9911796707
TMI Blog2023 (12) TMI 698X X X X Extracts X X X X X X X X Extracts X X X X ..... ORDER Per Bench : This is an appeal filed by the assessee against the order of the ld. Pr. CIT, Sambalpur, dated 18.03.2022, passed in ITBA/REV/F/REV5/2021-22/1041011837(1) for the assessment year 2017-2018. 2. It was submitted by the ld. AR that the appeal filed by the assessee is delayed by 199 days. It was the submission that the delay was on account of medical treatment of the assessee s father and assessee s wife. It was the submission that the assessee is an individual engaged in trading of potatoes, onion and garlic in the remote area of the district of Deogarh, Odisha. It was the submission that the assessee was not well- versed in taxation issues and on account of the medical treatment of the assessee s father as also the assessee s wife, the assessee could not file the appeal within the time. The assessee has also filed necessary affidavit for condonation of delay of 199 days. Ld. CIT-DR has not raised any serious objection. Consequently, the delay in filing the appeal is condoned and the appeal is disposed off on merits. 3. On merits, it was the submission that the ld. AR that the original assessment order in the case of the assessee came to be comple ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etter dated 27/12/2019 to estimate the net profit u/s 44AD of the Act. 5.2. Based on the information filed and examination of the case in the light of direction u/s 144A, the assessment was completed and the same is reproduced verbatim to appreciate the' issue in its true perspective, Assessment Order u/s 144 of the I.T. Act, 1961 dated 30/12/2019 The Assessee Sri Sibasankar Sahu is an individual engaged in trading of potatoes, onions and garlic, The Assessee filed his return of income for the A. Y., 2014-15 to 2016-17, However, he has not furnished his return of income for the A. Y. 2017-18. Sri Sibasankar Sahu had maintained bank account bearing no. 19644015002463 19641131000538 at Oriental Bank of Commerce. As per information available on record in the departmental system data base, during the F.Y 2016-17 the asses se had deposited aggregate cash of Rs. 2,95,45,000/- in his bank accounts maintained at Oriental Bank of Commerce. Though the assessee was engaged in business activities and has earned income from it and had also deposited substantial cash in his bank accounts, he had not filed his Return of Income for the A/Y 2017-18. Therefore as per Board ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has also got his books audited for the A.Y. 2018-19 and the business code has been declared as Wholesale Trading . In his ROI for the A.Y. 2016- 17, the assessee had declared following facts and figures: - Particulars Balance as on 31.03.2016 Sundry debtor Rs. 1,96,350/- Sundry creditor Rs. 85,928/- Closing stock Rs. 12,47,589/- Cash in hand Rs. 1,67,415/- Gross sales Rs. 32,32,638/- Net profit (u/s 44AD) Rs. 2,60,650/- (@8%) Income u/s. 44AE Rs. 1,80,000/- 4. the trends of month wise sales, purchase as furnished by the assessee and cash deposit in the bank accounts is presented in a tabular form as under:- Month Transfer out Purchases Sales Cash and deposit in bank account A B c d e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee also shows that a sum of Rs. 1,68,64,270/- was transferred to different third parties accounts These payments are related to purchase payments made by the assessee during the F.Y. 2016-17. However, among these transfer payments some payment relating to automobile loans repayments are made. Aggregate of such payments is Rs. 2,88,000/-(Rs.12000 per month per vehicle for two vehicles). As per ITR for the A.Y. 2016-17, the sundry creditor outstanding as on 31.03.2016 was Rs. 85,928/-. Thus even if an amount of Rs. 3,73,928/-(Rs. 2,88,000/- + Rs. 85.928/-) is debited from the transfer out payments, the aggregate purchase payments would be Rs. 1,64,90,342/-(Rs. 1,68,64,270 less Rs. 3,73,928/-). (iii) But the assessee in his compliance has stated that, gross purchase for the year was of Rs. 1,48,09,973/- only. But the purchase payments made from the bank account to different parties shows that, the purchase was of Rs. 1 ,64,90,342/-. The assessee may argue that, this difference is because of inclusion of VAT component in the payment. But, vegetables items like potato, onion and garlic are exempt from VAT. Therefore the gross annual purchase of the assessee for the year is taken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2017-18. Add:Rs.14,33,943/- 7. Addition on account of undisclosed income from hiring of vehicle u/s 44AE The assessee has also owned two goods carriage vehicles which were playing on hiring business. Moreover, in the ITR for the A.Y. 2016-17 he had declared an income of Rs. 1,80,000/- (Rs. 90,000/- per vehicle) u/s 44AE of the Act. As the assessee has not filed his ROI income for the A.Y. 2017-18 nor he has paid due tax on this income, he has evaded paying tax on the income earned from plying hiring business. This income of Rs. 1,80,000/- is liable to be added to the income of the assessee for the A. Y 2017-18. Add: Rs. 1,80,000/- 5.3 I have also perused the AIR information, it is found that cash deposits of Rs. 1,47,72,650/- has been reported in the AIR twice. Whereas an amount of Rs. 1,47,72,650/- has been shown in the name of M/s Deepak Stores (first/sole account holder), an equivalent amount has also been reflected in the same account No. 1644015002463 maintained with Oriental Bank of Commerce. Further, the date of uploading of both the information is the same, i.e. 26/5/2017. Thus, the actual cash deposit as per this information is Rs. 1,47,72, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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