9911796707
TMI Blog2024 (6) TMI 689X X X X Extracts X X X X X X X X Extracts X X X X ..... d iron scrap purchased have been sold in the Kabadi Market in cash, thus, the source of balance cash deposit in the bank accounts are the cash sales of PVC and iron scrap purchased out of the funds generated by way of total cash deposit in both the bank accounts. Apart from the same, the entire addition made u/s 68 are the cash deposits made in the bank accounts of the Assessee. There is nothing on record to infer that the cash deposits are not the business income of the Assessee. Assessee has not maintained any books of accounts, since the Assessee filed his return u/s 44AD, the A.O. found that the cash deposited in the Assessee s bank account are liable to be taxed u/s 68 of the Act. As observed above, the Assessee had no source of income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... That on the facts and circumstances of the case and the provision of law, that the Ld. CIT(A) has failed to appreciate the facts that the assessment order passed by the Ld. AO under Section 143 (3) of the Income Tax Act is illegal and bad in law. 2. That on the facts and circumstances of the case and the provision of law, that the Ld. CIT(A) has failed to appreciate the facts that the impugned assessment order passed is in violation of the principle of natural justice and without giving adequate time and opportunity to the assessee to represent his case, and thus, the assessment order passed is bad in the eyes of law and liable to be quashed. 3. That on the facts and circumstances of the case and the provision of the law, the Ld. CIT(A) ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal at or before the time of hearing. 3. Brief facts of the case are that, the Assessee filed ITR for Assessment Year 2015-16 declaring total income of Rs. 6,06,270/-. The case was selected for scrutiny through CASS. The reason for scrutiny selection was Low income from TCS receipts and large cash deposits in saving bank account(s) . The assessment was concluded u/s 143(3) of the Act on 29/12/2019 determining total assessed income of the Assessee at Rs. 1,27,33,599/- by making disallowance u/s 68 read with Section 115BBE of the Act on account of unexplained cash deposits. Aggrieved by the order dated 29/12/2017, the Assessee filed an appeal before the CIT(A). The Ld. CIT(A)/NFAC vide order dated 17/10/2023, dismissed the Appeal filed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxed, thus the Ld. CIT(A) erred in not deleting the addition made by the A.O. 6. Per contra, the Ld. Departmental Representative submitted that as per VAT return of all four quarters, the total turnover shows Rs. 85,41,071/- which matches with turnover declared in the Return of Income for Assessment Year 2015-16. The assessee filed return u/s 44AD of the Act declaring presumptive income @ 8.02% of gross turnover of Rs. 85,41,071/-. The assessee has not produced any evidence of sale in respect of unexplained cash deposit, the assessee also not filed tax audit in Form 3CD in respect of Assessee s claim that cash deposit was out of cash sales. The provision of Section 44AD is not applicable to the case of the assessee as the turnover of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 1,11,66,429/- in the bank accounts are the cash sales of PVC and iron scrap purchased out of the funds generated by way of total cash deposit of Rs. 2,33,07,500/- in both the bank accounts. 8. Apart from the same, the entire addition of Rs. 1,11,66,429/- made u/s 68 of the Act are the cash deposits made in the bank accounts of the Assessee. There is nothing on record to infer that the cash deposits are not the business income of the Assessee. The Assessee has not maintained any books of accounts, since the Assessee filed his return u/s 44AD, the A.O. found that the cash deposited in the Assessee s bank account are liable to be taxed u/s 68 of the Act. As observed above, the Assessee had no source of income other than the business an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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