9911796707
TMI Blog2024 (8) TMI 1361X X X X Extracts X X X X X X X X Extracts X X X X ..... to Rs. 2,56,000/- as against addition of Rs. 32,00,000/- made by the AO. The reason for adopting the net profit rate of cash deposit is that assessee does not have any source of income nor has made any investment and is only involved in petty retail business. Thus, it cannot be held that assessee had some other unexplained cash from some other sources. Accordingly, the addition is sustained on the basis of application of net profit of 8% on cash deposits as the same is treated as income from business and profession and not to be taxed u/s. 69A r.w.s. 115BBE. Accordingly, the appeal of the assessee is partly allowed. - Shri Amit Shukla, Judicial Member And Shri. Ratnesh Nandan Sahay, Accountant Member For the Assessee : Shri. Himanshu Gan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me Tax Act, 1961 is not applicable when the source of deposit is trade receipt and past savings. 3. The brief facts are that assessee is an individual deriving income from manufacturing and selling of ladies lower garments. Since assessee s total sales were below the threshold limit of getting the accounts audited u/s. 44AB, it has been filing its return of income under presumptive rate of taxation u/s. 44AB. It has filed its return of income for A.Y. 2017-18 on 02/08/2017 declaring total income of Rs. 2,69,780/- which included profit u/s. 44AD @8% of Rs. 22,53,441/-. The assessee s case was selected for scrutiny under CASS to verify the cash deposits during the demonetization period. As per the information available on ITBA portal, assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made with the party and address and PAN of M/s. Sarita Exports nor he could produce any bills and delivery challans, therefore, ld. AO rejected the claim of the assessee. Neither assessee could establish the creditworthiness and genuineness of the transaction done with M/s. Sarita Exports by the assessee dated 25/02/2013 mentions that there is no liability towards the assessee. On enquiry the party stated that they had already returned all the supplied material back to the assessee before the date of dishonor of cheques. Accordingly, ld. AO after enquiry from the said party treated the entire amount deposited in the bank account of Rs. 32,00,000/- as unexplained and added u/s. 69A r.w.s. 115BBE. The ld. CIT (A) too has confirmed the said ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2,56,000/-. Thus, the addition is restricted to Rs. 2,56,000/- as against addition of Rs. 32,00,000/- made by the ld. AO. The reason for adopting the net profit rate of cash deposit is that assessee does not have any source of income nor has made any investment and is only involved in petty retail business. Thus, it cannot be held that assessee had some other unexplained cash from some other sources. Accordingly, the addition is sustained on the basis of application of net profit of 8% on cash deposits as the same is treated as income from business and profession and not to be taxed u/s. 69A r.w.s. 115BBE. Accordingly, the appeal of the assessee is partly allowed. 5. In the result, appeal of the assessee is partly allowed. Order pronounce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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