9911796707
TMI Blog2024 (8) TMI 813X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount of cash deposit is also not from the business of the assessee. This is also for the reason that there is no evidence of purchase and sales with respect to the turnover. Accordingly, we find that the learned lower authorities are not correct in not accepting that the amount of cash deposited is out of the retail trading of Jeans. Determination of profit to be taxed in the hands of the assessee - We find that assessee himself has offered to be taxed at the rate of 8.65%. Therefore, we direct AO to tax the income of the assessee at the rate of 8.65% of the amount of cash deposited which amounts to ₹ 2,40,110/-. The addition to that extent is confirmed and balance addition required to be deleted. Accordingly, the orders of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 143 (3) r.w.s. 147 of the income tax act 1961 by the learned income tax officer, ward 21 (2) (3) Mumbai is against the law and facts on the file in as much as he was not justified to add back a sum of Rs. 2775833/- Deposited by Assessee from sales jeans a cash balance available with him, by responding the provisions of section 68 on the ground that genuineness and creditworthiness of the receipts had allegedly not proved. 4) The Assessing Officer Arithmetically not calculated cash Deposit and cash withdraw from the bank to ascertain the peak figure not justified. 5) The Assessing should have calculate the profit chargeable to the under section 44AD on peak figure (Credit Debit) 6) The Assessee craves to leave or amend or after any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ale receipt. The learned Assessing Officer found that over and above the cash deposit, there are other deposits also in the bank account. He noted that against the sale of ₹ 14,19,911/-, assessee has filed return of income of ₹ 2,13,130/-. During Assessment, assessee increased the sales to ₹ 38,85,650/- and applied provisions of Section 44AD and worked out net profit of ₹ 3,36,460/-. The learned Assessing Officer noted that assessee has offered profit at the rate of 8.60% while filing the return of income. The learned Assessing Officer further doubted the existence of retail business of the assessee as assessee could not establish single instances of purchase and sales during the assessment proceedings. Further, asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also explained purchases and sales both are in cash but could not submit any information or evidence of purchase or sales. Therefore, lower authorities did not believe that assessee was carrying on any retail business. There is a fallacy in the stand of the learned lower authorities because they have accepted the turnover of ₹ 14,19,911/- as turnover of the assessee for which income under Section 148 of the Act was offered to the extent of ₹ 2,13,130/-. Therefore, Revenue has accepted the assessee is carrying on the business at least to the extent of turnover of ₹ 14,19,911/-. As the part of the fact of the business is accepted by the Revenue, there is no reason that why the amount of cash deposited could not be accepted a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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