maintained by him for the impugned transaction except rough noting. 5.2 However, the AO, in the absence of necessary supporting documents and books of accounts, proposed to estimate income @ 10% on the amount of cheque/ demand draft purchased from Angadiya Yesh Enterprises. The AO after rejecting explanation of the assessee which was identical to the statement given u/s 131(1) of the Act, finally made addition of ₹ 55.41 Lakh being 10% of the cheque or demand draft purchased by the assessee in lieu of cash in the year under consideration. 6. The aggrieved assessee preferred an appeal before the learned CIT(A) and made identical submission that he earned profit in the range of 4 to 5% only. However, the learned CIT(A) consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10. We have heard the rival contentions of both the parties and perused the material available on record. From the preceding discussion, we note that the controversy in the given facts and circumstances relates to the estimation of profit. The AO has estimated the profit on the sale of IMLO at 10% of ₹6.50 crores in 2 different assessment years whereas the learned CIT-A restricted the same to the extent of 7.50%. The assessee has filed the appeal before us and therefore the onus lies upon the assessee in support of his contention that the income earned by him from the sale of IMLO was less than 7.50% of the value of cheque/demand draft purchased from the 3rd party being Aangdiay. Likewise, the assessee has also not given any basis for estimating the income at the rate of 4 to 5% which was agreed by him to have earned from the sale of IMLO. As such we note that, the assessee has not discharged the onus imposed upon him for estimating the income based on comparable cases. Admittedly, the revenue has also estimated the income but without referring to the comparable cases. However, the revenue had to estimate the income in the absence of documentary evidence which was supposed to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the materials available on record. Admittedly, the AO has estimated the household expense of the assessee at ₹ 3 Lakh and held that same were incurred from undisclosed sources of income which was subsequently reduced by the learned CIT(A) at ₹ 1.5 Lakh. At the outset, we note that the AO and the learned CIT(A) found that the assessee has earned income from the sale of demolished material of building (imlo). As such the assessee claimed that that he earned net profit at ₹ 25 lakh after making payment of 6.5 crores whereas AO and CIT(A) estimated the profit @ 10% and 7.5% of ₹ 6.5 crore respectively. In either case, the assessee had sufficient income from the sale of imlo to meet his household expenses. Therefore, making separate addition on account of household expense in the given fact and circumstances will lead to double taxation which is not desirable under the provision of the Act. Thus, we hereby set-aside the finding of the learned CIT(A) and direct the AO to delete the addition made by him. Hence the ground of appeal of the assessee is hereby allowed. 18. In the result, the appeal of the assessee is hereby partly allowed. Coming to ITA No. 92 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income-tax (Appeals)-11, Ahmedabad [CIT(A)] erred on facts as also in law in retaining addition of Rs. 21,25,000/- on account of unexplained expenditure incurred from undisclosed sources. The addition retained is totally unjustified and uncalled for and deserves to be deleted and may kindly be deleted. 4. The learned Commissioner of Income-tax (Appeals)-11, Ahmedabad [CIT(A)] erred on facts as also in law in retaining addition of Rs. 1,50,000/- by estimating household expenditure. The addition retained is totally unjustified and uncalled for and deserves to be deleted and may kindly be deleted. 23. The first issue raised by the assessee is that the learned CIT(A) erred in confirming the addition of ₹ 15,17,000/- by treating the credit in bank account as unexplained. 24. During the year, the saving bank account of the assessee with union bank (UB) got credited for ₹ 15.17 Lakh. The assessee explained the deposit was made out of brokerage income as well as loan from friend s other person/concern. 24.1 However, the explanation was not accepted by the AO on the reasoning that the assessee has not filed any return of income and also not provided documenta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed CIT-A also confirmed the same by observing as under: 7.2 The appellant purchased cheques of Rs. 21,25,000/- by paying similar cash for purchase of ford car. In the course of assessment proceedings as well present proceedings has claimed that the cheques were purchased from profit earned from imlo business as well from commission income etc. However, it is observed from the bank statement of the appellant that though he made various transactions from his bank account with Union Bank as well as with Bank of Baroda however, he did not routed through the funds from this account to purchase car but had obtained cheque by depositing equivalent cash. Under the circumstances the purchase of cheques of Rs. 21,25,000/- is held to be unexplained and as such the addition on this count is sustained. This ground of appeal is dismissed. 33. Being aggrieved by the order of the learned CIT(A), the assessee is in appeal before us. 34. The learned AR before us contended that the car was purchased out of the money earned by him in the earlier years which has also been suffered to tax. Therefore, the money earned in the earlier year has been applied for the purchase of a car and therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ground of appeal raised by the assessee for A.Y. 2011-12 in ITA No. 91/Ahd/2019. Therefore, the findings given in ITA No. 91/Ahd/2019 shall also be applicable for the year under consideration i.e. A.Y. 2014-15. The ground of appeal of the assessee for A.Y. 2011-12 has been decided by us vide paragraph No. 17 of this order in favour of the assessee. The learned AR and the DR also agreed that whatever will be the findings for the assessment year 2011-12 shall also be applied for the year under consideration i.e. AY 2014-15. Hence, the ground of appeal filed by the assessee is hereby allowed. 39. In the result, the appeal filed by the assessee is hereby partly allowed. Coming to ITA No. 94/AHD/2019 for A.Y. 2015-16 40. The assessee has raised following grounds of appeal: 1. The grounds of appeal mentioned hereunder are without prejudice to one another. 2. The learned Commissioner of Income-tax (Appeals)-11, Ahmedabad [CIT(A)] erred on facts as also in law in retaining addition of Rs. 1,938/- on account of unexplained credits in bank account. The addition retained is totally unjustified and uncalled for and deserves to be deleted and may kindly be deleted. 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount is sustained. This ground of appeal is dismissed. 46. Being aggrieved by the order of the learned CIT(A), the assessee is in appeal before us. 47. The learned AR before us contended that the car was purchased out of the money earned by him in the earlier years which has also been suffered to tax. Therefore, the money earned in the earlier year has been applied for the purchase of a car and therefore no separate addition to the given facts and circumstances is warranted. 48. On the other hand, the learned DR vehemently supported the order of the authorities below. 49. We have heard the rival contentions of both the parties and perused the materials available on record. At the outset we note that there was tax paid income available with the assessee from A.Y. 2011-12 and 2012-13 amounting to ₹ 21.50 Lakhs and further the income on account of deposit in bank account for ₹ 15.17 lakhs suffered tax in the hands of the assessee in immediate previous assessment year. Accordingly, the aggregate tax paid income available in the hands of the assessee from earlier years is at ₹ 36.67 Lakhs. There is no finding of the revenue that such income suffered to tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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