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TMI Blog2024 (4) TMI 489X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 44AB of the Act. In the assessment order passed u/s. 147 r.w.s. 144B of the Act dated 21.03.2023 for the Asst. Year 2017-18, the AO called for information u/s. 133(6) and verified the cash deposit in Industrial Sind Bank and Bank of Baroda. Further the assessee filed the Return of Income u/s. 44AD of the Act showing 8% profit, whereas the assessee offered income at 10.19% to be the profit on the scrap sales, which was accepted by the Assessing Officer and passed a Nil demand. Thus in our considered opinion, the Ld. CIT(A) is not correct in confirming the entire addition made by the Assessing Officer which was also an exparte assessment order. Even in the present assessment year, the assessee offered 8.35% on the sales turnover, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... craps. During the Financial Year 2010-11, the assessee made cash deposits of Rs. 17,70,150/- in his State Bank of India Account on the sale of scraps. The assessee also withdrawn cash from the above account for purchase of scrap, but all the above cash transactions were below Rs. 25,000/-. 3.1. During the Financial Year, the assessee made total sales of Rs. 18,95,280/- on account of scrap trading and earned profit of Rs. 1,58,314/- which is 8.35% of total turnover. For the Assessment Year 2011-12, the assessee was required to file his Return of Income, if the gross taxable income exceeds Rs. 1,60,000/. Since the assessee s total income is Rs. 1,58,314/- only, which was below the taxable limit, assessee has not filed the Return of Income for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in confirming addition made by Ld. AO of Rs. 17,70,150/- on account of cash deposits made u/s 69A of Income Tax Act, 1961. It is submitted that the Ld. AO has made an addition u/s 69 of the Act, whereas the learned Commissioner of Income Tax (Appeals) has confirmed the same addition u/s 69A of the Act without, which shows clear contradictions between lower authorities itself about applicability of provisions of Act. It is therefore submitted that the whole addition made and confirmed of Rs. 17,70,150/- is without any basis and thus the same is ought to have been deleted. The same be held now. 2. The learned AO has erred both on facts and in law in making the addition of Rs. 17,70,150/-invoking the provisions of Section 69 of Income Tax Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icable in case of Appellant. Hence, in any event, the addition and confirmed of Rs. 17,70,150/- u/s 69 69A of the Act being illegal and unjustifiable be deleted. 5. The order passed by the learned Commissioner of Income Tax (Appeals) is bad in law and contrary to the provisions of law and facts. It is submitted that the same be held so now. 6. Your appellant craves leave to add, alter and/or to amend all or any of the grounds before the final hearing. 6. Ld. Counsel Sulabh Padshah appearing for the assessee submitted before us copy of the documents filed before the Ld. CIT(A) as well as copy of the assessment order dated 21.03.2023 by the Assessing Officer wherein cash deposits of Rs. 63,08,150/- deposited in three bank accounts of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Sind Bank and Bank of Baroda. Further the assessee filed the Return of Income u/s. 44AD of the Act showing 8% profit, whereas the assessee offered income at 10.19% to be the profit on the scrap sales, which was accepted by the Assessing Officer and passed a Nil demand. Thus in our considered opinion, the Ld. CIT(A) is not correct in confirming the entire addition made by the Assessing Officer which was also an exparte assessment order. Even in the present assessment year, the assessee offered 8.35% on the sales turnover of Rs. 18,95,280/- which is well above 8% as prescribed u/s. 44AD of the Act. Therefore we have not hesitation in deleting the addition made by the Assessing Officer. 9. In the result, the appeal filed by the Assessee is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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